A healthy economy should be designed to thrive, not grow | Kate Raworth

Summary

The speaker challenges the traditional notion of economic growth as the ultimate goal, advocating for a shift in mindset towards economies that prioritize human thriving over mere expansion. They introduce the 'doughnut' model, a visual representation of a balanced approach to meeting human needs within ecological limits, highlighting the need for regenerative and distributive economic design. This thought-provoking talk calls for innovative solutions to overcome our growth obsession and create a sustainable and equitable future.

Takeaways

• 🧒 The script begins with an analogy of a baby learning to crawl, illustrating the basic human direction of progress as moving forward and upwards.
• 📈 It challenges the traditional belief that economic progress should always be represented by an ever-rising line of growth, suggesting a need to reimagine progress for thriving economies.
• 💡 The concept of GDP, invented in the 1930s, became the main goal of policymaking, leading to an obsession with growth as the solution to economic problems.
• 📚 Reference is made to W.W. Rostow's 'The Stages of Economic Growth: A Non-Communist Manifesto', which outlines five stages of economic growth and the continuous pursuit of it.
• 🛫 The metaphor of an airplane that can never land is used to describe our current economies, which are addicted to endless growth, both financially and politically.
• 🌍 The script highlights the negative impacts of this growth, such as increased inequality and environmental degradation, destabilizing the planet.
• 💼 It points out that we are socially addicted to growth due to a century of consumer propaganda, which has led people to believe in the transformative power of consumption.
• 🌳 The need for a new economic model is emphasized, one that is regenerative and distributive by design, focusing on meeting the needs of all people within the means of the planet.
• 🍩 The 'doughnut' model is introduced as a visual representation of this new economic model, with a social foundation and an ecological ceiling, aiming for a balance between the two.
• 🔄 The script calls for economies that work within the cycles of the living world, using resources regeneratively, and technologies that distribute wealth and knowledge more equitably.
• 🚀 It concludes by urging for financial, political, and social innovations to overcome the dependency on growth, focusing instead on thriving within the social and ecological boundaries.

Q & A

What is the basic direction of progress that humans recognize according to the script?

The basic direction of progress that humans recognize is the motion of moving forwards and upwards, as illustrated by the example of a baby learning to crawl.

Why do we associate economic progress with an ever-rising line of growth?

We associate economic progress with an ever-rising line of growth because of our belief in the narrative of evolution, where progress is depicted as moving from primitive to advanced stages, symbolized by the transition from crawling to standing and walking upright.

What does the speaker suggest is the problem with economies that focus solely on growth?

The speaker suggests that the problem with economies that focus solely on growth is that they may not necessarily contribute to human thriving, and instead, can lead to divisiveness and environmental degradation.

What is the origin of the obsession with economic growth as described in the script?

The obsession with economic growth originated from the invention of GDP in the 1930s, which soon became the overriding goal of policymaking, influencing governments to believe that more growth is the solution to economic problems.

What are the five stages of economic growth as outlined by W.W. Rostow in his book?

The five stages of economic growth according to W.W. Rostow are: 1) traditional society, 2) preconditions for takeoff, 3) takeoff, 4) drive to maturity, and 5) the age of high-mass consumption.

Why does the speaker argue that the pursuit of endless growth is not sustainable?

The speaker argues that the pursuit of endless growth is not sustainable because it leads to financial, political, and social addictions that destabilize the planet and widen inequality, without addressing the real needs of people and the environment.

What is the 'doughnut' model of economic progress proposed by the speaker?

The 'doughnut' model of economic progress is a visual representation where the hole in the middle represents the shortfall of life's essentials for people, and the outer circle represents the ecological ceiling beyond which we risk destabilizing the planet. The goal is to ensure that all people's needs are met without exceeding the planet's boundaries.

How does the speaker describe the current state of the global economy in relation to the 'doughnut' model?

The speaker describes the current state of the global economy as being far from balanced, with millions of people falling short on basic needs while also overshooting planetary boundaries, indicating a simultaneous shortfall and overshoot.

What are the key characteristics of the economies that the speaker suggests we need to create?

The speaker suggests we need to create economies that are regenerative and distributive by design, focusing on meeting human needs within ecological limits, and ensuring that wealth, knowledge, and power are more equitably distributed.

What role does the speaker believe technology can play in creating a more balanced and regenerative economy?

The speaker believes that technology, including AI, blockchain, the Internet of Things, and material science, can play a crucial role in creating a more balanced and regenerative economy if harnessed in service of distributive and regenerative design.

How does the speaker relate the concept of growth in nature to the concept of economic growth?

The speaker relates the concept of growth in nature to economic growth by pointing out that in nature, growth is a phase that leads to maturity, not an endless process. This suggests that the idea of economies growing forever is contrary to the natural cycles and is unsustainable.