On ‘Doghnut Economics’: Reflections on its Implications and Relevant Policies

Abstract The latest developments in the science behind environmental and climate change have demonstrated a failure of the mainstream economics model to offer strategies and policies to circumvent and revert such issues. Recently, Oxford economist Kate Raworth (2022[2017]) has produced The Doughnut Economics Model that is portraying the economy as a system embedded in the social and ecological boundaries, and it is based on the Sustainable Development Goals elaborated by The United Nations and the nine planetary boundaries espoused by Rockstrom et al (2009). The model is fundamented by seven principles. One of the most important principles is the challenge brought to Gross Domestic Product as an indicator of economic growth, whilst prosperity can be achieved through meeting the needs of the people and planet. This paper investigates the Doughnut Economics model as a heterodox economics proposal to ensure a sustainable development of our economies and societies and its conceptual and pragmatic, policy implications. The paper urges caution regarding the necessary role of a ‘benevolent state’ in applying policies that help nations to ‘live’ and function in the Doughnut, and brings evidence that, globally, very few countries or cities are applying The Doughnut’s economic, social and ecological principles.