Donut economy or donut economy: definition

What is called the donut economy the donut economy ? What does this concept cover? What is it used for?

The donut economy is a concept that defines a sustainable economic system that allows us to meet the needs of our societies without crossing planetary boundaries. The term comes from the work of English economist Kate Raworth, who proposed a graphical representation reminiscent of a “doughnut”, hence the name.

The Donut Economy: Why the Donut?

A donut. It is from this particular form that Keith Raworth proposes a new presentation of a hypothetical economic system that could simultaneously satisfy our needs without questioning the stability of global ecosystems.

The physical limitations of our world (artificialization, availability of fresh water, erosion of biodiversity, etc.) ecological ceiling that humanity should not exceed. Forms 12 basic needs under his feet social floor to human well-being including food, employment, energy, education.

This gap between the two, which later allowed for the creation of this famous doughnut, is a security area where humanity can fully develop within planetary boundaries. So the goal is to stay within that range.

Where does The Donut Economy

concept development The Donut Economy corresponds to the recent history of economic thought, to the middle of economic science and the environment. Although scholarly work since the Meadows report (1972) has noted the limitations of classical economic models based on growth, particularly environmental ones, a group of Swedish and Australian scientists published a seminal study in 2008 that more clearly identified these planetary limitations. it should not be exceeded, otherwise the biosphere and the development of living things would change a lot.

Thus, nine are identified: climate change, erosion of biodiversity, disruption of biogeochemical cycles of nitrogen and phosphorus, land use change, ocean acidification, global water use, depletion of the stratospheric ozone layer, introduction of new objects. the environment (chemical pollution) and the increase of aerosols in the atmosphere. It is this research that inspired Kate Raworth’s Donut Theory, which she developed around a question in her book of the same name: How can we meet our needs without crossing the boundaries of our ecosystems?

Kate Raworth borrows the concept of the commons from environmental thinkers: a healthy and free society is only possible if wealth and knowledge are pooled and equitably distributed in society. Something where economic growth exists does not work well.

See also: Why should the ecological transition be just and social?

For the economist, the Donut Theory allows us to think differently about the economy by truly considering the limits of the planet in both current and future economic models. Therefore, for Kate Raworth, it is a way to think about the economy that responds to social and environmental challenges.