Andrew Fanning and Kate Raworth have published the first update to the Doughnut Economics framework since 2017 in the prestigious journal Nature. This update highlights critical imbalances in global ecological and social systems, particularly noting an overshoot on six of the nine planetary boundaries essential for sustaining life on Earth.
The Doughnut Economics framework, first introduced in Raworth’s influential book, “Doughnut Economics: Seven Ways to Think Like a 21st Century Economist,” serves as a visual representation of the complex challenges faced by humanity in the 21st century. This optimistic milestone is overshadowed by a glaring imperative for reform, as the world rethinks how we measure progress. This is particularly vital in light of the vast inequalities both between rich and poor countries.
Key Findings from the Update
The update reveals that the richest 20% of nations, which constitute only 15% of the global population, are responsible for a staggering 44% of the global ecological overshoot. The 40% of countries that are the poorest, home to 43% of the world’s population, are responsible for just 4% of our ecological overshoot. At the same time, they are shouldering an incredible 63% of the social deficit.
This jarring juxtaposition of plenty for some and want for many more highlights the glaring need for a realignment of economic policies across the globe. Fanning’s study, co-authored with others, emphasizes that a “Doughnut of social and planetary boundaries” can effectively monitor global imbalances and guide future policies.
“Governments must bake in the process of asking themselves: what have you done for growth today?” – Danielle Wood
The update indicates that ocean acidification has now crossed a seventh boundary, further jeopardizing marine ecosystems and the livelihoods that depend on them. This new discovery brings with it an urgent call to action, one that should resonate on multiple fronts with policymakers, environmentalists and business leaders alike.
Global Reactions and Local Initiatives
More recently, the Doughnut Economics framework has been spreading around the world. It has inspired hundreds of local initiatives that better promote sustainable development. In Australia, Regen Melbourne has a busy team directly customizing the Doughnut model. In doing so, they are developing a city portrait that serves their community’s unique set of circumstances. This site-specific approach helps communities see the landscape of their specific challenges and strive for better ecological and social outcomes that are more in balance.
Collaboration with Indigenous consultancy Dinadj will explore how to implement an Indigenous doughnut model. This model will demonstrate Aboriginal ways of achieving sustainability and high quality of life for community members. Innovative approaches These efforts point to the need for inclusive approaches when addressing environmental challenges.
These concepts received a timely boost from the Productivity Commission’s recently released “Growth Mindset” report. It shows the increasing divide between long-standing economic priorities and Australia’s immediate need for social and environmental wellbeing. This report embodies the principles of Doughnut Economics. It advocates for a more comprehensive approach to measuring progress—one that takes into account the well-being of people as well as the finite resources of our planet.
The Future of Doughnut Economics
Increasingly, governments, businesses, and civil society organizations have been using the ideas of Doughnut Economics. This change is generating an emerging understanding that we need new and better measures of progress. The framework’s effectiveness lies in its ability to convey complex global challenges through a single, easy-to-understand diagram, making it accessible for a wide audience.
The latest update from Fanning and Raworth serves as a critical reminder of the state of the planet and the urgent need for collective action. By adopting this framework, societies can start to harmonize their economic models with ecological imperatives. In tandem, they can work to advance social equity.