Doughnut Economics by Kate Raworth

Last updated: Jul 15, 2023

Summary of Doughnut Economics by Kate Raworth

Doughnut Economics by Kate Raworth is a groundbreaking book that challenges traditional economic thinking and offers a new framework for creating a sustainable and equitable future. Raworth argues that the current economic model, which focuses solely on GDP growth, is not only failing to address pressing global issues such as inequality and environmental degradation but is also based on outdated assumptions.

The book introduces the concept of the "doughnut," which represents a safe and just space for humanity to thrive. The inner ring of the doughnut represents the social foundation, which includes basic human needs such as food, water, healthcare, and education. The outer ring represents the ecological ceiling, which represents the planetary boundaries beyond which we risk irreversible environmental damage.

Raworth proposes a new economic model that aims to ensure that no one falls short on life's essentials while also respecting the boundaries of the planet. She outlines seven key principles for this new model:

Change the goal: Instead of focusing solely on GDP growth, the goal should be to meet the needs of all within the means of the planet.
See the big picture: Economics should be viewed as a complex system embedded within society and the environment.
Nurture human nature: Recognize that humans are social beings with a range of needs beyond material wealth.
Get savvy with systems: Understand the interconnectedness of economic, social, and environmental systems.
Design to distribute: Create an economic system that promotes fair distribution of resources and wealth.
Create to regenerate: Shift from a linear "take-make-dispose" model to a circular economy that regenerates resources.
Be agnostic about growth: Focus on improving well-being rather than pursuing endless growth.

Raworth also explores various policy and practice changes that can help implement this new economic model. She discusses the importance of rethinking taxation, redefining success beyond GDP, and transforming the role of business in society. She also emphasizes the need for a new narrative that challenges the prevailing economic mindset and inspires collective action.

In conclusion, Doughnut Economics presents a compelling vision for a more sustainable and equitable future. By reimagining the goals and principles of economics, Raworth offers a roadmap for transforming our current economic system and creating a world where everyone can thrive within the boundaries of our planet.

1. The Doughnut Model

The central concept of Doughnut Economics is the doughnut model, which presents a visual representation of the environmental and social boundaries within which humanity should strive to operate. The outer ring of the doughnut represents the ecological ceiling, which represents the limits of the planet's resources and the boundaries of what the Earth can sustainably provide. The inner ring represents the social foundation, which represents the minimum standards of well-being that every person should have access to. The goal is to ensure that humanity operates within the doughnut, where everyone's needs are met without exceeding the planet's limits.

This model provides a holistic framework for understanding and addressing the interconnected challenges of poverty, inequality, and environmental degradation. By focusing on both social and ecological dimensions, it encourages policymakers and economists to consider the long-term consequences of their decisions and to prioritize the well-being of both people and the planet.

2. Redefining Economic Success

Doughnut Economics challenges the traditional notion of economic success, which is often measured solely by GDP growth. Instead, it proposes a new set of metrics that prioritize well-being and sustainability. These metrics include indicators such as access to healthcare, education, and clean water, as well as measures of ecological health and resource use.

By broadening the definition of economic success, Doughnut Economics encourages policymakers to consider the well-being of all citizens and the long-term health of the planet. This shift in perspective can lead to more equitable and sustainable economic policies that prioritize the needs of people and the environment over short-term profit.

3. Regenerative and Distributive Economies

Doughnut Economics advocates for the transition from a degenerative economy, which depletes natural resources and exacerbates inequality, to a regenerative economy that restores and replenishes resources while promoting social well-being. This shift requires rethinking the way we produce and consume goods and services, as well as redesigning economic systems to prioritize sustainability and equity.

Furthermore, Doughnut Economics emphasizes the importance of distributive economies, which aim to reduce inequality and ensure that the benefits of economic growth are shared by all. This can be achieved through progressive taxation, fair wages, and social safety nets that provide a basic level of support for all citizens.

4. The Power of Networks

Doughnut Economics recognizes the power of networks and the importance of collaboration in addressing complex challenges. It highlights the need for diverse stakeholders, including governments, businesses, communities, and individuals, to work together to create systemic change.

By fostering collaboration and collective action, Doughnut Economics offers a pathway towards transformative change that can address the interconnected issues of poverty, inequality, and environmental degradation. It encourages individuals and organizations to connect, share knowledge, and work towards common goals for the benefit of all.

5. Shifting from Growth to Thriving

Doughnut Economics challenges the prevailing focus on economic growth as the primary driver of progress. Instead, it advocates for a shift towards a thriving economy that prioritizes well-being, resilience, and sustainability.

This shift requires redefining success beyond GDP growth and embracing alternative indicators that capture the quality of life, social cohesion, and environmental health. By prioritizing well-being over growth, Doughnut Economics offers a new vision for a more sustainable and equitable future.

6. Circular Economy and Resource Efficiency

Doughnut Economics emphasizes the importance of transitioning to a circular economy, where resources are used efficiently and waste is minimized. This involves designing products and systems that are durable, repairable, and recyclable, as well as promoting sharing and collaborative consumption.

By embracing the principles of a circular economy, Doughnut Economics offers a pathway towards reducing resource depletion, minimizing waste, and promoting sustainable consumption and production patterns. This shift can contribute to both environmental sustainability and economic resilience.

7. Localizing Economies

Doughnut Economics highlights the benefits of localizing economies, where communities prioritize local production, consumption, and decision-making. By reducing dependence on global supply chains and promoting local self-sufficiency, communities can enhance resilience, reduce environmental impact, and foster social cohesion.

Localizing economies also provide opportunities for community empowerment, entrepreneurship, and innovation. By supporting local businesses and investing in local infrastructure, communities can create thriving and resilient economies that prioritize the well-being of all citizens.

8. Education and Empowerment

Doughnut Economics recognizes the importance of education and empowerment in creating a more sustainable and equitable future. It emphasizes the need for education systems that foster critical thinking, systems literacy, and a deep understanding of the interconnected challenges we face.

By empowering individuals with knowledge and skills, Doughnut Economics encourages active citizenship and collective action. It recognizes that transformative change requires informed and engaged individuals who can challenge the status quo, advocate for change, and contribute to building a more sustainable and equitable world.