Doughnut Economics

The only positive aspect of fast food is this economic model derived from the shape of one such unhealthy yet relishing dessert, a doughnut. By now, we have been made well aware of the vast impact of our actions on the environment as a rapidly developing, anthropocentric society. The world has accommodated and morphed to suit the convenience of the human race for hundreds of years. From the beginning of civilization to the discovery of revolutionising concepts such as the internet, it has adjusted and thrived. However, it is now evident that there is a hindrance to the balance of our global ecosystem, one which might lead to the gradual end of human life.

“The world has enough for every man’s need but not for every man’s greed.” -Mahatma Gandhi

The aforementioned quote highlights the fact that greed brings about consequences in our surroundings and that there exists a state of equilibrium where resources are adequate and every individual prospers.

The adjoining figure is an ecocentric alternative to the diagram of the conventional economic model rep

resenting the circular flow of income. It was developed by Oxford economist Kate Raworth and is known as the Doughnut Economic Model. This model aims to satisfy the basic needs and amenities for all while maintaining a healthy planetary environment.

The green circle, bound by the two dark green rings, represents an ideal system, where welfare and justice prevail along with a sustainably progressing economy. All of humanity is well-fed, clothed, educated, socially accepted, has a political voice, steady income, and access to basic utilities, healthcare and housing- without having to compromise on the earth’s natural ecosystems. The central area (doughnut hole), constitutes the large section of the society who are devoid of these minimal living standards.

The ecological ceiling marks the maximum operating point for humans, without exceeding the nine planetary boundaries. These nine boundaries define the extent to which we can continue economic activities without causing harm to the planet. By 2015, we had crossed 4 of the 9 boundaries-- climate change, land conversion (construction, deforestation etc.), biodiversity loss and biochemical loading.

This model aims to uplift the downtrodden from the doughnut hole and onto the green ring, the circumscribed economy.

This methodology, at first, may seem far-fetched but small measures can pave the way to comprehensive well-being.

Amsterdam, a city well known for its ambitious environmental goals, has adopted this model as part of its post-pandemic recovery plan. 20% of the people in Amsterdam cannot pay basic bills after affording rent. To tackle this housing challenge, the city plans on carrying out extensive construction to bring down rent prices while using mindful techniques and bio-based material (like wood) to reduce carbon emission and recycle more.

Similarly, cities like Portland and Philadelphia have also taken significant steps to adopt this economic model and thereby set examples for cities that may choose to adopt it in the future.

Essentially, the ultimate aim is to satisfy everyone’s core needs within the means of the planet and recover the lost balance.