What are Donut Economics?
DonutEconomics is a new economic model that was proposed by Kate Raworth in her book, "Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist." The model is based on the idea that the economy should be designed to meet the needs of all within the means of the planet.
The Donut model, as per the image below, is represented by a doughnut shape, with the social foundation as the inner ring and the ecological ceiling as the outer ring. The social foundation represents the basic needs that all people should have, such as food, water, shelter, healthcare, education, and political voice. The ecological ceiling represents the environmental limits that we should not exceed, such as climatechange, biodiversity loss, and ocean acidification.
The space between the social foundation and the ecological ceiling is the "doughnut hole." This is the space in which humanity can thrive, but only if we design our economies in a way that respects both social and environmental limits.
Donut Economics offers a new way of thinking about economics that is more holistic and sustainable. It recognizes that the economy is not separate from society and the environment, but is instead embedded within them. It also recognizes that we need to find ways to grow the economy without harming the planet.
Here is an example of the donut model applied to Cambridge City in 2020:
The Principles of Donut Economics
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Regenerative and distributive: The economy should be designed to be regenerative, meaning that it should produce more than it consumes. It should also be distributive, meaning that the benefits of economic growth should be shared more evenly.
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Local and global: The economy should be designed to be both local and global. It should support local economies and communities, while also being mindful of the global impacts of our economic choices.
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Resilient and adaptable: The economy should be designed to be resilient and adaptable to change. It should be able to withstand shocks and stresses, and it should be able to adapt to new challenges.
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Just and equitable: The economy should be designed to be just and equitable. It should ensure that everyone has the opportunity to participate in the economy, and that everyone benefits from economic growth.
The Benefits of Donut Economics
Donut Economics offers a number of benefits, including:
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It can help us to achieve sustainable development. Donut Economics recognizes that the economy is embedded within society and the environment, and it proposes a model that can help us to meet the needs of both.
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It can help us to reduce poverty and inequality. Donut Economics proposes a model that is more distributive, meaning that the benefits of economic growth are shared more evenly. This can help to reduce poverty and inequality.
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It can help us to build resilience. Donut Economics proposes a model that is more resilient and adaptable to change. This can help us to withstand shocks and stresses, and it can help us to adapt to new challenges.
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It can help us to create a more just and equitable world. Donut Economics proposes a model that is more just and equitable. This can help to ensure that everyone has the opportunity to participate in the economy, and that everyone benefits from economic growth.
Conclusion
Donut Economics is a new economic model that offers a more holistic and sustainable way of thinking about economics. It recognizes that the economy is not separate from society and the environment, but is instead embedded within them. It also recognizes that we need to find ways to grow the economy without harming the planet.
The Donut model is still in its early stages of development, but it has the potential to be a powerful tool for achieving sustainable development. It is a model that is worth considering as we look for ways to create a more just and equitable world.
To see the donut economics model in action- here is a link to a great example for Amsterdam.
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