Kate Raworth
The Doughnut Economy is an innovative economic model developed by economist Kate Raworth, which redefines prosperity by balancing social wellbeing and ecological sustainability. Visualized as a doughnut-shaped diagram, it consists of two concentric circles: the inner circle represents the social foundation necessary for a good quality of life, while the outer circle signifies the ecological ceiling, beyond which Earth's systems risk destabilization. The space between these circles defines a "safe and just space for humanity," where economic activities should thrive without exceeding ecological limits. This framework proposes seven transformative ways of thinking for 21st-century economists, emphasizing the need to move beyond GDP growth, recognize the interconnected roles of different economic players, promote diversity and collaboration, design equitable systems, and aim for thriving rather than mere growth. By addressing the fundamental question of how to meet people's needs within the planet's ecological boundaries, the Doughnut Economy offers a holistic approach to urban development, especially relevant to the challenges of housing affordability, social inequality, and climate change. Amsterdam has emerged as a pioneer in adopting the Doughnut Economics model, officially implementing it in 2020 to guide its recovery from the COVID-19 pandemic. The city's approach focuses on creating a "City Portrait" to evaluate local needs and environmental impacts. With initiatives like the Amsterdam Doughnut Coalition, the framework aims to bring all residents into the doughnut while addressing pressing urban challenges through innovative housing solutions and sustainable urban planning.
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The Doughnut Economy: A Framework for Sustainable Development
The Doughnut Economy represents an innovative economic model that challenges traditional growth-focused economics by reimagining prosperity through a dual focus on social wellbeing and ecological sustainability. As cities worldwide face interconnected crises of housing affordability, social inequality, and climate change, this framework offers a holistic approach to urban development that seeks to ensure all people can thrive within planetary boundaries.
The Concept and Core Principles
The Doughnut Economy, developed by Oxford economist Kate Raworth, is visualized as a doughnut-shaped diagram with two concentric circles. The inner circle represents the "social foundation" - the minimum standards needed for a good quality of life, including access to food, water, housing, education, healthcare, political voice, and social equity. The outer circle represents the "ecological ceiling" - planetary boundaries beyond which we risk irreversibly destabilizing Earth's systems, such as climate change, biodiversity loss, and ocean acidification.
Between these two boundaries lies the "safe and just space for humanity" - the doughnut-shaped area where humanity can thrive. In this model, economic activity should serve to bring everyone into this safe space without overshooting ecological limits.
Doughnut Economics proposes seven key transformative ways of thinking for 21st century economists:
- Change the Goal: Move beyond GDP growth as the primary measure of economic success
- See the Big Picture: Recognize roles of households, commons, market, and state in economic transformation
- Nurture Human Nature: Promote diversity, participation, collaboration, and reciprocity
- Think in Systems: Consider dynamic effects, feedback loops, and tipping points
- Design to Distribute: Create systems that distribute value fairly
- Design to Regenerate: Work within the cycles of the living world
- Aim to Thrive Rather Than Grow: Overcome structural dependency on endless growth
Origins and Development
The Doughnut concept first emerged in 2012 when Kate Raworth published "A Safe and Just Space for Humanity" as an Oxfam report. She later expanded these ideas in her 2017 bestseller "Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist," which has since been translated into over 20 languages.
The model combines the concept of planetary boundaries (developed by earth-system scientists) with complementary social boundaries derived from UN sustainable development goals. It seeks to address a fundamental question: How can economies meet people's needs without overshooting Earth's ecological limits?
The framework gained significant international traction, attracting interest from diverse stakeholders including the UN General Assembly, Extinction Rebellion, various business leaders, and policy makers worldwide.
Application to Sustainable Housing and Urban Development
The Doughnut Economy framework has found particular resonance in urban planning and housing development, where its holistic approach helps cities address interconnected challenges.
Amsterdam: A Pioneer in Doughnut City Planning
Amsterdam became the first city to officially adopt Doughnut Economics in April 2020. During the COVID-19 pandemic, the city announced it would recover from the crisis by embracing this model, releasing the "Amsterdam City Doughnut" as a policy tool to guide urban development.
Amsterdam's approach involved creating a "City Portrait" - downscaling the global Doughnut to city level by examining four "lenses":
- What would it mean for Amsterdam residents to thrive?
- What would it mean for Amsterdam to respect the wellbeing of people worldwide?
- What would it mean for Amsterdam to thrive within its natural ecosystem?
- What would it mean for Amsterdam to respect the health of the whole planet?
The city is implementing massive infrastructure projects, employment schemes, and new policies for government contracts aimed at bringing all 872,000 residents "inside the doughnut." Meanwhile, approximately 400 local organizations formed the Amsterdam Doughnut Coalition to run grassroots programs supporting this vision.
Housing Innovations Through a Doughnut Lens
Several housing and urban development initiatives inspired by Doughnut Economics have emerged:
Home.Earth: This Copenhagen-based urban development company founded in 2021 explicitly applies Doughnut Economics principles to real estate. Their innovative model includes:
- Using planetary boundaries as guidelines for ecological impacts
- Optimizing for affordability, liveability, inclusivity, and responsible supply chains
- Operating as an "evergreen company" developing properties for perpetual operation
- Sharing profits with tenants, a foundation, team members and investors
- Creating a more equitable distribution of property profits to increase housing affordability
The Doughnut for Urban Development Manual: This open-source tool provides practical guidance for evaluating and enhancing the sustainability of urban projects. It addresses both social and planetary sustainability across local and global dimensions.
Municipal Housing Challenges: Using the Doughnut framework, cities are addressing urbanization challenges including housing scarcity, affordability crises, and urban expansion through solutions like zero-emission settlements and innovative housing concepts.
Global Spread and Future Directions
Following Amsterdam's lead, many other cities worldwide are exploring or implementing Doughnut Economics principles. These include municipalities in Canada (Nanaimo and Victoria), various European cities, and communities across continents.
The Doughnut Economics Action Lab (DEAL), founded by Raworth, supports these efforts through tools, resources, and events. The DEAL community has grown to over 7,500 members globally, representing diverse sectors including government, business, academia, and civil society.
As housing affordability, social inequality, and environmental crises intensify globally, the Doughnut framework offers a valuable tool for cities seeking to balance human needs with planetary boundaries. By reimagining economic purpose beyond growth toward genuine prosperity within ecological limits, it provides a coherent framework for addressing interconnected urban challenges.
References
- About Doughnut Economics | DEAL. https://doughnuteconomics.org/about-doughnut-economics
- Kate Raworth Introduction to Doughnut Economics - YouTube. https://www.youtube.com/watch?v=talXb1wiEFY
- Doughnut Principles of Practice. https://www.cambridgedoughnut.org.uk/doughnut-principles-of-practice/
- Doughnut Economics by Kate Raworth - Chelsea Green Publishing. https://www.chelseagreen.com/product/doughnut-economics-paperback/
- Amsterdam City Doughnut | DEAL. https://doughnuteconomics.org/stories/amsterdam-city-doughnut
- Home.Earth: Doughnut Design Case Study | DEAL. https://doughnuteconomics.org/stories/home-earth-doughnut-design-case-study
- Case Study | Alternative Economic Models Are Helping Cities Thrive. https://www.tamarackcommunity.ca/hubfs/Case-study_Alternative-economic-models-are-helping-cities-thrive.pdf
- Doughnut (economic model) - Wikipedia. https://en.wikipedia.org/wiki/Doughnut_(economic_model)
- How Amsterdam Uses the Doughnut Economics Model to Create a Balanced Strategy. https://www.archdaily.com/997291/how-amsterdam-uses-the-doughnut-economics-model-to-create-a-balanced-strategy-for-both-the-people-and-the-environment
- The Doughnut for Urban Development - Home.Earth. https://www.home.earth/doughnut
- What is Doughnut Economics? | University of Leeds. https://pg-online.leeds.ac.uk/blogs/what-is-doughnut-economics/
- Doughnut Economics: Bold Blueprint for a Sustainable Future. https://populationmatters.org/news/2024/09/doughnut-economics-bold-blueprint-for-a-sustainable-future-part-two/
- Explainer: What Is Doughnut Economics? - Earth.Org. https://earth.org/what-is-doughnut-economics/
- Could Amsterdam's New Economic Theory Replace Capitalism? https://time.com/5930093/amsterdam-doughnut-economics/