Doughnut Economics

Doughnut Economics

SGUK Ep 143

 

Introduction

Our world is broken in places and in a growing number of regions, the cracks are beginning to show.  Generally these places have leaders which have a growing disconnect with its people. History has shown that nations can come back from such a huge chasm in its economy and its people.  How, I wonder, did those nations move on from their respective difficult and often perilous environments?  How did they move on from broken societies with no connection between each faction, and the leaders of the day continuing on their path with impunity? Can history over centuries tell us anything and can they help with current broken societies?

I thought it would be interesting to use a few examples to bring these scenarios to a place of understanding of what was going on in those various broken societies, and to explore what each of them did to move out of that difficult space, for each country to rebuild and feel that their voices were heard for the first time in a long time, and in some cases, it was many years of waiting to enter spaces with hope.

Based on some of the discussions we have had on this podcast, I have included two countries that we have discussed, pointing out the disconnect between those from Societal Tier One and the rest of the population, two that have documented well in History, and others which are on the brink of imposing leadership on its population.

You will not be surprised to hear that the UK and its Monarchy and friends and associates in Society Tier One are in the group to be discussed, but there are others that you may not have considered.  The USA and the impact of the Election process and what awaits the USA and the ripple impact on the rest of the world towards the end of January 2025.  Germany and its experience of Hitler and the regime that was in place and how it moved on from that environment.  France and the last Monarchy to exist in that country and how they as a nation moved on from that leadership model.  The most recent one, which is teetering on its last legs whilst trying to impose something on its people.  One attempt was to introduce Martial Law, but within a few hours that instruction was withdrawn.  South Korea is in a precarious position, as are the people of that country.

We will look at the approach used when analysing information about the sample countries, briefly give my thoughts that I have held for some time, as I stand back and look at the world around me, and try to do my usual and extract patterns and themes, and learning points wherever possible.

1. In terms of France, I will outline a brief summary of the conduct and impact of the King and Queen of France (Louis XVI and Marie Antoinette) and the main events which caused the changes and moving forward without a Monarchy. Ie Post Revolution.
2. In Germany’s example we will look at post WW2 and how the country developed a Post Hitler nation, with its divide of East and West, and the rebuilding of Germany.
3. We will explore what if any lessons there are for the USA – thinking here about inclusion and participation and adapting any successful strategies.
4. My thoughts on how the UK can and also should move on from its current state.
5. My conclusions
6. Useful Books on this topic of ‘collective participation from all societal levels. 3 books, 2 research papers, 2 Economic Publications on this topic, one of which led to the title of this podcast. I was spoilt for choice, but in the end I opted for Doughnut Economics.

“Doughnut Economics: Seven Ways to Think Like a 21^st Century Economist” by Kate Raworth.  This book challenges traditional economic thinking and proposes a framework for sustainable development that involves collective participation from all societal levels.

Approach

My approach to trying to make sense of all this was to look for the main events and strategies that took place following some kind of movement in emotions of what was happening at the top tier, and how the remaining groups of inhabitants of each country survived and whether or not they voiced their concerns about the path their respective countries were embarking on.

My background in my professional life centred on Policy and Strategy.  In those roles I always stood back from the day to day drama and looked for themes and patterns of behaviour and then broken them down into finer details of commonality – even when the ties were loose, but the general pattern existed.

I used that approach to analyse the situation now, with the countries I mentioned earlier, and in particular to give some thought to the UK and USA and their current direction of travel.  Neither one is an advert of good practice, and added to that, both the UK and the USA have some dangerous groups who are active and their numbers are growing.  Many others are following those groups and individuals without question, and on the face of it, all may look very bleak indeed.  However, remember two other examples of countries where control was centred on a group of people who did not care about the opinions of the wider population, and had an inability to read a room.  The UK is definitely one of those in that scenario right now, however, the two countries I am referring to are from historical events, and they are France and Germany. How did they overcome such turmoil, and turn thing around, where economically both are thriving centuries later (though France right now is in a perilous position where the Prime Minister has lost a confidence vote and the President is hanging on by a thread)  Maybe the pattern and the trends I mentioned earlier are about to start again for France.  Does that indicate that patterns and trends emerge in every situation like this, and at some point, is there something that occurs, that ultimately leads to a new start of some kind?

After reading a few articles and searching for books and articles on this subject, the books and articles themselves produced patterns and themes.  It all became very interesting.

France

• France Post-Revolution: Main Events and Strategies:
  • Following the executions of Louis XVI and Marie Antoinette in 1793, France abolished the monarchy and established a republic.
  • The Reign of Terror was a radical phase where revolutionary leaders like Robespierre enforced political conformity, often through violence.
  • The establishment of the Directory in 1795 attempted to stabilize France by moderating the revolutionary government.
  • Finally, Napoleon Bonaparte’s coup in 1799 marked the transition from revolutionary chaos to the establishment of the Consulate, and eventually, the Napoleonic Empire in 1804.
• Moving Forward Without a Monarchy:
  • The French civil code, known as the Napoleonic Code, established legal equality and laid the foundations for modern civil law.
  • The focus on secularism and removal of feudal privileges helped to unify different social tiers around common republican ideals.
  • France fostered nationalism, and the reforms in education, infrastructure, and the military became key pillars of strength.

Germany

• Germany Post-World War II: Main Events and Strategies:
  • Post-Hitler Germany was divided into East and West, each influenced by Soviet and Allied powers respectively.
  • The Marshall Plan, funded by the United States, was instrumental in rebuilding the West German economy with strong industrial and economic policy support.
  • The creation of a democratic government and alignment with Western Europe were critical in West Germany’s integration into the global community.
  • East Germany, under Soviet influence, experienced a more isolated and state-controlled economy.
• Rebuilding Germany:
  • The economic miracle transformed West Germany into a leading economic power.
  • Commitment to democracy, social market economy, and reconciliation with neighbouring countries facilitated sustained growth.
  • Education and innovation became cornerstones of German advancement.

 

Lessons for the USA & The UK

• Inclusion and Participation:
  • Like in historical France and Germany, social change requires broad participation across societal sectors. Disengagement can lead to polarization and stagnation.
  • Encouraging active political participation and civic engagement can strengthen democracy and promote collective problem-solving.
• Adapting Successful Strategies:
  • Reforming economic structures, investing in education, and embracing diversity could bolster national strength.
  • Political and economic reforms should aim for inclusivity to harness the talents and perspectives of all citizens.

Approach

In the annals of history, various nations have overcome the shackles of authoritarian rule through the unity and collective effort of their diverse citizenry. Like the metaphorical doughnut, individuals from all walks of life have gathered in a circle of shared understanding and mutual goals, casting aside their differences to forge a path toward democracy and prosperity. This unity serves as a template, demonstrating the power of collective participation in rebuilding a nation stronger than before.

No nation requires its citizens to agree on every detail. Instead, the focus must be on working together to identify the central themes and shared objectives that can guide strategic planning. When people collaborate across societal tiers, the nation rises as one, fostering resilience and strength.

Reflecting on the recent USA election, people of color (POC), long regarded as the nation’s frontline defenders of progress, are re-evaluating their roles. They are prioritizing mental health and uplifting each other, acknowledging that while voices were raised for change, the nation was not prepared for a female president—let alone a black female president. The message is clear: POC are not opting out; they are recalibrating their involvement to ensure their participation is part of a broader collective from all societal tiers. New strategies will emerge, rooted in identified common themes.

The era of bearing disproportionate burdens for change has ended. A model of unity must prevail, where diverse factions demonstrate genuine intent and unity of purpose. Only then will POC fully engage, contributing to a powerful and unified force for change—one that, when realized, will stand as one of the most formidable collectives in American history.

This paradigm reflects the principles of Doughnut Economics, where collective participation drives recognizing patterns, setting goals, and building consensus on forward-moving strategies. It is a beacon of hope, illustrating how nations can thrive through shared endeavour, creating societies that are fairer, more equitable, and ultimately, stronger together.

 

Conclusion

In conclusion, transformation after regime changes in both France and Germany required a blend of strategic governance, social reforms, and active public participation. These lessons emphasize the importance of unity, inclusivity, and strategic reforms to navigate complex societal transitions. Any nation, can benefit from these historical precedents by fostering broad civic engagement and embracing inclusive policies to address current challenge

Unless different groups/tiers come together things won’t change. everyone in those groups need to understand and have similar goals for success. Without it – no one faction is strong and this leads to increasing nations bordering on dangerous times ahead for its people.

Successful and sustainable change often requires the collective effort of diverse groups and social tiers working towards common goals. When societies embrace inclusivity and cooperation, they can navigate challenges more effectively and create a more stable and prosperous future for all citizens.

 

Here’s a brief overview of how these systems are generally structured in each country:

United Kingdom:

1. Upper Class: This traditionally includes the aristocracy and peerage, with titles such as dukes and earls, as well as those with significant inherited wealth. It also encompasses high-ranking professionals and business owners, as well as members of the royal family.

2. Middle Class: Often split into upper and lower middle classes. The upper middle class might include professionals such as doctors, lawyers, and managers, whereas the lower middle class might include teachers and lower-level government employees.

3. Working Class: Typically includes skilled and unskilled manual labourers. There has historically been a distinction between skilled workers (sometimes referred to as the “working middle class”) and unskilled workers.

4. Lower Class: This can include the unemployed and those in poverty. Individuals in this class often face the greatest barriers to upward mobility.

United States:

1. Upper Class: Includes extremely wealthy individuals and influential figures, often with considerable assets in business and real estate. The upper class can include old money (wealth passed down through generations) as well as new money (recent self-made wealth).

2. Upper Middle Class: Comprising professionals with advanced degrees and significant incomes, such as doctors, lawyers, and executives. Education is a key factor in belonging to this group.

3. Middle Class: Often characterized by a comfortable standard of living, job stability, and home ownership. This class is noted for its diversity in occupation, including both white-collar and skilled blue-collar jobs.

4. Working Class: Consists mainly of labourers and service industry workers. This class often faces economic instability and lower educational attainment.

5. 5. Lower Class: Includes those with lower incomes and individuals depending on government assistance. This group often faces significant economic hardships and may include the unemployed and underemployed.

In both countries, there is ongoing debate about social mobility and the extent to which individuals can realistically move between these classes. Factors such as education, economic opportunity, and cultural capital play significant roles in determining one’s class status, and systemic barriers can make upward mobility challenging. Social class impacts many aspects of life, including political influence, social networks, and access to resources.

Ivy Barrow

08/10/24

 

REFERENCE MATERIAL THAT COULD BE USEFUL

Here are some books, research papers, and economic publications that explore themes of sustainable change, collective efforts, and inclusivity across different social tiers:

Books:

– “The Third Pillar: How Markets and the State Leave the Community Behind” by Raghuram Rajan. This book discusses the importance of communities and the need for collective effort to balance markets and state power.

– “The Spirit Level: Why Greater Equality Makes Societies Stronger” by Richard Wilkinson and Kate Pickett. The authors argue that more equal societies have better social outcomes, emphasizing the need for inclusivity and shared goals.

– “Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist” by Kate Raworth. This book challenges traditional economic thinking and proposes a framework for sustainable development that involves collective participation from all societal levels.

Research Papers:

– “Collective Action and the Capacity of Communities to Cope with Climate Change” by Adger et al. This paper examines how diverse groups can come together to address environmental challenges through collective action.

– “Social Capital and Collective Action: A Theoretical Overview” by Collier et al. The paper discusses the role of social capital in facilitating collaboration among different groups for common goals.

Economic Publications:

– Reports from the World Economic Forum (www.weforum.org) often address global challenges and the necessity of collaboration across nations and sectors.

– The United Nations Sustainable Development Goals (SDG) Reports (www.un.org/sustainabledevelopment) highlight objectives for inclusive and sustainable development that require collective international and local efforts.

These resources offer insights into how collective and coordinated efforts across diverse groups can contribute to sustainable change. They also address the challenges posed by unequal power dynamics and the importance of inclusivity in modern governance and economics.