Why are we talking a doughnut here? Are we suggesting to eat our way out of the climate crisis and fast fashion? Of course not! The Doughnut we’re talking about here is the Doughnut Economy. This economic theory developed by the economist Kate Raworth is revolutionary! And could very well help us imagine a new way of doing things: beyond mere eco-efficiency and dreams of decoupling economic activity and its environmental impacts.
The first and most important thing to know, so that you can understand this theory, is that environmental impacts are not restricted to emissions. To really understand the environmental crisis, we need to consider all planetary boundaries. If you are not familiar with this concept, planetary boundaries are basically the limits beyond which human activity could lead to irreversible damage on the Earth’s system. It might come as a shock, but Climate Change is only 1 of 9 planetary boundaries!
Other boundaries cover freshwater change, biosphere integrity, ocean acidification etc. Each representing a natural process that regulates the stability and resilience of the Earth system. Unfortunately, the latest information that we have from the Stockholm Resilience Centre (September ‘23) tells us that we have already crossed 6 planetary boundaries out of 9. Which gives us this rather depressing image:
Ok great, but what does that have to do with a doughnut?
Well, these planetary boundaries constitute the outer ring of our doughnut economy. That means that the economy must operate within those boundaries.
Inside the doughnut hole lies the social foundation, which represents the minimum standards of well-being that everyone on the planet should have access to, such as food, water, healthcare, education and a political voice. Sustainability nowadays is inseparable from social justice and the ability for everyone to live in decent conditions.
The doughnut economy is then this system that manages to meet the needs of all people, without overshooting the Earth’s ecological limits. It’s about finding that sweet spot where we have a thriving society within the safe and just space of the doughnut. Keep in mind that this “spot” can mean a lot of different things, take infinite shapes and is yet to be experimented.
Here is a representation of it (you can find more detailed ones on https://doughnuteconomics.org/)
Well seeing that we are well over 6 of the planetary boundaries, it seems clear that we are going to need to reduce our use of resources. New technologies and innovation can help in that process, but the fastest and surest way of getting back within those limits is to simply shrink the economy. Considering the urgency in which we find ourselves, we’re sorry to announce that some things will have to go. Although will we really miss Sonny Angels (yes, that is niche).
Indeed, once we cap what is available, then choices need to be made: disposable cups or half of all existing species? 1000 new T-shirt options per week or a living wage across the globe? I’ll let you debate.
Contrary to common misrepresentation this new concept is not trying to confine us and make us miserable or take away our happiness, like we hear a lot. Embracing the doughnut economy is simply redefining the rules of a board game so that the board doesn’t get destroyed, and nobody is excluded from playing. This new economy requires innovation and creativity across all sectors, which are both unlimited within the doughnut, and we think that’s pretty exciting.
The current economic system had made us believe that unlimited choices are a fundamental right. However, we can question this assumption, especially when these choices impair the freedoms and well-being of others, as well as the liveable conditions for all.
Overall, the doughnut economy offers a simple yet powerful framework for reimagining economics in a way that prioritizes both people and the planet.
