Global Economy on Collision Course with Nature
The influential economic theory known as “Doughnut Economics” has received its first major update since 2017, revealing a global economy increasingly out of balance with planetary boundaries, according to reports published in Nature. The framework, originally developed by economist Kate Raworth, illustrates humanity’s safe operating space between social foundations and ecological ceilings.
Visualizing the Planetary Crisis
The doughnut-shaped model shows the hole at the center representing shortfalls in essential social foundations like food security, health, and education. The area outside the ring depicts ecological overshoot across critical domains. Analysts suggest the updated framework now includes annual data from 2000-2022, enabling tracking of trends over time.
“What these trends show is alarming,” sources indicate. While global GDP has more than doubled since 2000, progress on meeting social foundations has slowed and ecological overshoot has accelerated. The report states we are damaging critical biophysical processes faster than we’re improving people’s lives.
Planetary Boundaries Under Pressure
According to the analysis, humanity has now overshot six of the nine critical global planetary boundaries. Separate research from the Stockholm Resilience Centre indicates we’ve since crossed a seventh boundary – ocean acidification.
Wealthy Nations Drive Ecological Damage
The updated national-level data reveals stark inequalities in environmental impact and social wellbeing. The richest 20% of nations, housing just 15% of global population, are reportedly responsible for 44% of global ecological overshoot while experiencing only 2% of social foundation shortfalls.
Meanwhile, the poorest 40% of countries, with 43% of the population, account for merely 4% of ecological overshoot but bear 63% of the social shortfall. This illustrates what analysts suggest is the unequal nature of economic development under the current system.
Social Progress Stalling Despite Growth
While some social indicators show improvement, sources indicate alarming shortfalls remain. Approximately 75% of the global population reportedly perceives widespread corruption in government and business. Some indicators are moving backward, with rises in autocratic regimes and food insecurity noted in the findings.
Global Movement for Change
Since the original 2017 publication, Doughnut Economics has evolved into a global movement centered around the Doughnut Economics Action Lab. Many cities, including Melbourne, are using the framework to assess their social and ecological conditions.
The approach aligns with Australian First Nations’ view of Country, according to Indigenous consultancy Dinadj, which is developing an Indigenous Australian version of the doughnut model.
Australian Initiatives Embracing New Progress Measures
In Australia, several government initiatives are reportedly adopting broader measures of progress. The federal government’s Measuring What Matters framework aims to track progress toward a healthier, more sustainable Australia.
State governments are also engaging with wellbeing frameworks, including the NSW Performance and Wellbeing Framework and South Australia’s economic approach outlined in the South Australian Economic Statement. Regional initiatives like the Setting Australia’s Wellbeing Agenda report further demonstrate this shift.
Rethinking Economic Progress
The updated Doughnut Economics framework adds to growing evidence that equating economic growth with progress is leading toward multiple environmental crises while falling short on delivering social advancement, according to analysts. The research suggests it’s increasingly important to repurpose our economy away from destructive growth-at-all-costs models and toward human and environmental flourishing.
This article reports on research originally published by The Conversation under Creative Commons licensing.
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