By Kate Raworth
We need to rethink economics to meet the challenges of the twenty-first century. The Doughnut is a model that might just put us on the right path. It shows us how we can build economies that serve our social needs without overtaxing the planet’s limited resources.
If we manage to get inside the Doughnut’s safe space, we’ll be well on the way toward a world in which both humanity and nature won’t just survive, but thrive.
Our economy isn’t a closed market system.
The first step to actually turning our economy into a circle is focusing on reusability.
Whether you’ve never studied economics or consider yourself a member of the school of rational thought, here’s a new, useful model you can understand in just a few minutes!
Think globally, act locally.
Reforming something as big and complex as the global economy is a daunting task. But small changes can make a difference too. You can help make the world a better place by buying sustainable coffee or choosing an ethical bank.
The Doughnut model can help us maintain our social foundation without breaking through our planet’s ecological ceiling.
To account for the missing factors in classic economic theories, Kate proposes a model she calls ‘the Doughnut of social and planetary boundaries.’ It looks like this:
Doughnut Economics Summary Doughnut Model