Operationalizing the Doughnut Economy: An Institutional Perspective

Abstract

Today, the world faces significant and complex challenges (economic, social, political, and environmental); the pandemic has further exacerbated these challenges and widened already-existing inequalities. Kate Raworth’s doughnut economy framework provides an alternate lens for considering economic development processes and local, national, and international policies. In this article, I discuss the doughnut economy framework from an institutionalist perspective. Given the global nature of the model, several challenges stand in the way of operationalizing it. After highlighting various pathways for putting the framework into action, I discuss risks and opportunities facing such approaches, along with broader institutional changes needed.

Keywords:

• doughnut economy
• indicators
• policy
• sustainable development
• Sustainable Development Goals (SDGs)

JEL Classification Codes:

• B52
• L26
• O10
• Q01
• Q57

Notes

1 No poverty; zero hunger; good health and well-being; quality education; gender equality; clean water and sanitation; affordable and clean energy; decent work and economic growth; industry, innovation, and infrastructure; reduced inequalities; sustainable cities and communities; responsible consumption and production; climate action; life below water; life on land; peace, justice, and strong institutions; and partnerships for the goals (https://sdgs.un.org/goals).

2 Canada, France, Germany, Italy, Japan, United Kingdom, and United States. The European Union is also a member.

3 Raworth’s indicators for social foundation: % lacking access to electricity/clean cooking facilities; % without access to improved drinking water/improved sanitation; % undernourished; under-5 mortality rate; life expectancy at birth; % adult literacy; children (aged twelve to fifteen) out of school; % living on less than $3.10/day; % young people (fifteen to twenty-four) seeking but not able to find work; Corruption Perceptions Index; homicide rate per 10,000; Voice & Accountability Index; Palma ratio of 2+; gender representation gap in national parliaments; worldwide gender earnings gap; global urban population living in slum housing in developing countries; population stating they are without someone to count on in times of trouble; population without Internet access (Raworth 2017, 255).

4 Raworth’s indicators for ecological ceiling: atmospheric carbon dioxide ppm; average saturation of calcium carbonate at ocean surface, as % of pre-industrial levels; phosphorus and reactive nitrogen applied to land as fertilizer; blue water consumption; area of forested land as % of forested land prior to human alteration; rate of species extinction per million species per year; ozone concentration in stratosphere, in Dobson units (Raworth 2017, 258).

5 The deep design workshop guide is accessible at https://doughnuteconomics.org/tools/191 (DEAL Team 2022).

Additional information

Notes on contributors

Tonia Warnecke

Tonia Warnecke is George D. and Harriet W. Cornell Chair and Professor of Social Entrepreneurship at Rollins College.