3 minute read

‘We must move away from perpetual

Next Article
Five talents Five

Five talents Five

‘THIS CENTURY’S

MESSAGE MUST BE VERY DIFFERENT FROM THAT OF LAST CENTURY’

We have to get rid of the idea that we have to ensure growth all the time, says economist Kate Raworth. ‘Progress comes from a dynamic balance between the environment and what we need.’

HOW DO WE SHAPE THE FUTURE?

We have to move towards fewer possessions so there is space in the streets again for cycling, playing and creating connections between people

Text: Marleen Hoebe Photography: Roman Krznaric

‘If we want to shape the future in a better way, we must first realise that we need to change the global economy, as complex as that is. Our economy is still focused on growth and has been since the middle of the last century. This is partly due to the concept of gross domestic product – GDP – developed by American economist Simon Kuznets. The idea behind this is that an increase in this value equals economic growth. And that should mean prosperity. GDP is a very powerful tool for comparing national income across countries. But it says little about prosperity. You need more figures for that.

The message of the twentieth century was to ensure continuous growth. For the twenty-first century, that message must be different. Growth is very destructive to the Earth. Progress comes from a dynamic balance between the environment and what we need. We have to go through a transformation. That is where the doughnut model can help.

This diagram, a circle with a hole in the middle, shows whether we are meeting people’s basic needs and whether in doing so we are crossing planetary boundaries, such as biodiversity loss, freshwater withdrawal, and climate change. I created this visual model because I believe images help us think differently. They show things we don’t notice at first. People’s reactions demonstrate this. I am surprised so many people are attracted to this model.

Personally, I see the doughnut model as a compass for changing the economy. It helps us capture how we affect planetary boundaries as we realise our needs. This insight will keep us from focusing on growth. We have not applied a model like this before. That is why I set up the Doughnut Action Lab with colleagues, so that we could put the doughnut model into practice, for example in a community or classroom.

We work a lot with cities, including Amsterdam. Amsterdam uses the doughnut model to become circular. This means that no waste matter is left over; all materials, such as textiles and plastic, are reused. This is an ambitious goal, but cities have to move in this direction. Our ecological footprint must be reduced.

Amsterdam’s ambition is to be completely circular by 2050. By 2030, the city aims to achieve 50 per cent circularity. And by 2022, 10 per cent of the city’s purchases must be circular. This goal is not only good for the environment, but it also creates new initiatives. Amsterdam is already very focused on cyclists and accessible public transport, with its trams and metros, but new things are being added as well.

One example is car sharing. Sometimes people think that replacing fossil fuels with electricity is enough, but that is not the solution. There is still a lack of space, and we still consume a lot of energy, because many people have their own car. We must move towards fewer possessions so there is space in the streets again for cycling, playing and creating connections between people, among other things. That is why car sharing is better. I do the same with my family now and it works out fine.

In the doughnut model, these kinds of initiatives work both ways: they are better for our social needs and for our planet. So, if we want to shape the future, we have to change our old behaviours and believe that we can do it.’

CV

KATE RAWORTH

is an economist at Oxford University and Professor of Practice at the Amsterdam University of Applied Sciences. In 2017, she published the book Doughnut Economics: Seven Ways to Think Like a 21stcentury Economist.

This article is from: