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1/30/21

The Netherlands: New Economic Theory: Could Amsterdam's New Economic Theory Replace Capitalism? - by Ciara Nugent

In April 2020, during the first wave of COVID-19, Amsterdam’s city government announced it would recover from the crisis, and avoid future ones, by embracing the theory of “doughnut economics.” Laid out by British economist Kate Raworth in a 2017 book, the theory argues that 20th century economic thinking is not equipped to deal with the 21st century reality of a planet teetering on the edge of climate breakdown. Instead of equating a growing GDP with a successful society, our goal should be to fit all of human life into what Raworth calls the “sweet spot” between the “social foundation,” where everyone has what they need to live a good life, and the “environmental ceiling.” By and large, people in rich countries are living above the environmental ceiling. Those in poorer countries often fall below the social foundation. The space in between: that’s the doughnut.

Amsterdam’s ambition is to bring all 872,000 residents inside the doughnut, ensuring everyone has access to a good quality of life, but without putting more pressure on the planet than is sustainable. Guided by Raworth’s organization, the Doughnut Economics Action Lab (DEAL), the city is introducing massive infrastructure projects, employment schemes and new policies for government contracts to that end. Meanwhile, some 400 local people and organizations have set up a network called the Amsterdam Doughnut Coalition—managed by Drouin— to run their own programs at a grassroots level.

Now, Amsterdam is grappling with what the doughnut would look like on the ground. Marieke van Doorninck, the deputy mayor for sustainability and urban planning, says the pandemic added urgency that helped the city get behind a bold new strategy. “Kate had already told us what to do. COVID showed us the way to do it,” she says. “I think in the darkest times, it’s easiest to imagine another world.”

Read more at: Could Amsterdam's New Economic Theory Replace Capitalism? | Time

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