Introduction
“The Doughnut” offers a vision of what it means for humanity to thrive in the 21st century – and Doughnut Economics explores the mindset and ways of thinking needed to get us there. First published in 2012 in an Oxfam Report by Kate Raeworth, the concept of “Doughnut Economics” rapidly gained traction internationally. Examples are the UN General Assembly and the Occupy movement. Released in 2017, “Doughnut Economics: seven ways to think like a 21st-century Economist” by Kate Raeworth further explored the economic thinking needed to bring humanity into the Doughnut, drawing together insights from diverse economic perspectives in a way that everyone can understand. The book soon became an international bestseller and has now been translated into over 20 languages.
What is “Doughnut Economics?”
They say a picture speaks a thousand words, so let us see the state of humanity just in a single image – the Doughnut of social and planetary boundaries is just the compass we need for creating a safe 21st century.
The outside of the doughnut economic model represents the unsustainable impact on the environment while the hole in the centre reveals the proportion of people worldwide falling short on essentials, such as food, water, healthcare and political freedom of expression. Thus, the challenge here on the part of humanity is to get everyone out of that hole. At the same time, we cannot afford to be overshooting the outer crust of the doughnut, so that we safeguard the life-giving systems of the Earth – such as a stable climate, healthy oceans and a protective ozone layer, on which all our well being fundamentally depends.
The 21st Century Mindset
The starting point of Doughnut Economics is to change the aim of endless GDP (Gross Domestic Product) growth to thriving in the model of the Doughnut.
At the same time, begin the economic analysis by seeing the big picture and recognising that the economy is embedded within. An embedded economy emphasises the interdependence of economic activities and the social world. Doughnut Economics highlights the fact that all economies are fundamentally dependent upon society and the living world. Moreover, this theory recognises that human behaviour has the potential to be nurtured – to be cooperative and caring, just as it can be competitive and individualistic. Therefore, a shift from capitalist thinking to a more collaborative approach is desirable. It also recognises that economies, societies, and the rest of the living world, are complex, interdependent systems that are best understood through the lens of systems thinking. Lastly, Doughnut Economics recognises that growth is a healthy phase of life, keeping in mind of course that nothing grows forever.
The Case of Amsterdam Embracing this Economic Theory
In April 2020, during the first wave of COVID-19, the city government of Amsterdam announced that it would recover from the crisis and avoid future ones by embracing the theory of “doughnut economics”. Amsterdam has the vision to become a thriving, regenerative and inclusive city for all its citizens while respecting the planetary boundaries, which makes the city a pioneer of such systemic transformation. In this spirit, the City of Amsterdam has joined the Thriving Cities Initiative (TCI), a collaboration between C40, Circle Economy, and Doughnut Economics Action Lab, which works with cities pursuing such a transformation.
The key tool of the TCI is a City Portrait based on the Doughnut of social and planetary boundaries. It is a holistic snapshot of the city and serves as a starting point for big-picture thinking, co-creative innovation, and systemic transformation, rather than as a comprehensive assessment of the city. In the past, the city has been recognised for its ‘Amsterdam Approach’ to collaborative innovation, which connects neighbourhood initiatives, start-ups and civil society with the established institutions of government, business and knowledge institutions. Furthermore, the city is home to a dynamic network of changemakers that have already begun using Doughnut-inspired thinking to drive systemic change. With such an opportunity, Amsterdam can be a pioneer of what it means to become a thriving city and in doing so inspire cities worldwide on their journeys of transformation.
How will Amsterdam implement this theory?
Amsterdam is using this framework to explore what it would mean for Amsterdam to:
- Thrive within its natural habitat
- Respect the wellbeing of people worldwide
- Respect the health of the entire planet
Having the ambition to bring all of its 872,000 residents inside the doughnut, Amsterdam wants to ensure everyone has access to a good quality of life while at the same time not putting pressure on our planet. Guided by Raeworth’s organization, the Doughnut Economics Action Lab (DEAL), the city is introducing massive infrastructure projects, employment schemes and new policies for government contracts to that end. Meanwhile, some 400 local people and organizations have set up a network called the Amsterdam Doughnut Coalition to run their programs at a foundational level.
What Would it Mean for Amsterdam to Thrive?
What defines whether the population of a city is thriving or not? The best answer surely comes from the people themselves – based on their local context, aspirations, culture, and values. The many components of wellbeing are clustered into the following four areas:
What defines whether the population of a city is thriving or not? The best answer surely comes from the people themselves – based on their local context, aspirations, culture, and values. The many components of wellbeing are clustered into the following four areas:
- healthy: food, water, health, housing
- enabled: education, energy, income and employment
- connected: mobility, community, digital connectivity, and culture
- empowered: social equity, political voice, equality in diversity, and peace and justice
Looking into the thoughts of the residents of Amsterdam and their visions and priorities for a thriving Amsterdam, several valuable insights emerged.
When asked “what makes you thrive?” the most popular response from participants focused on connecting with nature. One of Amsterdam’s residents stated: “I hope that the City can create more green spaces while the city is growing so rapidly. It helps biodiversity and gives the possibility of meeting other Amsterdammers.”
In terms of thriving in its natural habitat, urban designers in Amsterdam are integrating biomimetic designs into the fabric of their buildings. Some are creating habitats for species directly in the fabric of buildings, such as by using bee-hotel bricks, and ensuring retaining walls include places for nesting birds. Incorporating green roofs and walls that help to connect fragmented habitats supports more native species, and creates pollinator corridors. The City of Amsterdam is likewise taking action to significantly reduce air pollution with its Clean Air Action Plan, expanding the current low-emission zones, culminating in a complete ban on petrol and diesel cars and motorbikes in the city by 2030. The Clean Air Action Plan would encourage the city to set goals that match the ability of a nearby thriving forest to capture particles and create clean air. Pursuing such aspirational and scientific aims could restore the sense of purpose of the community and ensure the wellbeing of all.
Sources
https://doughnuteconomics.org/about-doughnut-economics
https://time.com/5930093/amsterdam-doughnut-economics/
Roworth, Kate. “The Amsterdam City Doughnut,” March 2020: Amsterdam.