KATE RAWORTH: Doughnut economics as the antidote to “death by growth”
May 21, 2024
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Kate Raworth, a renegade economist and professor at Oxford, introduces her groundbreaking 'doughnut economics' model that harmonizes human flourishing with planetary boundaries. She critiques traditional growth-focused economics and discusses how this outdated framework fails to address real-world consequences. The chat explores the importance of systems thinking and highlights transformative policies that promote sustainability and social equity. Kate also emphasizes community initiatives that inspire sustainable living, urging a paradigm shift from indulgent private wealth to shared public resources.
Donut economics advocates for a balance between meeting individual needs and respecting planetary boundaries to ensure sustainability.
The traditional growth-centric economic models are flawed, as they overlook environmental health and do not assure equitable prosperity.
Cities globally are adopting donut economics to prioritize well-being over GDP, highlighting the impact of grassroots movements on sustainable practices.
Deep dives
The Necessity of Basic Resources
Access to fundamental resources such as health, education, food, water, and housing is essential for everyone. The concept of donut economics presents a model aiming to ensure that no individual is left deprived of these essentials while also respecting planetary limits. This model, illustrated through a donut shape, emphasizes the balance between meeting human needs and staying within the Earth's nine planetary boundaries, which include critical issues like climate change and biodiversity loss. By highlighting this balance, the donut model encourages societies to prioritize sustainability and equitable resource distribution.
Critique of Current Economic Models
Modern economic theories have often relied on the idea of continuous growth, assuming that an increasing economy inherently leads to greater prosperity for all. However, this growth-centric narrative is challenged by evidence showing that it is detrimental to the planet's health and does not guarantee equitable benefits for society. The podcast discusses how prevailing economic education focuses on supply and demand and promotes a narrow, rational economic man perspective that overlooks critical social and environmental issues. This approach often frames serious global problems as mere externalities, which hinders meaningful discussion and action.
Introducing Donut Economics
Donut economics, developed by economist Kate Raworth, advocates for a new economic paradigm that allows for human flourishing without relying on perpetual growth. The model is based on the premise that economies should work within the ecological limits of the planet while ensuring everyone's basic needs are met. Visualized as a donut, the model serves to highlight the ideal space where society can thrive without over-exploiting natural resources. This innovative approach has gained attention from various global organizations, indicating a shift towards recognizing the need for sustainable economic practices.
The Importance of Systems Thinking
Systems thinking is a critical perspective needed to address complex global challenges like climate change and resource scarcity. It encourages understanding that various elements within a system are interconnected, which can lead to reinforcing or balancing feedback loops. This understanding helps clarify how human actions impact environmental systems and highlights the need for comprehensive solutions that focus on long-term sustainability. By fostering a systems-thinking approach, individuals and communities can better adapt to the evolving realities of our interdependent world.
Communities Leading Change
Cities and local governments are increasingly adopting donut economics as a guiding framework to promote sustainability and equity. These communities are finding alternative ways to evaluate their growth by focusing on well-being rather than GDP alone, moving towards regenerative practices that support both human and ecological health. Initiatives in cities such as Amsterdam and Melbourne demonstrate that local action can create significant positive impacts, showcasing how collective efforts can inspire broader systemic change. The podcast emphasizes the power of grassroots movements to mobilize individuals and drive forward the principles of donut economics in everyday life.
Kate Raworth (“renegade” economist; inventor of the “doughnut” systems model) has one of the most dynamic and controversial theories for “fixing” or adjusting to the planetary mess we’re in. Back in 2017 she released her book Doughnut Economics: Seven Ways to Think Like a 21st Century Economist and it became a cult read – the Pope, Extinction Rebellion and the UN General Assembly praise it. It designs an economy that allows humans to flourish while ALSO not destroying the planet – existing within the planetary boundaries.
In this chat, Kate, an Oxford professor and Club of Rome member, and I talk about how the current economic model is fundamentally flawed (all those supply/demand and growth models have never been peer-reviewed!), how to debunk a Stephen Pinker disciple and how to balance the reality of looming (locked-in) collapse and living fully (the two are actually connected). Kate is a brilliant delight of a human – this chat is fun.
SHOW NOTES
Find visuals of a “rational economic man” and her doughnut head here
