We believe that it is possible to build an economy that moves within our planetary and social boundaries by making it more distributive and regenerative and through changing the way we consume.
A distributive economy
So what does it mean for an economy to become more distributive? According to Kate Raworth* it is about distributing wealth, which means not only re-distributing income from the richer to the poorer (citizens as well as nations), but to close the gap of income or wealth inequalities and generate equal living conditions for all. This again helps to assure the social foundation for all and stay above the lower circle of the doughnut.
There are a variety of measure that can be taken in order for an economy to become for distributive and we believe that one of them is by growing the market share of local and or small and medium business.
We currently live in a market that is mainly oligopolistic, meaning that the largest part of demand and supply in any industry is covered by a few number of large corporations and therefore power over markets is very much concentrated in their hands.
By empowering smaller and medium business, shifting demand towards those and therefore growing their market share we can make a step towards distributing wealth in a more equal way, and shifting away from income and knowledge concentration within the few most powerful.
A regenerative economy
The second goal is for our economy to become regenerative by design* in order to stay within the upper boundaries of the doughnut, our ecological ceiling. This, can be achieved by designing an economy that goes away from a linear “take-make-waste” economic model, towards a circular economy. A circular economy is one that uses only renewable resources, and makes sure those resource are regenerated faster then they are used and that eliminates waste by reusing resources from one process or from used goods to make them into new ones.
Therefore we believe that we need to develop and empower more business model based that promote such a mindset and offer sustainable alternatives, help them generate more demand and growing their share. Business models based on reducing or even eliminating waste, based on sharing or re-using goods and business based on using renewable resources.
Increasing the market share of both SMBs and sustainable businesses will finally help to change the way we consume and help us to move into the doughnut.
*Source: Doughnut Economics – Seven Ways to Think Like a 21st Century Economist, 2017, by Kate Raworth