Roger OngCircular Economy and Doughnut Economy are two different models of how economies can be reformed. But because they strongly focus on prosperity that is beneficial for the environment, they complement each other exceptionally well.
Circular Economy Model
Circular Economy talks about circulating resources within an economy without creating waste. Resources include organic ones that can be regenerated to benefit the environment, and inorganic ones that can be recovered and put back into manufacturing processes. The model also believes that waste creation is an error in our systems. The Circular Economic model is intuitive as a solution to our linear economic model (take-make-waste).
Doughnut Economy Model
Doughnut Economy requires us to seek a balance between two boundaries. We need to stay above a social foundation for our civilizations to prosper, but without crossing the ecological ceiling where nature begins to decline. We want to stay in the area between the circles, thus “doughnut” (as in the diagram.) It is where we can flourish together with nature.
Why Circular Economy and Doughnut Economy complement each other
The two models are based on one essential concern: the need to account for nature.
Arguably, these two models update our current understanding of economic health. Most of our economies run on capitalism, which assumes that how much we make and sell is the only worthy measurement of how well countries are doing. It believes there’d be limitless resources we can squander for limitless growth.
But in the face of global issues such as climate crisis and food security, we are beginning to realize that capitalism is outdated. We need to start accounting for nature and well-being as well.
The Circular Economy offers strategies that we can stay below the ecological ceiling. One can even break these strategies into ten categories, which have been adopted by numerous businesses worldwide.
The Doughnut Economy reminds us of the balance between human development and nature. Seeking either extreme is detrimental, and the model shows us that a nature-human coexistence is possible.
Time for new economies
Too long have we given capitalism the reins of our civilizations’ progress, which sacrificed limited resources (with devastating effects) and the well-being of our fellow human beings. Since “business as usual” is not a choice, the Circular Economy and Doughnut Economy models offer us a new way to prosper ethically.
