by Kate Raworth
I am extremely grateful to Alan Doran, Carl Gombrich, Andrew Graham, George Monbiot and Garry Peterson for reading and giving excellent comments on drafts of the whole text. Special thanks also to Richard King for outstanding data analysis, Marcia Mihotich for the beautiful graphics, and Christian Guthier for the iconic Doughnut images.
I received insightful comments, ideas and suggestions for the book from many generous people, including Adam Alagiah, Myles Allen, Graham Bannock, Alex Cobham, Sarah Cornell, Anna Cowen, Ian Fitzpatrick, Joss Floyd, Antonio Hill, Erik Gómez-Baggethun, Tony Greenham, Hugh Griffith, Emily Jones, William Kamkwamba, Finn Lewis, Bernard Lietaer, Nick Lloyd, Eric Lonergan, André Maia Chagas, George Marshall, Clive Menzies, Forrest Metz, Asher Miller, Tom Murphy, Cathy O’Neill, Rob Patterson, Joshua Pearce, Johan Rockström, Emma Smith, Niki Sporrong, Robin Stafford, Will Steffen, Joss Tantram, Ken Webster, Tommy Wiedmann, Rachel Wilshaw and John Ziniades. A big thank-you especially to Janine Benyus, Sam Muirhead and Yuan Yang for the inspiring conversations that we had in interviews for this book.
I greatly appreciate the support I have had from many colleagues and friends, among them Sasha Abramsky, Al-Hassan Adam, Steve Bass, Sarah Best, Sumi Dhanarajan, Konstantin Dierks, Joshua Farley, Flora Gathorne-Hardy, Maja Göpel, Alissa Goodman, Duncan Green, Thalia Kidder, Sarah Knott, Diana Liverman, Ruth Mayne, Eka Morgan, Annalise Moser, Tim O’Riordan, Angelique Orr, Trista Patterson, Pete Shepherd, Claire Shine, Kitty Stewart, Julia Tilford, Tom Thornton, Katherine Trebeck, Aris Vrettos, Kevin Watkins, Stewart Wallis, Tim Weiskel, Anders Wijkman and Rebecca Wrigley. In the toughest of writing times, five people gave me outstanding advice: my deepest thanks to Phil Bloomer, Alan Buckley, Jo Confino, Julian Masters and Jo de Waal.
In years of exploring new economic thinking I have been inspired by many thinkers whose writing gave me those Aha! moments from which there is no turning back: thank you Michel Bauwens, Eric Beinhocker, John Berger, Janine Benyus, David Bollier, Ha-Joon Chang, Robert Costanza, Herman Daly, Diane Elson, Nancy Folbre, John Fullerton, Yann Giraud, Sally Goerner, Tim Jackson, Steve Keen, Marjorie Kelly, George Lakoff, Bernard Lietaer, Hunter Lovins, Manfred Max-Neef, Donella Meadows, Mary Mellor, Elinor Ostrom, Jeremy Rifkin, Johan Rockström, Amartya Sen, Juliet Schor, Fritz Schumacher, Will Steffen, John Sterman, Arron Stibbe and Ken Webster.
I am deeply grateful to my parents, Jenny and Ricky Raworth, and to my sister Sophie, for their unwavering support for my economic adventures.
Last and most, thank you to my partner in life Roman Krznaric, without whose love, conversation and co-parenting I would never have written this book. And to our children Siri and Cas who, like all children, deserve to thrive in a safe and just twenty-first century.
INDEX
The page references in this index correspond to the printed edition from which this ebook was created. To find a specific word or phrase from the index, please use the search feature of your ebook reader.
Page numbers in italics denote illustrations
A
Aalborg, Denmark, 290
Abbott, Anthony ‘Tony’, 31
ABCD group, 148
Abramovitz, Moses, 262
absolute decoupling, 260–61
Acemoglu, Daron, 86
advertising, 58, 106–7, 112, 281
Agbodjinou, Sénamé, 231
agriculture, 5, 46, 72–3, 148, 155, 178, 181, 183
Alaska, 9
Alaska Permanent Fund, 194
Alperovitz, Gar, 177
alternative enterprise designs, 190–91
altruism, 100, 104
Amazon, 192, 196, 276
Amazon rainforest, 105–6, 253
American Economic Association, 3
American Enterprise Institute, 67
American Tobacco Corporation, 107
Andes, 54
animal spirits, 110
Anthropocene epoch, 48, 253
anthropocentrism, 115
Apertuso, 230
Apple, 85, 192
Archer Daniels Midland (ADM), 148
Arendt, Hannah, 115–16
Argentina, 55, 274
Aristotle, 32, 272
Arrow, Kenneth, 134
Articles of Association and Memoranda, 233
Arusha, Tanzania, 202
Asia Wage Floor Alliance, 177
Asian financial crisis (1997), 90
Asknature.org, 232
Athens, 57
austerity, 163
Australia, 31, 103, 177, 180, 211, 224–6, 255, 260
Austria, 263, 274
availability bias, 112
AXIOM, 230
Axtell, Robert, 150
Ayres, Robert, 263
B
B Corp, 241
Babylon, 13
Baker, Josephine, 157
balancing feedback loops, 138–41, 155, 271
Ballmer, Steve, 231
Bangla Pesa, 185–6, 293
Bangladesh, 10, 226
Bank for International Settlements, 256
Bank of America, 149
Bank of England, 145, 147, 256
banking, see under finance
Barnes, Peter, 201
Barroso, José Manuel, 41
Bartlett, Albert Allen ‘Al’, 247
basic income, 177, 194, 199–201
basic personal values, 107–9
Basle, Switzerland, 80
Bauwens, Michel, 197
Beckerman, Wilfred, 258
Beckham, David, 171
Beech-Nut Packing Company, 107
behavioural economics, 11, 111–14
behavioural psychology, 103, 128
Beinhocker, Eric, 158
Belgium, 236, 252
Bentham, Jeremy, 98
Benyus, Janine, 116, 218, 223–4, 227, 232, 237, 241
Berger, John, 12, 281
Berlin Wall, 141
Bermuda, 277
Bernanke, Ben, 146
Bernays, Edward, 107, 112, 281–3
Bhopal gas disaster (1984), 9
Bible, 19, 114, 151
Big Bang (1986), 87
billionaires, 171, 200, 289
biodiversity, 10, 46, 48–9, 52, 85, 115, 155, 208, 210, 242, 299
as common pool resource, 201
and land conversion, 49
and inequality, 172
and reforesting, 50
biomass, 73, 118, 210, 212, 221
biomimicry, 116, 218, 227, 229
bioplastic, 224, 293
Birmingham, West Midlands, 10
Black, Fischer, 100–101
Blair, Anthony ‘Tony’, 171
Blockchain, 187, 192
blood donation, 104, 118
Body Shop, The, 232–4
Bogotá, Colombia, 119
Bolivia, 54
Boston, Massachusetts, 3
Bowen, Alex, 261
Bowles, Sam, 104
Box, George, 22
Boyce, James, 209
Brasselberg, Jacob, 187
Brazil, 124, 226, 281, 290
bread riots, 89
Brisbane, Australia, 31
Brown, Gordon, 146
Brynjolfsson, Erik, 193, 194, 258
Buddhism, 54
buen vivir, 54
Bullitt Center, Seattle, 217
Bunge, 148
Burkina Faso, 89
Burmark, Lynell, 13
business, 36, 43, 68, 88–9
automation, 191–5, 237, 258, 278
boom and bust, 246
and circular economy, 212, 215–19, 220, 224, 227–30, 232–4, 292
and complementary currencies, 184–5, 292
and core economy, 80
and creative destruction, 142
and feedback loops, 148
and finance, 183, 184
and green growth, 261, 265, 269
and households, 63, 68
living metrics, 241
and market, 68, 88
micro-businesses,
9
and neoliberalism, 67, 87
ownership, 190–91
and political funding, 91–2, 171–2
and taxation, 23, 276–7
workers’ rights, 88, 91, 269
butterfly economy, 220–42
C
C–ROADS (Climate Rapid Overview and Decision Support), 153
C40 network, 280
calculating man, 98
California, United States, 213, 224, 293
Cambodia, 254
Cameron, David, 41
Canada, 196, 255, 260, 281, 282
cancer, 124, 159, 196
Capital Institute, 236
carbon emissions, 49–50, 59, 75
and decoupling, 260, 266
and forests, 50, 52
and inequality, 58
reduction of, 184, 201, 213, 216–18, 223–7, 239–41, 260, 266
stock–flow dynamics, 152–4
taxation, 201, 213
Cargill, 148
Carney, Mark, 256
Caterpillar, 228
Catholic Church, 15, 19
Cato Institute, 67
Celts, 54
central banks, 6, 87, 145, 146, 147, 183, 184, 256
Chang, Ha-Joon, 82, 86, 90
Chaplin, Charlie, 157
Chiapas, Mexico, 121–2
Chicago Board Options Exchange (CBOE), 100–101
Chicago School, 34, 99
Chile, 7, 42
China, 1, 7, 48, 154, 289–90
automation, 193
billionaires, 200, 289
greenhouse gas emissions, 153
inequality, 164
Lake Erhai doughnut analysis, 56
open-source design, 196
poverty reduction, 151, 198
renewable energy, 239
tiered pricing, 213
Chinese Development Bank, 239
chrematistics, 32, 273
Christianity, 15, 19, 114, 151
cigarettes, 107, 124
circular economy, 220–42, 257
Circular Flow diagram, 19–20, 28, 62–7, 64, 70, 78, 87, 91, 92, 93, 262
Citigroup, 149
Citizen Reaction Study, 102
civil rights movement, 77
Cleveland, Ohio, 190
climate change, 1, 3, 5, 29, 41, 45–53, 63, 74, 75–6, 91, 141, 144, 201
circular economy, 239, 241–2
dynamics of, 152–5
and G20, 31
and GDP growth, 255, 256, 260, 280
and heuristics, 114
and human rights, 10
and values, 126
climate positive cities, 239
closed systems, 74
coffee, 221
cognitive bias, 112–14
Colander, David, 137
Colombia, 119
common-pool resources, 82–3, 181, 201–2
commons, 69, 82–4, 287
collaborative, 78, 83, 191, 195, 196, 264, 292
cultural, 83
digital, 82, 83, 192, 197, 281
and distribution, 164, 180, 181–2, 205, 267
Embedded Economy, 71, 73, 77–8, 82–4, 85, 92
knowledge, 197, 201–2, 204, 229, 231, 292
commons
and money creation, see complementary currencies
natural, 82, 83, 180, 181–2, 201, 265
and regeneration, 229, 242, 267, 292
and state, 85, 93, 197, 237
and systems, 160
tragedy of, 28, 62, 69, 82, 181
triumph of, 83
and values, 106, 108
Commons Trusts, 201
complementary currencies, 158, 182–8, 236, 292
complex systems, 28, 129–62
complexity science, 136–7
Consumer Reaction Study, 102
consumerism, 58, 102, 121, 280–84
cooking, 45, 80, 186
Coote, Anna, 278
Copenhagen, Denmark, 124
Copernicus, Nicolaus, 14–15
copyright, 195, 197, 204
core economy, 79–80
Corporate To Do List, 215–19
Costa Rica, 172
Council of Economic Advisers, US, 6, 37
Cox, Jo, 117
cradle to cradle, 224
creative destruction, 142
Cree, 282
Crompton, Tom, 125–6
cross-border flows, 89–90
crowdsourcing, 204
cuckoos, 32, 35, 36, 38, 40, 54, 60, 159, 244, 256, 271
currencies, 182–8, 236, 274, 292
D
da Vinci, Leonardo, 13, 94–5
Dallas, Texas, 120
Daly, Herman, 74, 143, 271
Danish Nudging Network, 124
Darwin, Charles, 14
Debreu, Gerard, 134
debt, 37, 146–7, 172–3, 182–5, 247, 255, 269
decoupling, 193, 210, 258–62, 273
defeat device software, 216
deforestation, 49–50, 74, 208, 210
degenerative linear economy, 211–19, 222–3, 237
degrowth, 244
DeMartino, George, 161
democracy, 77, 171–2, 258
demurrage, 274
Denmark, 180, 275, 290
deregulation, 82, 87, 269
derivatives, 100–101, 149
Devas, Charles Stanton, 97
Dey, Suchitra, 178
Diamond, Jared, 154
diarrhoea, 5
differential calculus, 131, 132
digital revolution, 191–2, 264
diversify–select–amplify, 158
double spiral, 54
Doughnut model, 10–11, 11, 23–5, 44, 51
and aspiration, 58–9, 280–84
big picture, 28, 42, 61–93
distribution, 29, 52, 57, 58, 76, 93, 158, 163–205
ecological ceiling, 10, 11, 44, 45, 46, 49, 51, 218, 254, 295, 298
goal, 25–8, 31–60
and governance, 57, 59
growth agnosticism, 29–30, 243–85
human nature, 28–9, 94–128
and population, 57–8
regeneration, 29, 158, 206–42
social foundation, 10, 11, 44, 45, 49, 51, 58, 77, 174, 200, 254, 295–6
systems, 28, 129–62
and technology, 57, 59
Douglas, Margaret, 78–9
Dreyfus, Louis, 148
‘Dumb and Dumber in Macroeconomics’ (Solow), 135
Durban, South Africa, 214
E
Earning by Learning, 120
Earth-system science, 44–53, 115, 216, 288, 298
Easter Island, 154
Easterlin, Richard, 265–6
eBay, 105, 192
eco-literacy, 115
ecological ceiling, 10, 11, 44, 45, 46, 49, 51, 218, 254, 295, 298
Ecological Performance Standards, 241
Econ 101 course, 8, 77
Economics (Lewis), 114
Economics (Samuelson), 19–20, 63–7, 70, 74, 78, 86, 91, 92, 93, 262
Economy for the Common Good, 241
ecosystem services, 7, 116, 269
Ecuador, 54
education, 9, 43, 45, 50–52, 85, 169–70, 176, 200, 249, 279
economic, 8, 11, 18, 22, 24, 36, 287–93
environmental, 115, 239–40
girls’, 57, 124, 178, 198
online, 83, 197, 264, 290
pricing, 118–19
efficient market hypothesis, 28, 62, 68, 87
Egypt, 48, 89
Eisenstein, Charles, 116
electricity, 9, 45, 236, 240
and Bangla Pesa, 186
cars, 231
Ethereum, 187–8
and MONIAC, 75, 262
pricing, 118, 213
see also renewable energy
Elizabeth II, Queen of the United Kingdom, 145
Ellen MacArthur Foundation, 220
Embedded Economy, 71–93, 263
>
business, 88–9
commons, 82–4
Earth, 72–6
economy, 77–8
finance, 86–8
household, 78–81
market, 81–2
power, 91–92
society, 76–7
state, 84–6
trade, 89–90
employment, 36, 37, 51, 142, 176
automation, 191–5, 237, 258, 278
labour ownership, 188–91
workers’ rights, 88, 90, 269
Empty World, 74
Engels, Friedrich, 88
environment
and circular economy, 220–42, 257
conservation, 121–2
and degenerative linear economy, 211–19, 222–3
degradation, 5, 9, 10, 29, 44–53, 74, 154, 172, 196, 206–42
education on, 115, 239–40
externalities, 152
fair share, 216–17
and finance, 234–7
generosity, 218–19, 223–7
green growth, 41, 210, 243–85
nudging, 123–5
taxation and quotas, 213–14, 215
zero impact, 217–18, 238, 241
Environmental Dashboard, 240–41
environmental economics, 7, 11, 114–16
Environmental Kuznets Curve, 207–11, 241
environmental space, 54
Epstein, Joshua, 150
equilibrium theory, 134–62
Ethereum, 187–8
ethics, 160–62
Ethiopia, 9, 226, 254
Etsy, 105
Euclid, 13, 15
European Central Bank, 145, 275
European Commission, 41
European Union (EU), 92, 153, 210, 222, 255, 258
Evergreen Cooperatives, 190
Evergreen Direct Investing (EDI), 273
exogenous shocks, 141
exponential growth, 39, 246–85
externalities, 143, 152, 213
Exxon Valdez oil spill (1989), 9
F
Facebook, 192
fair share, 216–17
Fama, Eugene, 68, 87
fascism, 234, 277
Federal Reserve, US, 87, 145, 146, 271, 282
feedback loops, 138–41, 143, 148, 155, 250, 271
feminist economics, 11, 78–81, 160
Ferguson, Thomas, 91–2
finance
animal spirits, 110
bank runs, 139
Black–Scholes model, 100–101
boom and bust, 28–9, 110, 144–7
