The city of Amsterdam, is thinking about its economy in a different way as it plots a way back from the Covid pandemic.
While straining to keep citizens safe in the Dutch capital, municipality officials and the British economist Kate Raworth from Oxford University’s Environmental Change Institute have also been plotting how the city will rebuild in a post-Covid-19 world.
The conclusion? Out with the global attachment to economic growth and laws of supply and demand, and in with the so-called doughnut model devised by Raworth as a guide to what it means for countries, cities and people to thrive in balance with the planet. The principles are described in Raworth’s 2017 bestselling book, Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist.
The inner ring of her donut sets out the minimum we need to lead a good life, derived from the UN’s sustainable development goals and agreed by world leaders of every political stripe. It ranges from food and clean water to a certain level of housing, sanitation, energy, education, healthcare, gender equality, income and political voice. Anyone not attaining such minimum standards is living in the doughnut’s hole.
The outer ring of the doughnut, where the sprinkles go, represents the ecological ceiling drawn up by earth-system scientists. It highlights the boundaries across which human kind should not go to avoid damaging the climate, soils, oceans, the ozone layer, freshwater and abundant biodiversity.
Between the two rings is the good stuff: the dough, where everyone’s needs and that of the planet are being met.
The model is being used by the municipality of Amsterdam as the starting point for public policy decisions, the first city in the world to make such a commitment.
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