Doughnut Economy
Is this the future?
Covid-19 is going to change our lives forever, well it pretty much as. From temperature checks in malls to us wearing face masks, all has changed in few months of 2020. Business models are are going to change in the coming months. More people will start working from their homes. Recently,I came upoon a very interesting article. It was about Amsterdam embracing new economic model post Covid-19. It is the doughnut model of economy. Just to be clear it has no relationship with the actual doughnut (LOL!!!). Experts have been writing pre Covid-19 that neo-liberalism has lost its force. According to them, the pandemic has just accelerated the process, but the same experts also said the same during the financial crises ,unfortunately it only got stronger so lets be wary of that as well. What is a doughnut economy? What are the major components of it?
Doughnut economy’s focus is basically providing essentials that humans need to live a decent life. The minimum needs are derived from U.N sustainable development goals (SDG). All the SDG are agreed by world leaders. So just imagine that there is a hole in the middle, that hole represents people whose necessities are not being fullfilled. The outer hole in the model represents all the boundaries which humans should not destroy in pursuit of common needs. The outer ring includes climate, soils, oceans, the ozone layer , fresh water and abundant biodiversity. Between the two rings is the good stuff , where everyone’s needs and that of planet are being met. This model aims to provide all the necessities but without overshooting the outer ring. Overshooting the outer ring will casue climate breakdown along with other catastrophes.
Columnist George Monbiot has described it as “breakthroigh alternative to growth economics”. The world needs this model. We have destroyed our natural resources in the name of “economic development”. This model promotes economic development but without making our precious resources deplete. It’s a fantastically powerful idea. Where economics has fallen short, natural scientists have stepped in with a clear, quantified depiction of boundaries within which the global economy should operate — boundaries described not in monetary metrics, but in natural metrics fundamental to the planet’s resilience. If we analyse this model there is no country let me repeat myself NO country is a developed nation as the current industrialised nations have massively overshotted
Many millions of people still lack life’s essentials, living daily with hunger, illiteracy, insecurity and voicelessness. At the same time, humanity’s collective pressure on the planet has already overshot at least four planetary boundaries: for climate change, land conversion, fertilizer use, and biodiversity loss.
Why out of a blue this model is being discussed? DUE TO COVID-19, simple as that. Although people say that this disease is an equalizer as rich people are getting it as well but unfortunately the truth is totally different. People from cities have migrated to their fancy homes based in towns so that they do not get the virus. On the other side the poor are struggling to have food, even the middle class is now finding it difficult to have food on table. Social distancing is only for the privilaged ones. The common person who works at hypermarket, who is a daily wager, who is a nurse do not have this privilage. Having food on table, not thinking about paying rent, attending online classes and watching netflix are all privilages of only a few ones on this planet. We need to stop and look why is the current economic is falling us. This model is all based on creating wealth and that wealth is cocnentrated in only a few powerful people. Now, please do not get it wrong the doughnut model does discourage wealth creation. It stresses that wealth should be created in ways that the outer ring does not overshoot and people in all segments of society should get a proper share in the wealth creation.
Amsterdam has made up plans of following this model, so should the other countries.
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Happy Eid to everyone who is celebrating it!!!
