Browsing through books: ‘Doughnut economics – Seven ways to think like a 21st century economist’ by Kate Raworth

I had come across Kate Raworths’ doughnut economics in a couple of instances, which for me is a sign to read a book in question. In addition, I had gathered that the book deals with the role and nature of economics, which in turn relate to my postdoc project on post-growth work. After all, the need for continuous economic growth stems from the institutions, such as economics departments, practicing economists, and political decision-makers.

What really kicked me into finally reading the book was the fact that Kate Raworth visited Helsinki in May. The organisers of the events encouraged people to familiarise with her thoughts, for example via a recent TED talk. I took the advice quite literally and browsed through her book, finally reading most of it.

The book is well written, flows beautifully, and has a compelling argument. It is organised around the idea that images have a lot of power. The simple supply-demand curve has influenced a countless number of people in universities’ economics basic courses. In fact, I have been influenced myself as a business school graduate in international business (for my undergraduate studies). So she knows what she is talking about. Moreover, that curve is not the only image that affects students, but many other uncontested “truths” are taught over and over again, although they were developed in the 19th or the 20th century and can be criticised heavily.

She points out that we live in the 21st century so we have 21st century issues, which I shortcut here in words ‘wicked socio-ecological problems.’ So why should we rely on old thinking that was not developed knowing contemporary issues and, moreover, has proven to be flawed in many ways? In the spirit of powerful images, Raworth introduces the doughnut: when keeping on the ring of a doughnut, we respect the social needs and the ecological ceiling.

Sadly, the ‘selfie of our time’, as she refers to it in her recent TED talk linked above, is not flattering.

Most of the book is devoted to providing evidence for her argument on why we need to shift our thinking to become more doughnut-like, instead of previously developed (neoclassical) economics. This is understandable, since the dominant thinking in many public institutions support economics that is not suitable for the 21st century. She backs up her arguments by examples that already try to respect the doughnut and bring on change. Some of the examples I know from before, and it was fascinating to see how she links them to the idea of 21st economics.

The book gets really interesting in the end, when she talks about regenerative economics and being agnostic about growth. As an avid reader of post-growth and degrowth literature, I was challenged by her idea to invite economic growth back to the negotiation table after we have cleared the hurdle of making socio-ecological well-being our top priority. She argues that growth could be possible and needed in some places, but it would need to respect the priority of keeping within the doughnut and not causing to fall to the empty centre nor to rise above its outer ring. This type of message seems wise, when engaging in dialogues with decision-makers in power at the moment. Any message is easier to communicate when not seeming too fundamental.

In Helsinki, she mentioned a couple if interesting things that I want to share. First, she said has no time to knock on shut doors. In short, she follows good energies. Not surprisingly economics departments have not been keen to invite her. Yet, critical (economics) students have been in touch with her. In addition, cities and urban planners have contacted her. Also designers have been interested in her ideas as well as some businesses and (progressive) business schools. Finally, political parties hungry for new economics have engaged in a dialogue with her, which is very promising.

Second, someone always comments to her that “this is nothing new”. She replies that yes, this is right. In fact, usually this is the case beyond this book or idea. But it is not enough to say things once, when we want change, here end the dominance of continuous economic growth. Indeed, her work is to serve as a communicator of ideas that resonate widely. For some this may seem like a celebrity cult, which is emphasised in our times by TED talks and alike. However, she (and many others) use the medium available to reach people so that she can reach open doors and follow good energies.

Third, Kate Raworth emphasised that the book may seem like an easy thing to write, but it was a struggle. She was about to give up before she came up with the leading idea of the power of images. I appreciate her honesty, since many books seem effortless, although they are a result of sweat and tears, sometimes even facing one’s deepest fears. But perhaps that is why they are so compelling.