Book Review:- Doughnut Economics: Seven ways to think like a 21st century economist by Kate Raworth

 


In this blog I note down the major takeaways from the book:

  • The word economics coined by Greek philosopher Xenophon. Oikos = household, nomos = rules or norms
  •  Narrow and mostly quantitative/ theoretical scope of economics education curriculum led to student protests in 2008
  • There is a lot of authority if economics because it is the language of public policy and has separate noble prize for economic sciences 
  • Rethinking economics by starting economics not with the long-established theories but with humanity's long-term goals. 
  • The doughnut which is a safe and just space for well-being of all while avoiding ecological destruction and human deprivation poverty. The doughnut which is a pictorial representation of the concept to guide humanity in 21st century in line with the SDGs.   
  • The author calls for unlearning and relearning the fundamentals of economics and the power of pictures in explaining economics.
  • Raworth finds it ironic that 20th century economists decide to define economics as a science of human behavior but based in the assumption of a rational economic man. 
  • Seven ways to think like twenty-first century economists: 1. Change the goal from GDP to doughnut, 2. See the big picture: self contained market to embedded economy, 3. Nurture human nature: rational economic man to socially adaptable humans, 4. Get savvy with systems: mechanical equilibrium to dynamic complexity, 5. Design to distribute 6. Create to regenerate 7. Be agnostic about growth 
  • Human welfare centric growth called humanistic economics. 
  • Five factors to consider which will significantly shape humanity: population, distribution, aspiration, technology and governance 
  • Areas neglected by the 20th century neoliberalism: market, commons, society, earth, economy, household, finance, trade and power.
  • Majority of researches on human societies done in WEIRD societies: W = Western, E = Educated, I = Industrialized, R = Rich and D = Democratic. 
  • "Today's economy is divisive and degenerative by default. Tomorrow's economy must be distributive and regenerative by design".  
  • Redistributing wealth: Land ownership, money creation, enterprise, technology and knowledge. 
  •  GDP growth is not infinite so we need an economy that makes us thrive whether or not it grows. 

Comments

Post a Comment

Popular posts from this blog

Unethical Decision Making in Organizations

Image
Introduction Ethics are the guiding principles of any individual or organization. They are usually showed in response to a specific situation. Some examples of ethics include integrity, transparency, honesty, fairness,trustworthiness, law abiding,etc. Business ethics is the application of ethics in all aspects of business conduct. It includes the actions and behaviors of both individuals and organization as a whole. Managing and maintaining corporate ethics is one of the most pervasive and  complex issues faced by businesses today. Decision making in particular is a process in which managers and leaders must be very cautious so to avoid making an unethical decision. Types  1. Intentional Decision: There are some bad people in an organization who  deliberately make decisions in order to harm somebody or take revenge. 2. Unintentional Decision:Sometimes we fall in a context in which we end up making an unethical decision even though we have good intentions. 3. By Product
Read more

Ethical Aspects of HRM

1.Whistle blowing: It is the act of revealing any unethical activity by an individual associated to the organization. Whistle blowing is appropriate when the firm through its product or policy is likely going to do serious and considerable harm to employees or public. If the problem is not addressed by the means of internal sources then the person can resort to whistle blowing. But the employee should have documented evidence of the unethical practice. 2.Employee Reward: There should be transparency in payment, promotion, benefits and equal opportunities to all. 3. Discrimination and Nepotism: Any kind of discrimination based on age, sex, culture, religion, race, disability, nationality,etc. are to be avoided in each and every HR practices of the organization. Nepotism is the unfair practice by which a powerful person gives job, privileges and other favors to his or her relatives. It can bring the company down therefore, a system of meritocracy and fairness should be practiced in
Read more

Globalization and Business Ethics

Image
                                                                                                                                                                  Introduction In the 21st century the power and influence of business in society is greater than ever before. Nowadays the business leaders are the ones who are well known and followed by the people. Business has the potential to provide a major contribution to our societies in terms of serving the general mass through their products and services, providing employment, paying taxes, and acting as a critical contributor to economic progress. But business malpractices have the potential to inflict serious damage on individuals, communities and the nation as a whole. Due to lack of awareness and education among businessmen and  the multiplex nature of business ethics, ethical violations continue to occur across countries and sectors. Issues Different organizations have different approaches in addressing and managing eth
Read more