MODULE 3:

Economic
Sustainability
SocSci 13
The Economy, Society and
Sustainable Development
PARADIGMS
ENVIRONMENTAL SUSTAINABILITY
Doughnut Economics
Doughnut Economics
 Paradigm Shift
We have a responsibility to leave the living
world in a better state than we found it.
Degenerative Linear Economy
Circular Economy
 Degenerative Regenerative

✓ value is monetary ✓ transformation comes

✓ created by searching for
ever-lower costs and ever-
greater product sales ✓ Economic value is in
✓ “What’s my fair share to
take?”
from a new understanding
of value
wealth embodied in
human-made assets and in
people (individual skills to
community trust), in a
thriving biosphere (from
forest to ocean floor), and
in knowledge

✓ “What other benefits can

we layer into this so we
can give some away?”
ECONOMIC SUSTAINABILITY
 What enables human beings to thrive?

A world in which every person can lead

their life with dignity, opportunity and
community – and where we can all do so
within the means of our life-giving planet
Doughnut Economics
 Doughnut Economics

✓ a future that can provide for every

person’s needs while safeguarding the
living world on which we all depend

✓ human thriving depends upon planetary

thriving
Shortfall and Overshoot
 Paradigm Shift:

Good = forwards and up

to

Good = in-balance
 The focus of development, Sen argues, on should be
on ‘advancing the richness of human life, rather than
the richness of the economy in which human beings
live’. Instead of prioritising metrics like GDP, the aim
should be to enlarge people’s capabilities – such as to
be healthy, empowered and creative – so that they can
choose to be and do things in life that they value.

And realising those capabilities depends upon people

having access to the basics of life – adapted to the
context of each society – ranging from nutritious food,
healthcare and education to personal security and
political voice.
“How does the way that I shop, eat,
travel, earn a living, bank, vote and
volunteer affect my personal impact
on social and planetary
boundaries?”
Doughnut Economics
Five Factors that determine how we
could move to a safe and just space:

1. Population
2. Distribution
3. Aspiration
4. Technology
5. Governance
Aspiration:

We are ‘persuaded
to spend money we don’t have
on things we don’t need
to make impressions that won’t last
on people we don’t care about’.
SEEING THE BIG PICTURE
from self-contained market
to embedded economy
Circular Flow Diagram
 20th Century Neoliberal Economics

1. THE MARKET, which is efficient – so give it free rein

2. BUSINESS, which is innovative – so let it lead.
3. FINANCE, which is infallible – so trust in its ways.
4. TRADE, which is win–win – so open your borders.
5. THE STATE, which is incompetent – so don’t let it
meddle..
 20th Century Neoliberal Economics:
Other characters

1. THE HOUSEHOLD, which is domestic – so leave it to the

women.
2. THE COMMONS, which are tragic – so sell them off.
3. SOCIETY, which is non-existent – so ignore it.
4. EARTH, which is inexhaustible – so take all you want.
5. POWER, which is irrelevant – so don’t mention it.
Embedded Economy
 Embedded Economy

✓ nests the economy within society and

within the living world, while
recognising the diverse ways in which
it can meet people’s needs and wants
 Embedded Economy

1. EARTH, which is life-giving – so respect its

boundaries
2. SOCIETY, which is foundational – so nurture its
connections
3. THE ECONOMY, which is diverse – so support all of
its systems
4. THE HOUSEHOLD, which is core – so value its
contribution
 Embedded Economy

1. THE MARKET, which is powerful – so embed it wisely

2. THE COMMONS, which are creative – so unleash
their potential
3. THE STATE, which is essential – so make it
accountable
4. FINANCE, which is in service – so make it serve
society
5. BUSINESS, which is innovative – so give it purpose
6. TRADE, which is double-edged – so make it fair
7. POWER, which is pervasive – so check its abuse
 “Rethinking economics is not about
finding the correct one (because it
doesn’t exist), it’s about choosing or
creating one that best serves our
purpose – reflecting the context we
face, the values we hold, and the aims
we have.”