Doughnut Economics: 21st Century Economics

Ethics and Responsibility

Best Practices

Sign up

Gary Wong
Consultant, Canada

Doughnut Economics: 21st Century Economics

Kate Raworth’s book "Doughnut Economics" is a wake-up call to transform our capitalist worldview obsessed with growth into a more balanced, sustainable perspective that allows both humans and our planet to thrive.
She lists 7 ways to start thinking like 21st century economists:

1. CHANGE THE GOAL: from GDP growth to the Doughnut.
For over half a century, economists have fixated on GDP as the first measure of economic progress, but GDP is a false goal waiting to be ousted. The 21st century calls for a far more ambitious and global economic goal: meeting the needs of all within the means of the planet. Draw that goal on the page and – odd though it sounds – it comes out looking like a doughnut. The challenge now is to create local to global economies that ensure that no one falls short on life’s essentials – from food and housing to healthcare and political voice – while safeguarding Earth’s life-giving systems, from a stable climate and fertile soils to healthy oceans and a protective ozone layer.


2. SEE THE BIG PICTURE: from self-contained market to embedded economy.
It’s time to write a new economic story fit for this century – one that sees the economy’s dependence upon society and the living world. This story must recognize the power of the market—so let’s embed it wisely; the partnership of the state—so let’s hold it to account; the core role of the household—so let’s value its contribution; and the creativity of the commons—so let’s unleash their potential.

3. NURTURE HUMAN NATURE: from rational economic man to social adaptable humans.
The character at the heart of 20th century economics—‘rational economic man’—presents a pitiful portrait of humanity: he stands alone, with money in his hand, a calculator in his head, ego in his heart, and nature at his feet. Worse, when we are told that he is like us, we actually start to become more like him, to the detriment of our communities and the planet. But human nature is far richer than this, as emerging sketches of our new self-portrait reveal: we are reciprocating, interdependent, approximating people deeply embedded within the living world. It’s time to put this new portrait of humanity at the heart of economic theory so that economics can start to nurture the best of human nature.

4. GET SAVVY WITH SYSTEMS: from mechanical equilibrium to dynamic complexity.
Economics has long suffered from physics envy: awed by the genius of Isaac Newton and his insights into the physical laws of motion, 19th century economists became fixated on discovering economic laws of motion. But these simply don’t exist: they are mere models, just like the theory of market equilibrium which blinded economists to the looming financial crash of 2008. That’s why 21st-century economists embrace complexity and evolutionary thinking instead. Putting dynamic thinking at the heart of economics opens up new insights for understanding the rise of the one percent and the boom and bust of financial markets. It’s time to stop searching for the economy’s elusive control levers (they don’t exist), and instead start stewarding the economy as an ever-evolving system.

5. DESIGN TO DISTRIBUTE: from ‘growth will even it up again’ to distributive by design.
In the 20th century economic theory whispered a powerful message when it comes to inequality: it has to get worse before it can get better, and growth will eventually even things up. But extreme inequality, as it turns out, is not an economic law or necessity: it is a design failure. Twenty-first century economists recognize that there are many ways to design economies to be far more distributive of value among those who help to generate it. And that means going beyond redistributing income to pre-distributing wealth, such as the wealth that lies in controlling land, enterprise, and the power to create money.

6. CREATE TO REGENERATE: from ‘growth will clean it up again’ to regenerative by design
Economic theory has long portrayed a clean environment as a luxury good, affordable only for the well-off—a view that says that pollution has to increase before it can decline, and (guess what), growth will eventually clean it up. But as with inequality there is no such economic law: environmental degradation is the result of degenerative industrial design. This century calls for economic thinking that unleashes the potential of regenerative design in order to create a circular, not linear, economy—and to restore ourselves as full participants in Earth’s cyclical processes of life.

7. BE AGNOSTIC ABOUT GROWTH: from growth-addicted to growth-agnostic.
Mainstream economics views endless GDP growth as a must, but nothing in nature grows forever, and the economic attempt to buck that trend is raising tough questions in high-income but low-growth countries. That’s because today we have economies that need to grow, whether or not they make us thrive. What we need are economies that make us thrive, whether or not they grow. That radical flip in perspective invites us to become agnostic about growth and to explore how our economies—which are currently financially, politically and socially addicted to growth—could learn to live with or without it.

Sources:
Raworth, Kate, "Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist", 2018, Chelsea Green Publishing.
Raworth, Kate, "Seven Ways to Transform 21st-Century Economics — and Economists", May 2017, evonomics.com.

  srinivas
Lecturer, India
 

Great Opportunity for Masters in Economics to Evolve

Nice opportunity for the masters out there to chan (...)

  Prasad Chundi
Consultant, India
 

Early Adopters of Doughnut Economies

It is a brilliant thought process. We can see that (...)

  Cockburn
Manager, United Kingdom
 

Doughnut Economics Has to Happen

Well put. I have said for years we shouldn't solel (...)

  Gary Wong
Consultant, Canada
 

Downloading Doughnut Graphic

A copy of the graphic can be viewed by clicking on (...)

  Gary Wong
Consultant, Canada
 

Change is Happening

@Cockburn: Here’s the rub. It took a band of unive (...)

  Mark Ianni
United States
 

Donut Economics

Socialist redistribution of wealth disguised as 21 (...)

  Jaap de Jonge
Editor, Netherlands
 

Please Explain your Point of View

@Mark Ianni: Mark, I don't see that this economic (...)

  Mark Ianni
United States
 

Donut Economics

@Jaap de Jonge: Of course you don't see socialism (...)

  Shawna-Lee Lawrence
Entrepreneur, Jamaica
 

Donut Economics

@Mark Ianni: There is an innate and purposeful dr (...)

Start a new forum topic

 

More on Ethics and Responsibility
Forum
Ethics and the Ego-ridden Individual
What are Accountancy Ethics?
Good Business Ethics Not Easy to be Noticed
Ethical Business Has a Long Time Horizon
When are Misdeed Committers Accepted as Advisors?
Good Example of Succeeding in CSR
Success Requires Responsibility
Integrity in Business: Definition and Issues
Organizational Justice
Consequentialist Theories in Business Ethics
Ethical Issues in Using Social Media Conversation Data for Business
Ethics in Public Administration
About 'De' (德), an Ancient Chinese Moral and Ethical Virtue
Ethical Issues in Human Resources Management
Ethics & Poor Environment
Ethics, Culture and Values
🔥Framework for Codes of Ethics for Accounting Professionals
Leadership and Integrity – Does your Management Have Integrity?
Loyalty and Ethics in Business
Personal Ethics and Responsibility Must Come First
Planned Obsolescence: Ethical or Not?
Shan Zhai and the Trickster
Ethics in Dealing with Employees in Family Businesses
Ethics Change According to Time, Place, Situation
Best Practices
To study the user's Ethics in using service through the Online Social Network Sites
Why People / Organizations Act Ethically?
Professional Management Code: The MBA Oath
Female managers more ethical
Emerging of Ethics After a Chaotic State
Ethics Oath for Public Servants?
Doughnut Economics: 21st Century Economics
The Difference between Ethics and Values
Ethics & Organisational Culture
Why are Business People / Managers not Ethical?
Superiors have Different Ethics
Buying a Problematic Business
Economics with Spiritualism and Ethical Businesses are Needed
Ethics is Universal, Flavor is Regional
Is the term 'Third World' Ethical?
The Need for a Global Business Ethics and a Global Police
Notify your students

Copy this into your study materials:

and add a hyperlink to:

Link to this discussion

Copy this HTML code to your web site:

Ethics and Responsibility



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2021 12manage - The Executive Fast Track. V15.8 - Last updated: 15-4-2021. All names ™ of their owners.