Why is doughnut economics important for a circular future?

Doughnut economics is an economic model developed by Kate Raworth, who uses a doughnut as a metaphor for the framework of human prosperity.

The hole of the doughnut represents the proportion of people that lack access to the essentials of life such as housing, food, water, healthcare and education. Outside of the crust, on the other hand, represents overshooting ecological barriers. These have resulted in the exhaustion of ecological resources through biodiversity loss and climate change, products of excessive economic growth. Therefore, the doughnut itself represents a perfect balance for humanity where everyone’s basic social needs are met without exploitation and overuse of the planet’s resources.

Raworth proposes that economic decisions have been made at the cost of humanity and our planet. The economist urges us to aim at achieving an environmentally safe and socially just society. Furthermore, she proposes a transition from degenerative contemporary economics to a regenerative and distributive economy. Many forward-thinking cities are also using doughnut economics as their compass for a circular future.