What is Doughnut Economics?

What is Doughnut Economics?

Nilgün Aytekin // 22.07.2024

Doughnut Economics is an alternative economic model developed by economist Kate Raworth in 2017 as detailed in her book “Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist.” This model emphasizes that economic activities should be conducted sustainably within both social and environmental boundaries. It derives its name from the shape of a doughnut, featuring a “hole” in the center and a “ring” around it.

The Components of Doughnut Economics:

• Inner Ring (Social Foundation): This ring represents the minimum social standards necessary to meet everyone’s basic human needs. These standards include essential rights such as adequate food, water, healthcare, education, housing, income, peace, and justice. When these needs are not met, people fall into the “hole” of the doughnut, indicating they are below the social foundation.
• Outer Ring (Environmental Ceiling): This ring represents the planet’s ecological limits, which should not be exceeded to maintain environmental sustainability. These boundaries include factors such as climate change, biodiversity loss, nitrogen and phosphorus cycles, freshwater use, land use change, ocean acidification, chemical pollution, and air pollution.
• Area Inside the Doughnut: This area represents the safe and just space for humanity, situated above the social foundation and below the environmental ceiling. It symbolizes a sustainable economy where everyone’s basic needs are met while respecting the planet’s ecological limits.

Amsterdam is one of the first cities to adopt the Doughnut Economics model, using it to achieve social and environmental goals through sustainable urban planning and policy development.

Core Principles of Doughnut Economics:

Redefining Well-being: Shifting the focus of economic success from merely gross domestic product (GDP) to human well-being and planetary health.

Social Justice: Emphasizing that economic systems should meet the basic needs of all people.

Ecological Sustainability: Highlighting the importance of sustainable use of natural resources and maintaining environmental boundaries.

Transformative Approaches: Adopting innovative and transformative policies to build a sustainable and just economy beyond traditional economic models.

Doughnut Economics offers an alternative to traditional growth-focused economic models, aiming to provide more holistic and sustainable solutions to the social and environmental challenges of the 21st century.

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