What is the Doughnut Economics?

The new economic model of the Doughnut Economics proposed by Kate Raworth shows the planetary boundaries as the outside of the doughnut and the social boundaries of every human being’s basic needs on the inside. This model should be seen as an open set of guidelines for everyone to find their role on our planet and to thrive together. “We need to think like 21st century economists “, says Raworth.

Doughnut Economics diagram

The City of Amsterdam announced in 2020 its intention to use the Doughnut Economics model: “The central premise is simple: the goal of economic activity should be about meeting the core needs of all but within the means of the planet.” says Marieke van Doornick deputy mayor. “It is not just a hippy way of looking at the world,” says Van Doornick, citing the housing crisis as an example.

And that is where Fairbnb.coop comes in, as a different kind of player, not one to extract economic value, but a player who returns viable economic values to the local community. Fairbnb.coop helps to meet the core needs of those communities. It keeps tourism up and running in a low impact way. Fairbnb.coop encourages the cultural exchange and interpersonal relationships. It will contribute to the social wellbeing of the community. 

The 7 steps Kate Raworth proposes, so as applied to Fairbnb.coop

  1. Change the goal: not ever lasting growth, but facilitate the means to keep travelling while supporting communities and growing a network of like minded eco conscious travelers, who search cultural exchange and are willing to contribute to the communities they visit. 
  2. See the big picture: do not only look at the economy, but actively take into account  the society and the planet. Use the present houses and buildings to facilitate affordable accommodation for all, without racial or economic discrimination and with less environmental impact. 
  3. Nurture human nature: as humans, we have been defined as homo economicus in the capitalist model, now however as Rutger Bregman shows in his latest book Humankind, we know that pursuing profit should not be our rationale. We naturally tend to help each other and we realize that we depend on each other. We envision that people will more and more prefer a personal experience with Fairbnb.coop above an unpersonal stay in a standard hotel room. 
  4. Get savy with systems: the strong base of cooperativism gives support and guidance to the local ambassadors. The local ambassadors are the strong links, the ones who make it easier to adjust to the complexity of local laws and different cultures and customs. In working with the local governments and partners, Fairbnb.coop will be able to make important contributions to empower and grow strong local communities. 
  5. Design to distribute: Fairbnb.coop’s model is built on distribution, a fair share for everyone: the guest, the host, the local community. 
  6. Create to regenerate: creating a model that gives back to communities instead of only extracting is quite novel and where we need to go for the economy, the people and the planet, as in the Doughnut Economics. 
  7. Be agnostic about growth: the aim of Fairbnb.coop is to not be huge, not be the biggest, and least of all not be profit oriented. “Fairbnb.coop is a non-extractive alternative to the current vacation rental platforms. We prioritize people over profit. We offer the potential for authentic, sustainable and intimate travel experiences while facilitating the development of socially relevant projects within worldwide’s communities.”

Dieuwke Reuvers, 2020, The Butterfly Impact

Bregman, R. (2020), Humankind: A Hopeful History

Isabel Duregger

Dieuwke Reuvers

Fairbnb.coop local activator in Amsterdam