Can Doughnut Economics Be Implemented Into the Mainstream Approach to Economics

Executive summary

Dr. Kate Raworth’s transdisciplinary model, which reframes economic paradigms, is used in the research to examine Doughnut Economics (D.E.) in the Nevada context. With its roots in the Sustainable Development Goals (S.D.G.s), D.E. seeks to balance ecological constraints with social demands. The research examines how institutional fragmentation affects decision-making when looking at urban challenges. Utilizing twelve social and nine environmental indicators, the case study of Nevada serves as an example of ecological overshoots and deficiencies. A comprehensive understanding of Nevada’s socio-ecological landscape is provided by the interrelationship matrix and D.E. model that are constructed using this unique methodology.

Interestingly, relationships within the food indicator show possible ecological trade-offs that need to be carefully managed. Contributing to interdisciplinary research, the framework promotes integrated governance within frameworks of the circular economy. It is essential for mobilizing stakeholders to support policies that respect environmental limits, socioeconomic development, and public health. Strategic, long-term advancement is made possible by this dynamic tool, which enhances conventional decision-making models. “Can Doughnut Economics be implemented into the mainstream approach to economics?” is the central question posed in the executive summary, which summarizes the main findings of the study. Top of Form

The idea of Doughnut Economics (D.E.) presents itself as a revolutionary paradigm in the dynamic field of economic thought, calling into question the status quo and upending conventional wisdom. The main focus of my research is whether or not Doughnut Economics can be incorporated into the mainstream of economic discourse. This endeavor is driven by an innate curiosity regarding the revolutionary possibilities of D.E. and a dedication to elucidating its relevance to the broader economic structure (Capmourteres et al. 2019, 410). The traditional school of economics has frequently come under fire for its narrow focus on unrestricted growth, frequently at the price of environmental sustainability and social well-being. Dr. Kate Raworth’s D.E. model offers an alternative perspective, seeing economic systems functioning inside the confines of ecological ceilings and social bases.

The urgent need for this investigation stems from the severe global issues of resource depletion, social inequality, and climate change, which call for a revision of our economic ideologies. This research is, in my opinion, an attempt to gain a more comprehensive understanding of economics—one that looks beyond GDP growth and adopts a paradigm that puts the needs of people and the environment first (Coscieme et al. 2019, 43). Understanding the revolutionary potential of D.E. in guiding economic policies toward sustainability and inclusivity is a journey of one’s own. As a proponent of sustainable development, I want to learn more about whether D.E. can become more than just a theoretical framework and find a place in the mainstream of economic discourse (Demir, 2020). This study’s significance goes beyond academic curiosity because it reflects a more significant societal shift.

The understanding of D.E.’s practical implications, possible implementation challenges, and transformative potential for policy-making that I hope to derive from this investigation is nuanced. I hope to add to the continuing discussion on shifting economic paradigms by critically analyzing the fundamental ideas of D.E., how it aligns with the Sustainable Development Goals (S.D.G.s), and how it is applied in the real world. In the talks that follow, I will go into the fundamentals of D.E., assess how well it aligns with conventional economic theories, and look at situations where it has been accepted or rejected (Demir, 2020). The investigation will work through the complexities of putting D.E. into practice while considering the changes that need to be made to governance, policy, and public opinion. Through this investigation, I hope to shed light on the way to a future economy that is more equitable and regenerative, where the D.E. framework is ingrained in the mainstream economic philosophy.

Figure 1: The Doughnut of social and planetary boundaries

Source: Oxfam. The 11 dimensions of the social foundation are illustrative and are based on governments’ priorities for Rio+20. The nine dimensions of the environmental ceiling are based on the planetary boundaries set out by Rockström et al. (2009b)

Literature Review

Integrating Doughnut Economics into the Mainstream Approach

With its comprehensive approach that aims to strike a balance between social needs and environmental sustainability, the notion of Doughnut Economics (D.E.) has become a compelling framework that challenges traditional economic paradigms. For one to catch up with ideas, advantages, concepts, difficulties, and practical applications related to Doughnut Economics, this literature review attempts to examine the field’s history and present condition methodically.

Definition and Development of Doughnut Economics

Dr. Kate Raworth’s concept of Doughnut Economics (D.E.) presents a theoretical economic framework represented by the figurative “doughnut.” In this portrayal, D.E. attempts to achieve a complex balance by juggling the demands of both upholding ecological ceilings and social norms (Fanning. 2022). Doughnut Economics (D.E.) emerged from a critical analysis of conventional economic models that place a premium on perpetual growth while frequently ignoring adverse effects on the environment and widening social divides. The flaws in this conventional economic theory gave rise to Dr. Kate Raworth’s innovation in D.E. DE, which is an advocate for a fundamental shift in our economic paradigm away from the singular focus on unceasing growth (Gross. 2022). As an alternative, it encourages a more inclusive and sustainable strategy that addresses environmental issues and aims for social equity. This change contradicts the traditional economic perspectives’ limited emphasis on constant growth.

Doughnut economics enhances a transition way that enables observations of prosperity that is a requirement to enhance basic social needs while staying within the ecological boundaries essential for planetary health. It is achieved by visualizing economic systems within the Doughnut’s contours (Hausdorf et al., 2023, 33). This new economic narrative emerges in reaction to the limitations of GDP-centric models that overlook the broader ramifications of unchecked growth. As DE develops, it becomes a rallying cry for an equitable and regenerative economic narrative that highlights the interdependence of social and environmental wellbeing. Motivated by a dedication to guiding economies away from the dangers of unbridled consumption, D.E. plots a path toward equilibrium and resilience.

Critical Principles of Doughnut Economics

Doughnut Economics (D.E.) is based on fundamental principles that are intended to create an economy that meets everyone’s needs while staying within the critical limits of planetary boundaries. The creative representation of the Doughnut is central to these ideas. The inner ring represents critical social dimensions, such as food, health, and education, while the outer ring represents the ecological boundaries that encompass issues like climate change and biodiversity loss (Davíðsdóttir, B. and Malinauskaite. 2023, p.101). D.E.’s fundamental principles highlight the interdependence of social and ecological systems and promote a balanced approach. D.E. aims to create an economic paradigm that goes beyond the constraints of conventional models that are exclusively focused on economic growth by carefully tying these dimensions together.

Underscoring the importance of meeting fundamental human needs, promoting inclusive education, and guaranteeing everyone’s health and well-being is the inner ring’s depiction of social foundations. The outer ring emphasizes the need to recognize and honor the ecological boundaries that our planet can support at the same time. D.E.’s core principles are embodied in this two-ring structure, which urges a change from the limited goal of growth to a comprehensive viewpoint that balances environmental sustainability and human prosperity. Numerous advantages arise from putting these crucial ideas into practice. It promotes a radical course that preserves people’s health while simultaneously fostering a solid and healthy bond between people and the environment.

Table 1

Concepts and Definitions

Table 1 offers definitions and terms that are necessary to understand the fundamental ideas of Doughnut Economics (D.E.).

Benefits of Implementing DE in the Mainstream Approach

When Doughnut Economics (D.E.) is incorporated into the mainstream, it signals a paradigm shift away from GDP-centric models and toward comprehensive well-being metrics. Numerous advantages result from this change, which also fundamentally modifies how we track and evaluate societal advancement (Luukkanen et al. 2021). Promoting a more equitable allocation of resources is one of the main benefits of adopting D.E. principles. Conventional economic models frequently highlight GDP growth without addressing resource distribution disparities. D.E., on the other hand, prioritizes social foundations and makes sure that everyone’s basic needs are satisfied. By emphasizing equity, we can effectively reduce societal disparities and advance a more equitable and inclusive economic system. One other significant advantage of D.E. that stands out is its environmental sustainability.

Depletion of resources and ecological degradation are frequent outcomes of the traditional pursuit of unrelenting economic growth. Sustainable practices are made possible by D.E.’s emphasis on respecting planetary boundaries and realizing that resources are finite. By placing a high priority on ecological well-being, D.E. combines environmental stewardship with economic development, providing a model for a robust and regenerative human-planet relationship (Rashid. 2020). D.E. also focuses attention on qualitative development as opposed to a quantitative fixation with growth. By changing the focus of the discourse from purely economic growth to holistic well-being, the strategy pushes societies to give health, education, and social cohesion top priority. This shift can promote a more contented and significant life, adding to improved social well-being that goes beyond financial metrics.

Challenges of Implementing DE in the Mainstream Approach

Doughnut Economics (D.E.) faces significant obstacles in getting accepted into the mainstream of economic discourse. These obstacles include vested interests’ opposition, deeply ingrained conventional economic ideologies, and the need for broad systemic changes. Even with the transformative potential of D.E., overcoming these obstacles is essential to its successful application (Mukelabai et al. 2022, 330). Traditional economic thought is deeply ingrained, which is one of the main obstacles. G.D.P. growth-centric economic models have dominated policy discussions and decision-making for decades. It takes a paradigmatic mental shift to move away from this established paradigm, and that requires overcoming opposition from people who have a substantial stake in the current economic narrative. It is tough to persuade companies, governments, and the general public to adopt a radically different strategy.

Also, a significant barrier is the opposition from special interests. Changes that could upset the status quo may be resisted by organizations and sectors that stand to gain from it. There is a possibility that sectors that have historically profited from ecological degradation and social inequality will oppose D.E.’s focus on environmental sustainability and sustainability. The need for systemic adjustments increases complications. D.E. questions the current emphasis on unchecked growth and promotes a comprehensive reassessment of economic goals. Coordinated efforts across multiple sectors are needed to implement D.E. principles, which call for fundamental economic system restructuring in addition to policy changes (Wahlund and Hansen. 2022, p.178).

Regarding the decentralization of narrative in D.E., critics also raise concerns. Its promotion of inclusivity is praised, but it also calls into question possible environmental justice concerns. It is crucial to thoroughly analyze the social ramifications of D.E.’s decentralized approach because the absence of a centralized and controlled narrative may unintentionally result in decision-making imbalances.

Applications and Case Studies

Several case studies vividly illustrate how Doughnut Economics (D.E.) principles are applied in practice, providing insightful information about the tactics, obstacles, and current conditions of programs attempting to incorporate this novel framework. One notable example is Amsterdam, where D.E. functions as a comprehensive framework of policies directing the growth of the city (Khmara and Kronenberg 2023, 259). The city’s development is in line with the ideas contained in the doughnut model thanks to Amsterdam’s dedication to D.E., which signifies a paradigm change in urban planning. The city wants to accomplish two things: it wants to ensure environmental sustainability and promote social justice. By embracing DE, Amsterdam hopes to create an urban environment that works within ecological bounds while simultaneously meeting the needs of its citizens.

Fig 2. Where the five cities are at in their Doughnut journey.

Analyzing this case study offers a sophisticated perspective of the difficulties in converting D.E. principles into workable policies. Restructuring long-standing practices and policies is difficult in cities because they are complex socioeconomic systems. The tactics that Amsterdam and similar organizations use show possible ways to get past these obstacles. Examining these programs’ current status also provides information about the viability and efficacy of D.E. in a variety of settings (Khmara and Kronenberg 2023, 259). Evaluating how D.E. affects social justice, environmental preservation, and general well-being provides essential information for improving and modifying the framework for broader application.

Other cities that have adopted D.E. as funded initiatives include Brussels and Melbourne, demonstrating the framework’s adaptability and versatility in a variety of urban settings. Every case study deepens our understanding of the intricate interactions that exist between D.E. principles and the complexities of urban development (Larsen. 2021).

Achieving Sustainable Development Goals (S.D.G.s) with D.E.

The Sustainable Development Goals (S.D.G.s) are elegantly aligned with Doughnut Economics (D.E.), a robust framework that provides a thorough road map for addressing and meeting global sustainability objectives. As a strategic tool to advance progress across multiple S.D.G.s, DE is positioned by its core principles, which emphasize the delicate balance between social foundations and ecological ceilings. D.E. directly contributes to several important S.D.G.s with its holistic approach (Huan et al. 2021, 14). First, DE promotes the objective of “No Poverty” by guaranteeing fair access to necessary resources while addressing social dimensions like food, health, and education. S.D.G.s pertaining to zero hunger, high-quality education, and overall health and well-being are directly aligned with the inner ring of D.E., which encompasses social indicators.

D.E.’s dedication to ecological boundaries coincides with the Sustainable Development Goals (S.D.G.s) that center on environmental sustainability. Notably, the S.D.G.s pertaining to climate action, life below water, life on land, and biodiversity conservation are greatly aided by the outer ring of D.E., which stands for ecological indicators (Rubio-Mozos et al. 2019). D.E. catalyzes multiple S.D.G.s by concurrently addressing the social and environmental dimensions. In order to achieve sustainable development without jeopardizing the welfare of present and future generations, an integrated approach is essential (Knickel et al. 2021, 512).

Opportunities for Further Implementation

The incorporation of Doughnut Economics (D.E.) principles into conventional methodologies presents auspicious prospects for cooperative ventures involving policymakers, corporations, and communities. D.E.’s paradigm shift has the potential to spur creative thinking and the adoption of circular economy principles. A noteworthy prospect is the possibility of revolutionary partnerships among various stakeholders (Turner and Wills, 2022). Together with businesses and communities, policymakers can develop strategies that put social well-being and ecological sustainability first. This cooperative strategy ensures a more thorough and inclusive decision-making process by fostering a shared responsibility for tackling complex challenges.

Circular economic practices can also be implemented thanks to the adoption of D.E. principles. Businesses can integrate D.E.’s regenerative model into their operations by rethinking resource utilization and reducing waste. Resource continuous use and reuse, or “circular economies,” fosters both economic resilience and environmental sustainability. D.E. also offers a chance to implement inclusive development techniques. D.E. promotes policies that benefit all societal sectors while upholding environmental limits by taking into account both the social base and the ecological ceiling at the same time (Wahlund and Hansen. 2022, p.178). This inclusiveness fosters sustainable development that does not leave anyone behind and increases the resilience of communities.

Recommendations for the Integration of Doughnut Economics into Mainstream Approaches

Educational Initiatives

Creating solid educational programs is essential to ensuring that future and current leaders, legislators, and economists are aware of the Doughnut Economics principles. This can be achieved by taking a multimodal approach that includes academic courses on Doughnut Economics, focused training sessions, and immersive workshops. People can obtain a deep understanding of the ways in which economic decisions impact socio-ecological contexts by providing a variety of learning platforms. By ensuring that future leaders have the skills necessary to navigate economic landscapes with an emphasis on sustainability and societal well-being, these initiatives serve to both educate and instill a sense of responsibility.

Policy Alignment

Promoting policy conformity to the principles of Doughnut Economics is essential for guiding governments in the direction of sustainability. To ensure that economic policies promote prosperity while maintaining sustainability, this calls for incorporating social and ecological indicators into decision-making processes. Governments should consider the Doughnut Economics model as a fundamental framework for guiding policy initiatives. In this way, they can systematically weave environmental health and societal well-being into the very fabric of governance, promoting a peaceful coexistence of economic growth and the preservation of essential planetary resources.

Public Awareness Campaigns

Launching extensive public awareness campaigns is essential to educating the broader public about Doughnut Economics. Gaining the public’s support is essential to influencing decision-makers in business and politics to adopt more environmentally friendly practices. Public engagement can be accomplished in a number of ways, such as through well-thought-out media campaigns, neighborhood gatherings, and the tactical use of Internet platforms. A groundswell of knowledgeable citizens can support and aid in the general application of Doughnut Economics by utilizing the power of public awareness, which will ignite a movement towards a more just and sustainable economic paradigm.

Government Incentives

Governments must encourage companies to implement Doughnut Economics. Governments may actively encourage a transition to sustainable practices by providing observable advantages, like tax breaks or grants, to institutions dedicated to these ideals. The idea that financial success can be linked to beneficial contributions to the environment and the larger community is also reinforced, in addition to pushing companies to match their operations with social and environmental goals. Govt incentives are thus a tactical tool for encouraging enterprises and promoting a smooth transition of Doughnut Economics into traditional economic processes.

Corporate Responsibility

Embracing Doughnut Economics into business strategies requires a strong emphasis on corporate responsibility. Enterprises ought to be motivated to adopt a comprehensive strategy that entails evaluating and openly disclosing their effects on society and the environment. Two essential aspects of this duty are embracing sustainable supply chain management and implementing circular economy methods. Setting an example and laying the groundwork for a more ethical business ecosystem, industry leaders, in particular, can have a significant impact on systemic change. Inspiring a more comprehensive range of businesses to prioritize Doughnut Economics principles for long-term societal and environmental well-being is possible when corporate responsibility is promoted in this way.

Conclusion

In conclusion, this essay’s examination of Doughnut Economics (D.E.) has revealed a revolutionary framework that contradicts traditional economic theories. D.E., as defined by Dr. Kate Raworth, sees an economy that functions inside the contours of a “doughnut,” signifying a finely balanced equilibrium between ecological ceilings and social bases. Reviewing the fundamental ideas of D.E. reveals its possible advantages, difficulties, practical applications, and alignment with the Sustainable Development Goals (S.D.G.s). The literature review emphasizes how D.E. has moved away from GDP-centric models and toward holistic well-being metrics. Qualitative development, sustainability of the environment, and more equitable resource distribution are all advantages. Problems still exist, though, such as the necessity for systemic changes and opposition from ingrained conventional economic theory. Real-world examples, like Amsterdam’s adoption of D.E. as a framework for policy, offer essential insights into tactics and obstacles encountered.

Because DE is in line with the SDGs, it highlights its function as a guide for accomplishing global sustainability goals. Goals like ending poverty, ending hunger, promoting good health, and addressing climate change are made possible by their simultaneous focus on social and environmental aspects. Promoting cooperation between companies, communities, and policymakers presents opportunities for additional implementation, which could result in creative solutions, circular economic models, and inclusive development plans. The implications are significant for us as aspiring managers and leaders. A route to a more resilient and sustainable future is provided by embracing D.E. principles.

It demands a mental shift from an exclusive concentration on economic growth to a more thorough examination of environmental health and societal well-being. The essay emphasizes how crucial it is for corporate responsibility, public awareness, policy alignment, education, and government incentives to promote the adoption of D.E. principles. It is clear from thinking about this work that economic thought needs to undergo a paradigm change. As the leaders of the future, we have a responsibility to think about societal and ecological impact in addition to traditional profit-centric thinking. It becomes clear that doughnut economics is not just a theoretical concept but also a valuable manual for forming laws, corporate procedures, and individual leadership philosophies that support a prosperous, sustainable future.

Reference

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