QH0625 Doughnut Economics: Shifting Towards a Sustainable and Equitable Economic Assignment Sample

Introduction Of Doughnut Economics: Shifting Towards a Sustainable and Equitable Economic Model

Older concepts and frameworks that promote continuous expansion and advancement have long dominated the discipline of economics. A different plan, that challenges the current status system and proposes an alternative model of economics that provides emphasis on both environmental and social happiness, has nevertheless developed in the past few years. Doughnut Economics and Finance, an appealing new framework, aims to create a renewable and all-encompassing economy while recognizing the limitations of the global economy. The assignment aims to look into the possibility of introducing doughnut economics within conventional institution academic thinking. The ground-breaking potential behind the topic and the urgent need to address issues including injustice in society, inequalities in wealth and the effects of climate change make it especially compelling. The theory of "doughnut economics," created by Kate Raworth, seeks to meet the demands of society within the "social foundation" whilst working inside the "planetary limits" that protect the natural world. The "Doughnut" symbolizes the area within both of these lines where humankind may exist in harmony and prosperity.

It encourages an evolution in mentality that moves away from being preoccupied with growth in gross domestic product (GDP) and towards enhancing social well-being, minimizing disparities and upholding environmental limitations. This work is important since it examines an issue that puts to question on the entire basis of the theory of economics. It requires an examination of the present economic structures that have contributed to injustice and the destruction of the environment. It aims to discover more about how Doughnut Economics can affect choices, establish regulations, and encourage social change to have more of an impact on the global community. This attempts to determine possible problems, opportunities and implications for the creation of policies by investigating the possibility of integrating doughnut economics into standard economic processes. It attempts to find out how this approach aligns with the goals of says, businesses, and international groups and how politicians, economists and various other stakeholders could encourage them.

Literature Review of Doughnut Economics

By the views of Castro, et. al, (2022) being a challenge to standard economics pondering, Kate Raworth's concept of doughnut economics has drawn an abundance of attention lately. The objective of this review of the literature is to investigate the past as well as the current situation of doughnut economics, by taking into consideration an array of related topics. This primer will look through the growth of doughnut economics, the principles that guide it, how this approach could be used across different circumstances, and the opportunities as well as challenges that are associated with adopting the concept into operation. It additionally recognizes that human society, the field of economics, and the remainder of life on earth are complicated, interrelated structures that are best understood via a systems thought approach. Moreover, it maintains on converting the dispersed economics present tomorrow toward those which are considerably more equitable.

Krznaric (2020) entailed in their study that at the very least, the theory of doughnut economics understands that although growth might represent an appropriate stage in life as a whole everything develops permanently. However, effective objects create unless there's enough appropriate for it to reach maturity as well as flourish. Doughnut Economics begins by changing its goal from thenever-ending expansion of GDP to surviving within a doughnut. Understand what interrelated and interdependent the economic system is inboth humanity and the natural world for the purpose to comprehend the broader context. In the words of Doughnut Economics, individuals can be taught to be both competing and independent in addition to collaborative and empathy. Melles (2021) depicted in the study that the Doughnut is composed of a pair of circular rings: an environmental ceiling that prevents humankind from jointly exceeding the planetary boundaries. This protects the Earth's living-supporting structures and an economic basis that guarantees ensure nobody remains without the basic needs for existence. Here is a doughnut-shaped area within both of these sets of limitations which is both environmentally safe and morally just: something wherein human beings are allowed to thrive.

According to the views of Larsen (2021)the fundamentals of Doughnut Economics may be discovered in criticisms of conventional economics, which frequently put a premium on unlimited growth in the economy despite overlooking environmental and social problems. The current financial perspective was created by Kate Raworth's key book, "Doughnut Economic Theory: 7 Waysto think like 21st-Century Economics". As a way to convey an equitable and secure area that humanity occupies across interpersonal and global boundaries, Raworth developed this "Doughnut" model. The inner circle in the doughnut approach, composed of 2 overlapping rings, standsin for the "social basis" which makes ensures that everyone has the necessary essentials including nourishment, water, medical care, schooling, and equal opportunities. The outermost ring symbolizes the "planetary boundaries" which maintain biological boundaries while avoiding environmental damage. In order to establish an environmentally friendly and fair economy, it will be challenging to maintain an acceptable compromise between these two distinct borders. Waddock (2020) showcased the current theory of economics which put ahead in Doughnut Economics. Establishingthe regeneration and equitable processes that the 21st-centuryrequests, does not require an assortment of regulations and structures. It offers 7 arrives for functioning like a 21st-century accountant with the goal to change economies, via local through worldwide, building on concepts of a number of schools of economic considering, particularly environmentally friendly, feminist, institutionalized, behavioural in nature and structural economists.

Dale (2021) stated that Doughnut Economics emphasize the importance of solving thedepletion of resources, declining biodiversity and global warming. The Doughnut model's consistency withthe Sustainable Development Goals, or SDGs, of the United Nations (UN),was looked at bythe writer of the piece, who additionally demonstrated how it could be utilized in guiding developmental and government choices. The well-being of people and fair distribution of assets isnot well represented by standard economic measurements such asGDP. Hayward (2020) entailed that Doughnut Economics is a philosophy that encourages the use ofdifferent evaluationsto evaluate environmental and social outcomes, among them the Real Progression Measure (GPI). Larsen (2021) highlighted the boundaries of GDP and its relevance asan additional gauge of achievement. Larsen (2021) assessed that a circular economy, that minimizes pollution and hasan advantageous effect on the natural world. Thus, reuse, fixing, and reusing materials, is a concept that Doughnut Economics strongly advocates for. Organizationslike the Ellen MacArthur Foundation, for example, have investigated how the Doughnut model could potentially be applied to advance practices that are regenerative and support sustainable development strategies.

Moretti (2022) identified in their study that the implementation and measurement of the Doughnut model's borders present important challenges. Establishing certain social and environmental limitations, according to critics, can be challenging and dependent on context, rendering it is challenging to actually put these standards into practice. It requires significant systemic shifts to go from traditional growth-centric economic theories to the Doughnut Economy. Its widespread adoption may be hampered by vested interests' resistance and the stalemate of the present economic structures. Washington and Maloney (2020) investigated that Doughnut economics received criticized for purportedly simplifying inequality worldwide and disregarding rich economies' historical contribution to creating global calamities. Knowing relationships between nations along with cooperation on greater levels will be required for dealing with those challenges.

Sahan, Ruiz and Raworth-DEAL (2022) mentioned in their study that the Doughnut concept can be utilized by policymakers and government. It emphasizes on organizing principle to develop strategies thatgive importance to social well-being and the preservation of the environment. Studies in nations like the city of Amsterdam, which accepted the Doughnut concept as an across-the-city policy by hand, show just how helpful this approach was. By incorporating environmental and social variables in their discussions, companies may consider doughnut economics. Turner and Wills (2022) analysed that in order to align the way they operate with the well-being of individuals throughout the globe, non-profit organizations and environmentally conscious companies have begun to embrace doughnut economics principles. The next generation of policymakers and economists can be presented by integrating doughnut economics into the curriculum of schools to foster an improved understanding of the way the economy, culture and environment are intertwined.

Though Kate Raworth successfully presented her doughnut as an exhaustive approach for evaluating the present state of the global economy and of mankind, it is less apparent how society could shift towards such an approach. These provide comprehensive descriptions of distribution and regenerative procedures yet no meaningful recommendations regarding how to address the issues that already have been understood. It seems to indicate that Raworth herself minimizes the revolutionary nature of her ideas. Whatever concernsmost, nevertheless, is the amount of engagement and conversation this lecture creates among the people in attendance. These latter's requests extend from the manner in which the capitalist system is supposed to be reformed. to the extent that she believes that is sustainable with companies' improvementto make revenue, and several simply inquired for her viewpoint on particular problems. In actuality, almost every one of the inquiries showed an overwhelming sense of wonder and inquisitiveness.

Rashid, Deputy and Malaysia (2020) presented in their study that the measures which may be used to accomplish the intended objectives are ordered according to the compasses, Water, also known as food. Researchers studying the system of the Earth have discovered nine possible effects of human misuse of the environment which are shown beyond the environmental ceiling: depletion of the ozone layer, clean water withdrawals of funds, conversion of land, warming temperatures and pollutants from chemicals, acidification of the seawater, and pollution of the air.

Seven Ways To Think Like A 21st Century Economist

The writer renders unfavourable observations about the academic discipline of the economy and its current theory of evolution. It failed to open up to additional areas and stayed based on feasible, wonderful but unproven theories (like endless expansion or decoupling) rather than feasible and reproducible research (such as the essential function of power. The limited availability of assets or the capacity of people to significantly disrupt/devastate its environment) is assessed as one of the main problems. In simple terms, our cultures' mental frameworks are no longer operating successfully or have relevance for the environment in which we live.

1st principle: Alter the objective

The growth of the Gross Domestic Product (GDP), a financial measure that includes various prejudices and fails to pay, became the primary focus of 20th-centuryeconomists. To establish an alternative goal for humanity as a whole as represented in the doughnut, humanity must move previous this out-dated perspective form previous generations.

2nd principle: See the big picture

A Circular Flow Diagram serves as the only illustration frequently employed in traditional economics for illustrating the economy as a whole. These limitations have contributed to the neoliberalism story on the efficient operation of the marketplace, the ineffectiveness of government agencies, or the loss of common ownership (Spash, Méral and Petit, 2023). They have to create an alternative economic journey that is more organically harmonious with the community and the natural world.

3rd principle: Encourage human nature

The concept of Homo economics, a chilly, calculated person whose choices are solely designed for maximum earnings, provides control above a disordered and uncontrolled Nature, which is the foundation of twentieth-century economics. This outlook overlooks the fact that people are social beings susceptible to an extensive variety of mental errors that are going to impact every decision they make regardless of whether they are an essential component of the environment, through one of its many interconnected links.

4th principle: Master systems

Economics was plagiarized and copied by the mechanic physicists in both 19th and 20th centuries to claim the same authority as the biological disciplines. It didn't go anywhere or seek to look outside its basic tenets. The more comprehensive and detailed methodology might include recent discoveries such as the laws of thermodynamics complicated relationships, while maintaining the basic ideas of the system theory, especially concerning the concept of comments (Bon, 2022).

The 5th rule is: "Design to distribute"

Using the Kuznets curve, which is an easy-to-understand example that was employed to communicate an important point regarding disparities throughout the twentieth century, it became obvious that humanity would encounter difficulties while observing an obvious decrease in disparities due to economic development. In actuality, it appears as though the generation of the economy ofthe model's disparities was a mistake rather than a requirement or feature (Castro, et. al, 2022). This calls for the development of novel money-creation technologies in addition to novel structures for improved equitable distribution of wealth.

The 6th rule is: "Create to regenerate"

A healthy and clean environment has historically been thought of as something that is experienced mainly among the wealthiest, by the theory of economics. This point of view has been reinforced by the Kuznets curve, which reveals the path to a more favourable future. People must endure the worst possible scenario until the greatest time may come, while economic growth will (perhaps) cleanse the world of its chemicals. Environmental decreases are due to the impact of industrialized nations; there may be a lack of such legislation in the world of reality (Wahlund and Hansen, 2022). To reconnect humanity to the earth's cycles of nature, the economics of the twenty-first millennium are going to have to develop a cycle-based (and not one that is straight), renewable paradigm.

7th principle to disregard growth

The long-run trajectory of the growth of GDP is a simple yet terrifying illustration that is never shown in the traditional theory of economics. Considering the reality nothing develops naturally on an ongoing basis, mainstream economics prioritize development as an essential goal. The GDP measurement could potentially be dropped without ease but an attachment of expansion is still hard to overcome. As opposed to populations that grow endlessly by exposing citizens to endless stress, need environments that ensure mankind would develop (Turner and Wills, 2022). Individuals establish societies that are capable of functioning commercially, socially, and politically in a globalized environment where humans acquire the ability to adjust without development as an outcome of this essential change, which leads us to evolve into agnostic regarding development.

Conclusion

The research study highlights Doughnut Economics' inception and current position as a potential alternative to the traditional growth-focused economics worldview. The doughnut economics principles have tremendous potential for solving worldwide problems while creating an environmentally friendly and equitable future. But for widespread inclusion, significant obstacles such as measuring difficulty and political opposition must be solved. Possibilities abound for a transformative proceed towarda regenerating and welcoming society in policymaking, business transparency, and educational institutions. Implementing a doughnut economy has the potential to change the direction of economic theory and lead humankind to a more wealthy and equitable existence.

Doughnut Economics offers the capacity to offer an effective replacement for the traditional economics technique, as demonstrated by its growth and current state. Doughnut Economics is a book that provides an appealing plan for transforming economic theory by pressing worldwide issues by prioritizing the welfare of society and the preservation of the environment. These remain challenges to be overcome, the potential of successful implementation in company, regulations, and training shows that it has the potential to spur beneficial shifts in the path of an economy in the future which strives to be equitable, accessible, and renewable. Doughnut Economics' has widespread acceptance becoming achievable and transforming the potential while customers, legislators, and academics begin to research and promote ideas.

It can be proved that to learn and stimulating for learning about the concept of the doughnut economy and its potential inclusion within the traditional approach. Doughnut Economics' dual dedication to social well-being and the preservation of the environment questions the traditional macroeconomic paradigm's emphasis on development. Its development and the present situation reflect an increasing stake in an economic model that seeks to establish an equitable and just culture whilst respecting the boundaries of the natural world. Doughnut Economics provides an extensive perspective that takes into consideration the mutual dependence of the financial, social, and environmental systems.

It provides a structure for establishing laws and decisions that contribute to every individual's long-term well-being by picturing an area whereby the basic requirements of humanity are taken care of while expanding and exceeding environmental limitations. The implications of Doughnut Economics are important and ground-breaking for future managers and entrepreneurs. Throughout many different contexts, the understanding and expertise acquired from this research may influence the way we approach leadership, making choices and leadership. In Doughnut Economics, the importance of swiftly solving environmental issues is stressed. We have to integrate concepts about sustainability into all companies and societies for the next generation of leaders. To contribute to establishing regenerating economic benefits, companies have to implement the concepts of the circular economy, reduce waste products, and minimize the impact we have on the environment.

The social basis of Doughnut Economics provides an encouraging push to put society and the well-being of workers foremost. As supervisors, it's our responsibility to be sure that business practices encourage equitable wages, safe workplaces, and equal possibilities for all. Conventional economic indicators such as GDP might not accurately reflect advancement in society. Aspiring leaders, we need to encourage the adoption of different measures that incorporate into consideration environmental and social problems, including the Real Progression Indicators (GPI), in order to evaluate the genuine impact of choices. Doughnut Economics' precepts demand an examination of companies' objectives outside the maximization of profits. Future administrators need to encourage a more receptive and centred company's missions approach by the ways that businesses cooperate toward bettering the community and the health of the planet.

Authorities, businesses, non-profit groups, and ordinary people have to collaborate together to get around the challenges associated with doughnut economics. Organizations have to establish collaborations, be engaged with customers, and advocate Doughnut Economics-aligned initiatives as potential leaders. Generations of leaders have to spread an understanding of Doughnut Economics and its opportunities toward a future that is more equitable and sustainable as agents of transformation. An upcoming generation of decision-makers focused on creating an advantageous impact affecting society as a whole and our natural surroundings can be inspired by introducing such concepts into educational curricula and training for organizations.

References

Books and Journals

Castro, J. F. G., Evangelio, C. E. A., Saguiguit, C. A. G. and Pasquin, E. G., 2022. Is the Philippines within the Doughnut?: Quantifying Doughnut Economics through Sustainability Window Method.International Journal of Research in Engineering, Science and Management.5(11). pp.194-206

Castro, J.F.G., Evangelio, C.E.A., Saguiguit, C.A.G. and Pasquin, E.G., 2022. Is the Philippines within the Doughnut?: Quantifying Doughnut Economics through Sustainability Window Method.International Journal of Research in Engineering, Science and Management,5(11), pp.194-206.

Dale, G., 2021. Rule of nature or rule of capital? Physiocracy, ecological economics, and ideology.Globalizations,18(7), pp.1230-1247.

Hayward, S., 2020.Film Ecology: Defending the Biosphere—Doughnut Economics and Film Theory and Practice. Routledge.

Krznaric, R., 2020.The good ancestor: How to think long term in a short-term world. Random House

Larsen, T. ed., 2021.Applied Doughnut Economics and Neuroeconomic Psychology for Business and Politics. IGI Global

Melles, G., 2021. Figuring the transition from circular economy to circular society in Australia.Sustainability,13(19), p.10601.

Moretti, M., 2022.Can Doughnut Economics fill Amsterdam's dietary needs?: a critical examination of the city's new circular and climate strategy(Doctoral dissertation, European University Institute)

Rashid, A.A., Deputy, C. E. O. and Malaysia, U., 2020. Doughnut Economics-A Roadmap for a Thriving Sustainable City.URBANICE Malaysia-gaiageld. Com

Sahan, E., Ruiz, C. S. and Raworth-DEAL, K., 2022. What Doughnut Economics means for

Spash, C.L., Méral, P. and Petit, O., 2023. A journey into the foundations and transformative implications of social ecological economics: An interview with Clive Spash.Développement durable et territoires. Économie, géographie, politique, droit, sociologie,14(1).

Turner, R. A. and Wills, J., 2022. Downscaling doughnut economics for sustainability governance.Current Opinion in Environmental Sustainability.56. p.101180

Waddock, S., 2020. Reframing and transforming economics around life.Sustainability,12(18), p.7553.

Wahlund, M. and Hansen, T., 2022. Exploring alternative economic pathways: a comparison of foundational economy and Doughnut economics.Sustainability: Science, Practice and Policy,18(1), pp.171-186.

Washington, H. and Maloney, M., 2020. The need for ecological ethics in a new ecological economics.Ecological Economics.169. p.106478.

Online

Bon, P., 2022. The Doughnut Economics: definition and critical analysis. Online. Available through: < https://bonpote.com/en/the-doughnut-economics-definition-and-critical-analysis/> Accessed from: 02/08/2023