Doughnut economics seeks to radically change how we measure economic performance. Coined by Kate Raworth, the noted author of “Doughnut Economics”, it derives its name from a doughnut-shaped diagram. The hole in the middle represents people’s basic needs (the “social foundation”), while the crust represents Earth’s “ecological ceiling”. The challenge is to satisfy the former without overshooting the latter.
I see this as humanity’s 21st century challenge; it is the direction of progress that we need to make this century
Kate Raworth, author of Doughnut Economics
According
to Raworth, the world faces an unprecedented challenge to meet the needs of all
people – while doing so within the means of the planet. For this to happen,
industry, and the finance that invests in it, needs to transform. Her approach
to understanding the world’s economic problems represents a new way of looking
at growth and development, highlighting high-income countries’ frequent
overshooting of carbon emissions, water and land use (and so on). No country that
overshoots these ecological ceilings – what economists call negative externalities
– can claim to be “developed”, according to the doughnut model.
For Raworth, how we solve the world’s problems in the coming
decades is vital: “I see this as humanity’s 21st century challenge; it is the
direction of progress that we need to make this century.”
The annual High Yield and Leveraged Finance Conference 2019 was
hosted by UK country head Anne Marie Verstraeten, bringing together 700 guests,
including prominent issuers and investors. It was the 15th event in the series,
this year focusing on the future of Europe and key investment themes for 2019.
