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Headshot of Andree Bock By
Andree Bock

Doughnut Economics: On Planetarian and Social Boundaries

Translated by Laura Steeghs

The Earth moves around the sun in the “habitable zone”. If we were closer, we would burn. Too far away and our planet would be a ball of ice. The doughnut model is based on the idea that the Earth itself also has limits: planetarian and social. We must not go beyond the planetary limits or below the social ones. Doughnut economics describes what the habitable zone looks like in a system in which social and ecological balance prevail.

Admittedly, the doughnut as an unhealthy and sugar-laden food is not the best way to visualise a sustainable economic system. But it is an image that sticks in people’s minds. And that was what the creator, economist Kate Raworth, was aiming for when she presented the model in 2012.

The donut model as a graphic. The round dough mass of the donut describes the habitable zone. It is surrounded by the ecological ceiling as the outer boundary and the social foundation as the inner boundary.

A compass for balanced prosperity

The doughring of the doughnut in the model represents the habitable zone. If we exceed our planetary boundaries (psst: we already do), we are, figuratively speaking, moving closer to the sun. It will get too hot. This manifests itself in melting poles, rising sea levels, storms and fires and much more. On the other hand, social boundaries such as education, nutrition, access to healthcare, gender equality, etc. must not fall short, as this leads to social coldness.

The ring of the doughnut defines the framework within which we should act if we want to live on a healthy and fair planet. A framework in which we scale back our transgressions of the planet’s boundaries. And at the same time help people out of the hole in the centre of the doughnut and into the safe and just space of humanity.

Higher, bigger, further - the problem with eternal growth

Economic growth as we know it has brought us to where we are today: in crisis mode. Quite simply because our resources are limited and our planet has climatic boundaries. I could go on for hours about the connection between colonialism, natural resources and exploitation, but that is really a discussion of its own.

The doughnut model proposes to replace economic indicators with ecological and social ones. The measurement or calculation of the habitable zone is based on nine dimensions of the ecological ceiling and twelve dimensions of the social foundation.

The nine dimensions of the ecological ceiling:

  1. Climate change
  2. Ocean acidification
  3. Chemical pollution through waste generation
  4. Nitrogen & phosphorus loading through excessive fertiliser use
  5. Freshwater withdrawals
  6. Land conversion
  7. Biodiversity loss
  8. Air pollution
  9. Destruction of the ozone layer

The twelve dimensions of the social foundation:

  1. Water
  2. Food
  3. Health
  4. Education
  5. Income & work
  6. Peace & justice
  7. Political voice
  8. Social equity
  9. Gender equality
  10. Housing
  11. Networks
  12. Energy

According to this model, growth would then describe the growth of people’s well-being. A revolutionary idea? Unbelievable even? This is precisely the problem. We have internalised the mantra of constant external growth to such an extent that we have perhaps neglected to look inwards. Changing the way we think starts in the mind and requires courage.

Amsterdam: from inventing capitalism to doughnut-pioneer

It is remarkable that Amsterdam, of all places, has become the pioneer of doughnut economics. Remarkable because it is a logical development. The ‘Verenigde Oostindische Compagnie’, the Dutch East India Company, was founded there in 1602. It was the nucleus of capitalism. About 400 years later, in 2020, the Amsterdam region launched a concept developed with Kate Raworth. Some of its components are:

  • Reducing CO2 emissions
  • Securing basic needs
  • Conserving resources
  • Switching to solar and wind energy

Now it’s clear why we at ForTomorrow are such big fans of the model and the municipality of Amsterdam: we are on the same team. Our approach is to buy up and decommission EU emission rights. If you would like to help us keep Earth in the habitable zone, you can do so here.