COMPARATIVE SYNOPSIS

DOUGHNUT ECONOMICS – ECONOMY FOR THE COMMON GOOD

Doughnut ECG
Theory Holistic Holistic
Innovative insights Cognitive linguistics, psychology, ecology, (social) psychology, sociology, educational
from other feminism, Earth-system science, commons science, neurobiology, evolutionary biology,
disciplines theory, systems thinking, institutional game theory, commons theory, feminism,
economics, biomimicry, sociology, history, ecology, system theory, ethics and philosophy.
ethics.
Economics Not a matter of discovering economic laws Question is not: How does the economy function
(they don’t exist) but a question of creating (by nature)? But: How can we design it in order
effective economic design to be functional?
Model structure 7 ways to think like a 21st century economist 20 cornerstones of the economic order or
tomorrow
Approach To set out new ways of thinking, rather than To advocate for and bring about a new
advocate specific policies or institutions framework of policies and institutions
Mindset & The economy should be in service to meet the Holistic thinking, economy is a means to serve
Paradigm needs of all within the means of the planet. higher goals; Markets are designed 100% by
Economic institutions – from money to humans (social subsystems).
markets – are designed and can be redesigned.
Sectors included 4 core forms of economic provisioning: Fields of economic activities: self-sufficiency,
household, commons, market, state. gift economy, markets, commons and state.
Core The Doughnut as the 21st century goal: to Invert goal (common good) & means (money)
meet the needs of all within the means of the chrematistiké → oikonomia
planet; the economy becomes the means. (Aristotle)
Goal (economy) Human prosperity in a flourishing web of life Common Good, comprising the whole living
– living in the Doughnut world, democratically defined
Means Regenerative and distributive economic Laws, incentives, role models, education and
design consciousness building.
Success The metrics of the Doughnut, adapted to GDP → Common Good Product
Measurement relevant multiple scales: household, Profit → CG Balance Sheet
enterprise, city, nation, global. ROI → Common Good Exam
GDP Growth GDP becomes a response variable, and is GDP growth = irrelevant (except as a reference
likely to roughly follow an S curve over time for e. g. sovereign debt or money supply)
Cooperation – We typically engage in conditional Reward cooperation, incentivize negatively
competition reciprocity, and both compete and collaborate „counter-petition“ and (more softly) competition
Care Work The household is the core economy. Caring Public service, paid, incentives for equal
work should be recognised, rewarded, and engagement of all genders
redistributed between women and men.
Working time Shorter working weeks are one way to 20 hours (degressively) in order to redistribute
redistribute access to paid work, while time to self-sufficiency, relationships, commons,
creating time for the commons, household, community engagement, and having a good life
and leisure.
Inequality The 20th century addressed inequality through Balancing feedback mechanisms for:
redistributing income - income
The 21st century should also consider - property
addressing it through pre-distributing the - inheritance (democratic endowment)
sources of wealth creation - size of companies
Property Pre-distribute the ownership of sources of Diversity of properties:
wealth creation including: health & education; private, public, collective, social, use rights, no
energy systems; information systems; use even (nature’s rights), ...
enterprise ownership; land and housing; Conditions and limitations for all types of
technology; the power to create money property
Corporate property Enable enterprise that is employee-owned, Common Good Balance Sheet enhances
cooperatively owned, or other forms of deconcentration of decision and ownership
distributive enterprise ownership power + negative feedback mechanisms
CSR, corporate Assess a company’s purpose, governance, Common Good Balance Sheet (DNA for all
governance networks, ownership and finance: are they legal forms), linked to all kinds of positive/
generative or extractive? (Kelly, 2012). negative incentives: taxes, tariffs, interests,
Possible frameworks include ECG, Reporting public procurement, research projects, ...
3.0, Future Fit Benchmark.
Advertising People do not have ‘fixed preferences’ but - Ban advertising in mass media
rather have fluid values that can be daily - Product info system (CGBS)
activated, including by advertising.
Money creation The design of money – its creation, its From positive money to sovereign money
character and its use – shapes human
behaviour, relationships, and distribution
Monetary System Shift from today’s monetary monoculture to Money is a public good: Democratic design and
an ecosystem of currency design central banks, global reserve (ICU) and local
complementary currencies
Interest Interest runs counter to the thermodynamics Negative interest system for savers, average zero
of life. Could a demurrage-bearing currency interest for investing companies (combined with
be designed that stimulates regenerative and common good exam, also to prevent inflation).
distributive economic investment?
Banks Promote values-based banking that aligns common good banks and stock markets
with an enterprise’s ‘living purpose’. (private and public),
Focus state-led development banks on long- applying ethical creditworthiness assessment
term transformative investments
Technology Support and enable eg open-source software Technology is a means, too.
and hardware, creative-commons licencing, as Social innovations are more important at the
a means to pre-distributing access to the moment: non-violent communication, systemic
sources of wealth creation consensus principle, democratic conventions, ...
Ecology Work with and within the cycles of the living Common Good Exam and CBS,
world: regenerative design, cradle-to-cradle, Cradle-to-cradle, Ecological Footprint,
Open Source Circular Economy (OSCE) Ecological Tax Reform, Global Resource
Management, Ecological Human Rights, ...
Resilience Diversity, redundancy, distributed networks. Decentral structures, diversity, balancing
Resilience through evolution: diversify – feedback mecanisms, citizen participation
select – amplify. (sovereign democracy)
What really matters Living in the Doughnut is a precondition for 8 new contents at school: feelings,
what really matters: human flourishing – as communication (NVC), values, democracy,
set out eg by Manfred MaxNeef’s nature, body, handicraft, art
fundamental human needs.
Power sources Recognise the power of visual and verbal Flourishing relationships:
framing. Choose carefully the words and - with myself (body, mind & soul)
pictures that you draw, use and teach. - other humans
- nature
Since systems evolve, we all contribute to - the bigger whole = meaning & spirituality
system evolution in what we do.

Don’t be an optimist if it makes you relax.

Kate Raworth & Christian Felber, 20 March 2018