Imagine an economy that is not a reckless race for profit, but a mindful journey toward a future where human well-being and planetary health merge into a dynamic balance. This is the challenge posed by Doughnut Economics, a model developed by British economist Kate Raworth, a lecturer at Oxford and Cambridge, which radically transforms our understanding of growth and prosperity. It adapts to the needs of the third millennium with an integrated, economic, and social approach.
At the heart of Doughnut Economics lies an idea as simple as it is revolutionary: the economy must operate within a “safe and just space.” This space is defined by two critical boundaries. On one side, the social foundation necessary to ensure every person has access to essential goods and services such as health care, education, and food security. On the other, the ecological ceiling, which warns us of the dangers of overexploiting natural resources.
Picture this model as a doughnut: the central hole represents the social shortfalls that no society should tolerate, while the outer edge marks the boundaries we cannot cross without endangering ecosystem stability. Unchecked economic growth risks eroding environmental limits, while falling below the social threshold leads to unsustainable inequalities.
Embracing this model means fundamentally rethinking traditional tools and methodologies. Conventional economic indicators—long dominant in political and financial decisions—must be complemented by metrics that incorporate social and environmental dimensions. This holistic vision not only enriches our concept of value but also paves the way for new investment opportunities capable of generating sustainable, long-term returns.
To bring about this change, a deep overhaul of internal policies and risk measurement tools is essential. We need new models that systematically integrate environmental and social variables, allowing for more accurate assessments of the impact of every economic decision. Although this process is complex, it is a vital investment to ensure an economic system that can not only survive crises but thrive in an increasingly interconnected world.
Doughnut Economics challenges us to move beyond the mindset of the “here and now” and invest in projects with long-term positive impact. In this vision, economic growth and social well-being feed into each other, creating a virtuous cycle that places humanity at the core of economic decision-making.
Embracing this new approach means taking responsibility for turning challenges into opportunities and limits into engines of innovation. It means looking beyond the traditional horizon of profit and investing in an economic model that combines growth with sustainability.
In this context, finance can become a true agent of change, guiding the transition toward a more equitable and resilient economy. Because, in the end, the word “challenge” comes before “doubt.”
