Why Growth Isn’t Always Good
Imagine a world where the economy grows endlessly, but rivers run dry, forests disappear, and inequalities widen. This is not dystopian fiction, it is the trajectory of our GDP-focused world today.
As early as 1972, the Limits to Growth report warned us that unrestrained economic expansion, driven by industrialization, would soon deplete the Earth’s natural resources. It is projected that if reaching the tipping point, there would be a sharp decline by 2030. GDP tells us how much wealth is generated, but it ignores the environmental damage and the deepening inequalities that come with it. Simply put, the economy cannot grow indefinitely on a planet with finite resources.
Relying solely on GDP growth to measure success is like driving a car with a speed-meter but no fuel-meter, you’re speeding toward an empty tank. Too often, we think that once we grow the economy, we can “fix” the environment later. By the time we need to “refuel” the Earth, it may already be too late.
It demands a resolution to the concern: Is there a way to shift to sustainable development?
Inside the Doughnut Economics: A Sweet Spot for Sustainability
Think of humanity thriving in the “sweet spot” of a doughnut—meeting essential needs without crossing ecological limits.
The realization that a GDP-focused linear economy is unsustainable has prompted economists to explore alternative development models. A prominent solution is Kate Raworth’s Doughnut Economics, outlined in her book Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist. In the book, she writes:
Last century’s adopted policy goal of never-ending Gross Domestic Product (GDP) growth has been leading us far off course, resulting in economies that are degenerative, running down the living world on which human wellbeing fundamentally depends, and that are also divisive, enriching the 1 percent at the expense of the rest.
Doughnut Economics flips the script by prioritizing people and the planet. Instead of sacrificing the environment for financial gains, it emphasizes societal boundaries, aligned with the SDGs, to meet everyone’s needs. The model integrates the environment into economics by defining planetary boundaries that must not be crossed to ensure sustainable growth.
Raworth goes further, advocating for circular design to transition from a linear economy to a regenerative one. Therefore, while sharing principles with the Circular Economy, DE adds a vital layer: the social pillar, aiming for design systems that are inherently regenerative and distributive.
This vision is not just theoretical, it is happening. Global policymakers have embraced DE, with Amsterdam leading as the first city to adopt it after COVID-19. The city prioritizes a circular economy focused on resource reuse, recycling, and reduction while aligning social well-being with environmental sustainability. This approach integrates Doughnut principles into sectors like construction and transportation.
In Southeast Asia, Thailand has applied the model by visualizing sustainable development through defined minimum and maximum thresholds for economic growth aligned with social needs and environmental limits. It offers insights into achieving sustainable growth within the “doughnut.”
Where do we go from here?
Balancing growth and sustainability isn’t an easy topic. It is complex, challenging, and forces us to rethink what progress truly means. But asking these hard questions is the first step toward meaningful change. Stay with Ecoquity as we explore how to make sustainability possible in future posts, this journey is just beginning.