Doughnut Economics: Why the Economy Needs a Sugar Rush

Traditional economics often leaves us hungry for solutions between inequality and environmental collapse. But what if there’s a sweeter way to shape our future? Here is where Doughnut Economics comes into play, an unconventional model that proves thinking outside the (growth-obsessed) box doesn’t have to be a half-baked idea.

Doughnut Economics was first proposed by economist Kate Raworth in a 2012 Oxfam paper, A Safe and Just Space for Humanity, challenging GDP-focused growth models. She expanded the concept in her book, Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist, advocating for an economy that meets human needs within ecological limits. The model has gained global traction, endorsed by the UN and adopted by cities like Amsterdam, which uses it as a blueprint for sustainable urban policy. Other cities, including Brussels and Copenhagen, have since followed, demonstrating its real-world impact.

At the heart of Doughnut Economics is its distinctive visual model, a doughnut-shaped diagram that defines a "safe and just space" for humanity. The inner circle represents the social foundation, comprising twelve essential human requirements derived from extensive research into basic human welfare. These include fundamental needs like nutritious food, clean water, quality healthcare, decent housing, quality education, and political participation. When societies fail to meet these minimum thresholds, human deprivation occurs. 

Illustration of the visual framework "Doughnut Economy". © Recipes for Wellbeing

The outer ring marks the ecological ceiling: nine critical planetary boundaries identified by leading Earth system scientists. These boundaries represent the maximum sustainable limits for human activity in areas including climate change, freshwater use, biodiversity loss, and chemical pollution. Breaching these limits risks irreversible environmental damage that threatens the stability of our planet's life-support systems.

The space between these two boundaries, the doughnut itself, represents the safe and just operating space for humanity. This is where economic activity must occur: ensuring all people's basic needs are met without exceeding Earth's carrying capacity. The model's power comes from its synthesis of rigorous scientific research with clear economic principles, creating measurable indicators that go beyond traditional GDP metrics. By establishing these concrete parameters, Doughnut Economics provides policymakers with a practical tool to assess whether economic systems are delivering genuine prosperity within planetary means.

This model integrates the United Nations’ Sustainable Development Goals (SDGS) with planetary science, offering a holistic approach to sustainability. Unlike traditional economics, which often treats social and environmental issues separately, Doughnut Economics emphasises their interdependence, arguing that true prosperity requires balancing both human well-being and ecological health. By visualising these relationships, the framework provides a powerful tool for policymakers, businesses, and communities to redesign economies for long-term resilience and equity.

For decades, mainstream neo-classical economics has chased endless growth while ignoring the mounting costs to both people and planet. This narrow focus treats nature as an infinite resource and imagines people as perfectly rational, selfish actors - flawed assumptions that have contributed to climate crises, mass extinction, and widening inequality. But what if there were an economic model designed to work within real-world limits? This is exactly what Doughnut Economics offers. By shifting focus from perpetual growth to balance, it creates a framework where everyone's basic needs are met without exceeding Earth's ecological boundaries. The approach recognises what traditional economics has long ignored: that true prosperity requires both social justice and environmental sustainability.

We're already seeing this theory become practice in cities worldwide. Amsterdam has rebuilt its post-pandemic economy using doughnut principles, prioritising renewable energy and affordable housing. Copenhagen has redesigned its climate plans around these concepts, while grassroots movements are testing business models that value wellbeing over endless profit. These real-world examples prove the model can move beyond academic theory into practical policy.

Yet as climate breakdown accelerates and inequality deepens, the Doughnut’s fundamental premise grows more urgent: an economy must thrive within planetary boundaries while guaranteeing a social foundation for everyone. Its greatest impact may not be immediate policy shifts, but a radical redefinition of progress—away from extraction and toward regeneration and equity. The question isn’t just whether the Doughnut can scale, but whether we can afford to keep ignoring its lessons.