News
October 13, 2025
'Doughnut Economics' Shows How Global Growth Is Out Of Balance - And How We Can Fix It
(MENAFN - The Conversation)A new update to an influential economic theory called–Doughnut Economics– shows a global economy on a collision course with nature.The influential book by Kate Raworth, ...
**'Doughnut Economics' Shows How Global Growth Is Out Of Balance - And How We Can Fix It**
The global economy is heading for trouble, according to a newly updated analysis based on "Doughnut Economics," a groundbreaking theory that challenges conventional economic thinking. Originally laid out in Kate Raworth's influential book, the Doughnut Economics framework presents a vision of prosperity that operates within the planet's ecological limits while ensuring everyone's basic needs are met.
The update, highlighted by The Conversation, reveals that instead of moving towards this ideal "doughnut" shape – a safe and just space for humanity – the global economy is increasingly exceeding planetary boundaries while simultaneously failing to provide for many of its citizens.
Imagine a doughnut. The outer ring represents the Earth's ecological ceiling – limits to resource extraction, pollution, and climate change that we cannot afford to breach. The inner ring signifies the social foundation, the minimum standards of living everyone should have access to, including food, water, health, education, and social equity.
The goal, according to Doughnut Economics, is to operate within the sweet spot – the dough itself – where we meet everyone's needs without destroying the planet. However, the updated analysis suggests that we are overshooting the outer ring in many areas, pushing beyond safe environmental thresholds. At the same time, a significant portion of the world's population still lacks access to essential resources and opportunities, falling short of the social foundation.
This creates a situation where economic growth, as traditionally measured, is not leading to overall well-being. Instead, it's driving ecological degradation and exacerbating social inequalities. The update to Doughnut Economics serves as a stark warning that the current trajectory is unsustainable.
So, what's the solution? Doughnut Economics proposes a radical shift in economic thinking. It calls for moving away from a singular focus on GDP growth and embracing a more holistic approach that prioritizes social justice and environmental sustainability. This involves redesigning economies to be regenerative, distributing resources more equitably, and fostering a sense of collective responsibility for the planet and its people. The challenge now is to translate this compelling theory into practical action, reshaping policies and practices to create a truly sustainable and equitable future for all.
The global economy is heading for trouble, according to a newly updated analysis based on "Doughnut Economics," a groundbreaking theory that challenges conventional economic thinking. Originally laid out in Kate Raworth's influential book, the Doughnut Economics framework presents a vision of prosperity that operates within the planet's ecological limits while ensuring everyone's basic needs are met.
The update, highlighted by The Conversation, reveals that instead of moving towards this ideal "doughnut" shape – a safe and just space for humanity – the global economy is increasingly exceeding planetary boundaries while simultaneously failing to provide for many of its citizens.
Imagine a doughnut. The outer ring represents the Earth's ecological ceiling – limits to resource extraction, pollution, and climate change that we cannot afford to breach. The inner ring signifies the social foundation, the minimum standards of living everyone should have access to, including food, water, health, education, and social equity.
The goal, according to Doughnut Economics, is to operate within the sweet spot – the dough itself – where we meet everyone's needs without destroying the planet. However, the updated analysis suggests that we are overshooting the outer ring in many areas, pushing beyond safe environmental thresholds. At the same time, a significant portion of the world's population still lacks access to essential resources and opportunities, falling short of the social foundation.
This creates a situation where economic growth, as traditionally measured, is not leading to overall well-being. Instead, it's driving ecological degradation and exacerbating social inequalities. The update to Doughnut Economics serves as a stark warning that the current trajectory is unsustainable.
So, what's the solution? Doughnut Economics proposes a radical shift in economic thinking. It calls for moving away from a singular focus on GDP growth and embracing a more holistic approach that prioritizes social justice and environmental sustainability. This involves redesigning economies to be regenerative, distributing resources more equitably, and fostering a sense of collective responsibility for the planet and its people. The challenge now is to translate this compelling theory into practical action, reshaping policies and practices to create a truly sustainable and equitable future for all.
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