Doughnut Economy
Imagine a doughnut — yes, the kind you might eat. But instead of sugar and frosting, this doughnut represents a vision for how humanity can live well on Earth — without destroying it.
The Doughnut Economy is a new way of thinking about economics that balances two critical goals:
Ensuring every person has the resources they need to live a good life.
Making sure we don’t harm the planet while doing so.
The Two Circles of the Doughnut
The Inner Ring — The Social Foundation
This is the minimum every human being needs to live a life of dignity:
Food
Water
Healthcare
Education
Income
Housing
Equality
Political voice
Energy
Gender equity
Peace and justice
If people fall below this inner ring, they are living in poverty or deprivation.
The Outer Ring — The Ecological Ceiling
This is the limit of what Earth can handle without breaking:
Climate change
Air pollution
Ocean acidification
Chemical pollution
Biodiversity loss
Land conversion (e.g., deforestation)
Freshwater use
Nitrogen & phosphorus loading (from farming)
Ozone layer depletion
If we go beyond this outer ring, we damage Earth’s life-support systems.
The Doughnut = The Safe and Just Space for Humanity
The space between the inner and outer rings is where we want to be. This is the “safe and just space”:
Everyone has what they need to thrive.
The planet stays stable and healthy.
In this space, people and the planet can thrive together. This is the heart of Doughnut Economics.
Why Do We Need a New Economic Model?
Traditional economics — what most governments follow — focuses on growth:
More production
More consumption
More GDP
But this comes at a cost:
Some people are still left behind (poverty, hunger).
The planet is suffering (climate change, pollution, extinction).
We’re living in a world where:
Billions lack essentials.
We’ve already crossed many ecological boundaries.
The Doughnut Model says: Enough is enough. We need an economy that measures success differently — not just by money, but by well-being and sustainability.
Difference of principles between traditional Neoclassical economics and Doughnut economics
Principles of Doughnut Economics (by Kate Raworth)
Change the Goal: From endless growth to a thriving balance.
See the Big Picture: Economy is part of society, which is part of nature.
Nurture Human Nature: People are cooperative, creative — not just self-interested.
Get Savvy with Systems: Everything is interconnected.
Design to Distribute: Share wealth and opportunity fairly.
Create to Regenerate: Don’t just use — replenish and heal.
Be Agnostic about Growth: Growth can help or hurt — focus on well-being, not numbers.
The Doughnut Economy is a radical but simple idea: "Let’s build a world where everyone has what they need, without taking more than the Earth can give." It invites us to reimagine progress, redefine prosperity, and reclaim balance between people and the planet. It’s not about less — it’s about better.
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