As health systems across the world are overwhelmed by the rapid spread of a deadly virus, the economic system which has left us all vulnerable to the virulent strain of Coronavirus sweeping exponentially across continents is, like many of the people infected by the disease, in intensive care fighting for its life.
However, unlike the thousands of people fighting for breath in overloaded intensive care units, the economic model that has plundered and polluted the planet, stripped back the state, enfeebled public services, and neglected community is not worthy of heroic efforts to preserve life.
There can not, must not be a return to ‘business as usual’ and the pursuit of short term profits and perpetuals prioritised in the shareholder economy.
Instead we must regenerate. We must find a new way to be. We must find a new way of living that “recognises that well-being depends on enabling every person to lead a life of dignity and opportunity, while safeguarding the integrity of Earth’s life-supporting systems,” as urged by Kate Raworth author of ‘Doughnut Economics: Seven Ways to Think like a 21st Century Economist”.
The titular Doughnut, Raworth’s new economic model of human well-being, is increasingly recognised as an important tool for guiding humanity through the 21st Century. Raworth’s Doughnut combines two concentric circles to depict the two boundaries – social and ecological – that encompass human well being. The inner boundary is the floor under which twelve internationally agreed dimensions of social well being, including hunger, ill health, illiteracy and energy poverty, must not fall. The outer boundary of the Doughnut is the ecological ceiling through which pressure on Earth’s life supporting systems, such as climate change, ocean acidification and biodiversity loss, must not break.
Raworth asserts: “Between the two boundaries lies the ecologically safe and socially just space in which all of humanity has the opportunity to thrive.”
In essence, we need to be the dough of the Doughnut. Raworth’s dough recipe has four key ingredients:
- recognising the dependence of human well-being on planetary health
- reducing deep inequalities that reflect social shortfalls and ecological overshoots caused by the current economic model
- a renewal of economic thinking and policymaking so that prioritisation of gross domestic product growth is replaced by an economic vision designed to be regenerative and distributive
- an understanding of the complex interdependence of human well-being and planetary health
Since Raworth first created her model of well-being in 2012 it has been widely applied in academia, progressive businesses, urban planning and civil society as a tool to think differently about sustainable development. Now Amsterdam is set to become the first city in the world to adopt the Doughnut as a model to guide decision making.
“The doughnut does not bring us the answers but is a way of looking at it so that we don’t keep on going in the same structures we used to,” explained Marieke Van Doorminck, Amsterdam’s Deputy Mayor, citing decisions made to deal with the city’s housing crisis that fill the socially just and ecologically safe space between the inner and outer rings of the Doughnut. Not only will more houses be built to address the issue but the city now also plans to introduce regulations to ensure builders use materials that are recycled and bio based.
The solutions to Amsterdam’s housing problems identified by using the Doughnut to look at things in a new way also encompass a new economic model that is increasingly recognised as an alternative to the throwaway consumer culture spawned from the economic system we have been chained to for the last forty years.
Circularity aims to eliminate waste and reduce pollution and carbon emissions through reusing, repairing, refurbishing and recycling resources. The circular economy, as this new model is also known, creates a closed-loop system in which “waste” from one product or process becomes “food” for another industrial process or a regenerative resource for nature. Amsterdam’s new housing regulations will use the principle of the circular economy to build houses that inhabit the Doughnut’s safe space.
Transition to a circular economy is also underway in Scotland where the model is recognised as an imperative to achieving Scotland’s net zero emissions target by 2045. Introducing proposed legislation in the Circular Economy Bill, Roseanna Cunningham, Cabinet Secretary for Climate Change and Land Reform, said: “An estimated 80% of our global climate emissions are currently linked to the production, consumption and waste of products and resources. For our journey towards becoming a net-zero society to be successful, it must involve a fundamental re-think about how we use and reuse materials.”
In addition to environmental benefits Ms Cunningham expects a thriving circular economy to present “enormous economic and industrial opportunities” by improving productivity, opening up new markets, providing employment opportunities and lowering the cost of the goods we need.
Whilst Scotland is committed to developing an economic model that lives in the safe ecological space under the outer ring of the Doughnut, another small nation on the other side of the world has committed to a different economic perspective that aims to help all its citizens live in the space above the Doughnut’s socially just inner ring.
Last year, New Zealand became the first country in the world to deliver a ‘Wellbeing Budget’. Spending decisions were informed by a Living Standards Framework (LSF) developed by the New Zealand Treasury to provide a perspective on what matters for New Zealanders’ well-being, now and into the future. Based on the principle that gauging the long-term impact of policies on the quality of people’s lives is better than focusing on short-term output measures, the budget set five priorities: addressing mental health issues, child well-being, supporting indigenous peoples aspirations, encouraging productivity and transitioning to a sustainable economy.
“We’re embedding that notion of making decisions that aren’t just about growth for growth’s sake, but how are our people faring?” Jacinda Ardern, Prime Minister of New Zealand, said. “How is their overall well-being and their mental health? How is our environment doing? These are the measures that will give us a true measure of our success.”
The questions asked by Ardern are essentially the same as those Raworth asks. And the models being used in New Zealand and Amsterdam to provide a fresh perspective for decision making are similar – the twelve domains used in New Zealand’s LSF map closely to the twelve dimensions which make up the social foundation of Raworth’s Doughnut.
It should then be no surprise the solutions also converge. Building Regulations in Amsterdam, Circular Economy in Scotland and Economic Transformation in New Zealand’s all recognise the need to do things differently, to live in a way that prioritises people and planet ahead of profit and perpetual growth. Together they provide a vision of how we can be in the future, how we can develop a thriving economy that recognises well being and planetary health.
The way we live has brought us to a second global crisis in little over a decade. Last time, following the financial crisis in 2008, banks were bailed out and the stakeholder model revived. Since then ‘big business as usual’ has fought to maximise profit at the expense of the well-being of people and the health of the planet.
Once again it is in a state of collapse, fighting for survival, dependent on the state and underpaid, overworked key workers for life support. This time though the medical order we write must be ‘Do Not Resuscitate’.