Why doughnut economics and the wellbeing economy won’t drive transformation

The concepts of Doughnut Economics and the Wellbeing Economy have emerged as compelling frameworks that envision a world where human needs are met without exceeding planetary boundaries. They provide a vision of a "safe and just space" for humanity, charting a course that balances social foundations with ecological limits. However, while these frameworks effectively illustrate the destination, they fall short in providing a tangible roadmap to reach it. Without a structured transition strategy, these ideas risk being absorbed into the existing economic paradigm, maintaining the status quo rather than transforming it. This is where degrowth becomes essential: it is not a competing vision but a necessary process to move towards the goals outlined by Doughnut Economics and the Wellbeing Economy. Without a clear mechanism to restructure economies, these aspirational models will remain ineffective, offering inspiration but failing to drive systemic change.

The problem with target-setting alone

There is a common misconception that defining a goal is sufficient to mobilise action. However, as James Clear aptly states, "You do not rise to the level of your goals; you fall to the level of your systems." In a competitive 100-meter race, every runner shares the goal of winning, but success is determined not by the ambition itself but by the quality of the training systems, preparation, and execution supporting that goal. Similarly, in climate action, nearly every country has now set net-zero targets, yet emissions continue to rise. Why? Because setting ambitious targets does not inherently disrupt the economic structures that drive overconsumption and resource extraction.

Doughnut Economics and the Wellbeing Economy, while powerful in their conceptual frameworks, suffer from the same limitation. They provide an inspiring vision but lack a structured transition pathway. By prioritising broad acceptance and palatability, these models often dilute their transformative potential, making them susceptible to political appropriation and reinterpretation across ideological lines. Without a mechanism to challenge the growth imperative that underpins economic systems, these models risk perpetuating the very issues they seek to resolve. A Wellbeing Economy that remains tied to GDP growth, for example, is unlikely to address systemic inequality or environmental overshoot.

Why degrowth is the missing link

Degrowth is not merely an alternative economic vision; it is the essential process that enables the transition towards the sustainable and just world envisioned by Doughnut Economics and the Wellbeing Economy. It provides concrete pathways to reduce material and energy use while improving social well-being. Unlike other models that focus on goal-setting, degrowth emphasises restructuring economies by scaling down ecologically harmful industries, redistributing resources, and prioritising sufficiency over expansion.

Crucially, degrowth does not suggest a sudden, chaotic economic contraction. Instead, it advocates for a planned, equitable transition away from growth dependency. This involves policies that reduce reliance on GDP as a measure of success, shift production towards essential goods and services, and ensure fair distribution of wealth and resources. Without these structural adjustments, the social and ecological targets of Doughnut Economics and the Wellbeing Economy remain out of reach.

Degrowth is not about shrinking everything—it’s about building an economy based on sufficiency, well-being, and fairness. In the Global North, this means scaling down overproduction, reducing unnecessary consumption, and shifting from an extractive economy you one based on   care and sufficiency. It means recognizing that more growth in already wealthy nations deepens inequality and ecological collapse rather than improving lives. But sufficiency does not mean the same everywhere. In many Global South countries, sufficiency can mean more—more access to housing, healthcare, education, clean energy, and the resources needed to ensure a dignified life. Degrowth is not about denying this growth but making it possible by freeing up ecological space, ending exploitative economic systems, and ensuring global justice.

The risk of maintaining business as usual

If Doughnut Economics and the Wellbeing Economy do not explicitly endorse and base their transition pathways on degrowth, they risk being absorbed into the logic of "green growth." This is particularly dangerous because green growth, despite its branding, often fails to address the fundamental issue: the relentless pursuit of economic expansion within a finite ecological system. The strategies applied to reduce emissions and planetary pressures—such as the circular economy, energy efficiency, CCS, and bio-based solutions—are failing us. This is because, within a growth-based economy, innovation and technology are primarily seen as drivers of financial growth, which undermines their ability to effectively reduce planetary pressures.

However, in a degrowth-based economy, innovation and technology are used to enhance well-being while simultaneously reducing production and consumption, making them effective responses. Any strategy aimed at reducing pressures while continuing to drive financial growth is bound to fail.

We have already seen how aspirational frameworks can be co-opted by dominant economic narratives. The concept of sustainable development, for example, was initially envisioned as a transformative approach to balancing human and ecological needs. Yet, over time, it has been reinterpreted to align with growth-driven policies, often prioritising economic expansion over true sustainability. The same risk applies to the Wellbeing Economy and Doughnut Economics. Without an explicit commitment to degrowth, these models may be diluted into yet another iteration of "sustainable growth," rather than serving as a catalyst for genuine economic transformation. Degrowth is a clear break from growth; the Doughnut and Wellbeing economy is growth agnostic. One resists co-option, the others enables it.

The importance of distinguishing vision from process

Confusing a visionary target with a transition strategy can lead to inaction or the adoption of false solutions. If we assume that setting ambitious goals is enough, we risk maintaining business as usual while claiming progress. Doughnut Economics and the Wellbeing Economy provide crucial direction, but without degrowth, they lack the mechanisms needed to enact meaningful change.

To move beyond aspirational rhetoric, we must focus on redesigning the economic and social systems that shape our world. This means not only rethinking growth but also redistributing resources, reducing ecological pressures, and creating new institutions that prioritise well-being over profit. Such systemic changes require difficult political and economic decisions that challenge vested interests and disrupt existing power structures. Simply setting a goal does not accomplish this.

A path forward: integrating degrowth into economic transformation

For Doughnut Economics and the Wellbeing Economy to be truly effective, they must integrate degrowth principles into their transition strategies. This means explicitly acknowledging that infinite economic growth is incompatible with ecological limits and designing policies that facilitate a managed reduction in material and energy throughput.

A degrowth-aligned approach would include:

• Rethinking economic success: Moving beyond GDP as the primary measure of progress and adopting indicators that prioritise well-being, ecological health, and social equity

• Planned reductions in resource use: Implementing policies that cap material and energy consumption while ensuring fair distribution

• Redistributive policies: Strengthening social safety nets, implementing work-time reduction policies, and promoting wealth redistribution to ensure economic security without reliance on perpetual growth

• Local and resilient economies: Supporting localised production and consumption patterns that reduce environmental impact while enhancing community well-being

• Institutional and policy shifts: Enacting regulations that limit environmentally destructive industries while incentivising regenerative practices and cooperative business models

Conclusion: moving beyond rhetoric to systemic change

Doughnut Economics and the Wellbeing Economy have been successful in making alternative economic visions more accessible to the mainstream. However, this approach has come at a cost: by prioritising broad appeal, these models have diluted their transformative potential, leaving them vulnerable to co-optation by pro-growth agendas. Vision alone cannot drive change; transformation depends on the systems that facilitate the transition.

Degrowth provides the necessary framework to bridge the gap between aspiration and action. It moves beyond goal-setting to focus on the structural changes required to achieve a just and sustainable future. Without degrowth, the targets set by Doughnut Economics and the Wellbeing Economy will remain unattainable, and the promise of a truly regenerative economy will remain unfulfilled. If we are serious about living within planetary boundaries, we cannot simply define the goal—we must change the rules of the game.

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