Kate Raworth: A healthy economy should be designed to thrive, not grow
Kate Raworth - Renegade economist
Kate Raworth is passionate about making economics fit for the 21st century. Full bio
a baby learning to crawl?
parent knows, it's gripping.
of forwards and upwards,
of progress we humans recognize.
of evolution as well,
to Homo erectus, finally upright,
will take this very same shape,
whether or not they make us thrive,
especially in the richest countries,
we need to make
here together this century.
with growth come from?
of goods and services
the overriding goal of policymaking,
in the richest of countries,
to their economic problems
the 1960 classic by W.W. Rostow.
I have a first-edition copy.
A Non-Communist Manifesto."
five stages of growth:
where a nation's output is limited
its institutions and mindset;
of a banking industry,
for something beyond itself,
or a better life for the children;
is built into the economy's institutions
where you can have any industry you want,
the age of high-mass consumption
all the consumer goods they want,
airplane metaphor in this story,
into the sunset of mass consumerism,
in real income itself loses its charm?"
but he never answered it, and here's why.
candidate John F. Kennedy,
on the promise of five-percent growth,
to keep that plane flying,
it could ever be allowed to land.
of mass consumerism
to expect, demand and depend upon
politically and socially addicted to it.
because today's financial system
the highest rate of monetary return,
under constant pressure
growing market share and growing profits,
as debt bearing interest,
want to raise tax revenue
seems a sure way to do that.
their place in the G-20 family photo.
while the rest keep going,
by the next emerging powerhouse.
of consumer propaganda,
was created by Edward Bernays,
his uncle's psychotherapy
very lucrative retail therapy
to believe that we transform ourselves
than they currently get,
has been taking us.
than it was in 1950
prosperity to billions of people,
has also become incredibly divisive,
of the global one percent.
this delicately balanced planet
new destinations for growth.
so long as you choose growth.
a higher ambition, a far bigger one,
21st century challenge is clear:
extraordinary, unique, living planet
of nature can thrive.
to be measured with the metric of money.
a picture of what that might look like,
to the one doughnut
to be good for us.
radiating out from the middle.
on life's essentials.
education, political voice, housing
for a life of dignity and opportunity.
over the social foundation
overshoot that outer circle,
on this extraordinary planet
we acidify the oceans,
beyond the planetary boundaries
that have for the last 11,000 years
home to humanity.
to meet the needs of all
between the foundation and the ceiling.
once I'd drawn this picture
in many ancient cultures
of dynamic balance,
the Buddhist endless knot,
in the 21st century?
right now we are far from balanced,
at the same time.
millions or billions of people worldwide
on their most basic of needs.
four of these planetary boundaries,
of climate breakdown
and our planetary home.
saw this picture,
that their theories
generation to see this
of turning this story around.
that if growth creates inequality,
will even things up again.
will clean things up again.
this shortfall and overshoot together,
and distributive by design.
make them into stuff we want,
and then throw it away,
over planetary boundaries,
the cycles of the living world,
but used again and again,
is food for the next.
is popping up everywhere.
from Quito to Oslo,
of their electricity
are pioneering circular city design,
from one urban process
to Queensland, Australia,
regenerative by design,
distributive by design,
opportunities for making that happen,
knowledge and power in few hands.
our technologies and institutions
and empowerment to many.
and large-scale manufacturing,
digital platforms and 3D printing.
of intellectual property is being upended
peer-to-peer knowledge commons.
maximum rate of return
that are designed to generate
with those throughout their networks.
to material science,
in service of distributive design,
finance, energy, political voice
who need it most.
and distributive design
for the 21st-century economy.
Rostow's airplane ride?
the hope of endless green growth,
while resource use keeps falling.
This is a flight of fancy.
cannot be decoupled from resource use
within planetary boundaries.
about growth is unfamiliar,
our gardens to grow.
is a wonderful, healthy source of life.
like Ethiopia and Nepal today
at seven percent a year.
to the Amazon forest,
and they mature,
that when something tries to grow forever
that could buck this trend
political and social innovations
this structural dependency on growth,
focus on thriving and balance
boundaries of the doughnut.
makes you feel, well, bounded,
the source of their creativity.
that unleash our potential.
the potential for humanity to thrive
participation, belonging and meaning.
that we have got to get there,
About the speaker:Kate Raworth - Renegade economist
Kate Raworth is passionate about making economics fit for the 21st century.
Why you should listen
Kate Raworth writes: "I am a renegade economist, dedicated to rewriting economics so that it's fit for tackling the 21st century's grand challenge of meeting the needs of all people within the means of the planet. After 20 years of wrestling with policies based on outdated economic theories -- via the villages of Zanzibar to the headquarters of the UN and on the campaigning frontlines of Oxfam -- I realized that if the economic conversations taking place in parliaments, in boardrooms and in the media worldwide are going to change, then the fundamental economic ideas taught in schools and universities have to be transformed, too.
"I wrote Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist to be the book that I wish I could have read when I was a frustrated and disillusioned economics student myself. And silly though it sounds, it all starts with a doughnut (yes, the kind with a hole in the middle), which acts as a compass for 21st-century prosperity, inviting us to rethink what the economy is, and is for, who we are, and what success looks like."
Kate Raworth | Speaker | TED.com