In 2018, Oxford Economist Kate Raworth introduced the world to a different sort of doughnut. This doughnut is a visual representation of a sustainable economic system that balances the needs of people and the planet. The inner ring represents the social foundation, including basic needs such as clean water, housing, and education. If these needs are not met, we fall into the centre hole. The outer ring represents the ecological ceiling, outlining the planetary boundaries we should not exceed. Overshoot that, and we get climate change, biodiversity loss, and pollution. Take 15 minutes and watch Raworth’s awesome TED Talk, then let’s explore how to bring doughnut economics to our communities.
Readers of this website know that I love using unusual examples from everyday life and pop culture, such as shipping containers or John Wick, to emphasize critical human competencies like collaboration or novel business models like cooperativism. This is sort of the same thing, but rather than striving for metaphorical connections between sprinkles, glazes, and affordable housing our bike lanes, I will emphasize how Raworth’s model uses a circle, or doughnut, to underscore how the Earth’s limited carrying capacity is mismatched with our outdated growth-focused economy.
Raworth argues that our traditional economic model has failed us, causing harm to both people and the planet. Instead, we need to shift towards a regenerative and distributive economy, one that meets the basic needs of people while staying within the ecological limits of the planet. This involves creating a circular economy, using renewable energy, designing for the future, and redistributing wealth and resources more fairly.
One concrete example of this in action is the city of Amsterdam, which has embraced the circular economy by implementing the doughnut model as a transformational tool. This involves mapping out the city’s current social and ecological situation and working towards a sustainable future that benefits all residents. By prioritizing sustainable transportation, affordable housing, and green spaces, Amsterdam is creating a more just and equitable city for everyone.
Nanaimo is the first Canadian city (joining Amsterdam, Brussels, Berlin, Melbourne, and Sydney) to adopt the Doughnut Economics framework to guide all city initiatives in order to build a thriving community that is environmentally, socially, and economically sustainable.
Overall, the Doughnut Economic Model offers a compelling vision for a more sustainable and equitable future. By shifting our economic priorities and striving for a regenerative and distributive economy, we can create a world that works for everyone.