Why our economic model must change – VPRO documentary

Why our economic model must change – VPRO documentary

British economist Kate Raworth
considers herself a ‘deserter’ in her field. In the field of economics… …the prevailing idea is that the economy
has to grow permanently. Raworth believes
that’s a misconception. She has developed
a new economic model: the donut. A compass for
the 21st century economy. Raworth, who some
call the new Keynes… …says striving for permanent growth
undermines our welfare. In this episode, Kate Raworth
comments on examples… …that illustrate her new economic model. This isBacklight.Welcome to the battle
against infinite growth. the donut economy Long ago, dead bodies were dissected
in De Waag in Amsterdam. This work by Rembrandt van Rijn
was painted here. It’s an important image
for Kate Raworth. This is where her story begins about
our limited outlook on the economy… …and what we can learn from
Rembrandt’s anatomy lesson. Kate Raworth
economist What can our planetary body handle? We haven’t had to think about it
for the last 11 thousand years. We burden the planet with our waste. And we have trouble understanding
that we can’t keep doing that. Since the economic growth
has picked up again… …we’re so glad to be able
to produce and consume again. But the recovery of the economy
might be the crux of the problem. As we lull ourselves to sleep
with our purchasing power… …the economic growth has reached
the planetary limits. We’re consuming more than we
and the planet can handle. We’re feeding the leading economy… …in which growth can’t stagnate
and standing still equals decline. Even when the economy has matured
we look for more growth. Even if it leads to oil disasters like the
BP oil spill in the Mexican Gulf in 2010. One of the biggest ever. But we’re a far cry from
this new way of viewing the economy. Human rights aren’t always protected
in the fashion industry. Here, people live and work
on the inside of the donut model. InChina Blue,a revealing documentary
largely filmed with a hidden camera… …about the workers’ lives in factories
where our jeans are produced… …we see what the industry
doesn’t want to show us. Like the negotiations to get the price
down as much possible. Tell him we sorted the problems.
He needn’t worry. It’s not like how it used to be. Mr Lam says that now the factory
is quite different from before. And also we expanded
our production line. We now employ 750 workers. 4.3 or 4.2.
– 4.2? That’s very cheap. We don’t just come up with these prices. 4.1 is our absolute minimum.
Okay? 4.10 dollar. Here’s to a nice cooperation. Alright. Do we have a deal?
– Thanks. They make more money than we do. They make cost price times ten. We take the biggest risk
for the least amount of money. tonight everybody is working late The workers make around ten cents per pair. Every month, we produce
around 200,000 pairs of jeans. Times 0.20 dollar profit per pair… That’s 40,000 a month.
Not bad at all. On the other side of the world… …this flexibility of the consumer is waited
upon hand and foot. Employees are subjected to long shifts
and absolute minimum wages… …and abysmal working conditions. We work twelve-hour shifts. I work from eight a.m. till eight p.m. When I come home,
I have a quick bite to eat. And after this one-hour break
I start my second shift at nine p.m. Who is able to work
36 to 48 hours on end? You work yourself into the ground
just to make a living. Throwing things away
will be a thing of the past. Our children are starting to grow up
with waste being a natural resource. Here’s a stack of mobile phones. We’re going to take these in
and recover the precious metals. Like the gold in these connectors.
We’ll extract that gold. There’s also silver there,
palladium, copper… …lead, nickel, tin, antimony.
They’re all elements we can recover. In nature, you hardly ever see gold and
palladium together in a mining product. But here you’ve got them both
in one device, so this is a rich mine. A few years ago during
the Winter Olympics in Vancouver… …we were one of the suppliers of
the gold and silver used for medals. The material was from print boards
we received from a Canadian supplier. We recycled the print boards,
removed the gold… …and sent it to the Canadian Mint… …who used the recycled gold
to make medals, among other things. So some of that recovered gold
is now in the Netherlands. The Dutch always do better in
the Winter Games than the Belgians. So your skating champions will have
brought back some gold and silver… …that was extracted here
at Umicore in Hoboken. But the reality is that it’s not that easy. In the production of the Fair Phone,
a mobile made of durable materials… …and which guarantees nobody is
exploited in the production process… …designer and CEO Bas van Abel… …experienced the ethical limits
of our current economic system. He wanted to find out what
was involved in developing a phone… …and started a company for that reason. I wanted to produce a phone
as a way to get into the systems. If you want to make a phone
in your back garden and you succeed… It might take 2 or 300 years, so if we
ever live that long that will be possible. That’s a piece of art,
you put it in a museum and say: Look at this, it’s priceless
and very symbolic. But I wanted to question
the economic system. So that meant setting up a company. It had to be commercial, because
I wanted to delve into this economy. As soon as you’ve set up the company,
everything changes. You run into all the shit
that every company runs into… …in this economic chain. Everyone thinks in the short term
and about money. The strange thing is that
when you’re so full of passion… …and working so intensely
on developing something… …you can lose yourself,
simply because you want it to work. All you can think is: It has to work. But you’re making something
you can hardly control. Before you know it, you’ve created
something you can’t endorse. You forget about your mission,
the reason why you’re doing it. You’re just busy with this business
that keeps on growing. Suddenly you’ve got 100,000 customers. You’ve got a company with
a turnover of 10, 20 million. You’re responsible for your staff,
problems with the product… …and you’re just dealing
with money and surviving. And then you ask yourself:
What have I got myself into? When did you realise: I’m not a designer
anymore, I’m an entrepreneur? When I ended up at
the psychiatric emergency service. That’s when I realised. We need more regulation. How do
we do that in a deregulated world? How should governments
increase their roles again? Should they force companies
into circular production… …the way China does from above? Denmark is an example
of such a country. The Danish Growth Fund
invests in business start-ups. The Fund is a great driver
of innovation in Denmark. One of the companies it invested in
successfully, was Universal Robots.

50 thoughts on “Why our economic model must change – VPRO documentary

  1. Only a young woman could be so naive! She has no clue what she is talking about. She only looks at the surface of the problems. We must not only change methods and expectations, we must actually change our psychology and life styles. There is absolutely no motive to do this because we still think in terms of profit and loss. These ideas MUST be thrown out the window! Who will do that? Money and success are indelibly imprinted on our minds from birth! Competition is anathema to a green planet, yet she repeats the programming without even recognizing the contradiction. What hope is there if she is the best and the brightest? None!

  2. ‘Save the planet—kill yourself!’
    That's the real ideology of the eco-communists. These self-proclaimed defenders of the Earth are agents of central bankers. Don't be fooled by the genocidal agenda they're selling as ‘social justice.’

  3. This is nonsense! Why? I’ll leave it up to you to think and come up with the answer.
    If you’re not able to come up with an answer than you’re wasting you’re time watching this.

  4. Recycling is nothing new. In my south London childhood after WW2 nothing was wasted, men with horses and carts would collect anything recyclable e.g. clothes. Paper bags, no plastic. Vinegar was sold loose, i.e. you supplied your own bottles.

  5. It seems the donut theorem is so foreign that people are only capable of analysing it through the lens of capitalism. How amusing!
    In capitalism, the cost of environmental degradation and resource depletion are externalised, or kicked down the road. In industry devoid of regulation, there is NO CHANCE that a company can revolutionise itself into a circular donut model, while its competitors are free to continue business-as-usual making cheaper, shorter-lasting shit where the environmental load of the BIRTH, LIFE AND DEATH of the product are not its problem. SHIT, it’s not even the problem of the consumer or society presently, let alone the company. We just kick the problem down the road, BURY IT. When future generations need more hydrocarbons [etc], they can dig it all back up again and it’s THEIR PROBLEM. When our groundwater has completely disappeared or is unusable, then it will be THEIR PROBLEM. When our soil is a barren, lifeless, polluted dustbowl it will be THEIR PROBLEM.
    Only government, and let's face it—to truly tackle the scale of the problem—international cooperation,
    can force and coordinate companies to be environmentally and RESOURCE responsible;
    or force and coordinate investors to think more than a strictly FINANCIAL return;
    or force or coordinate consumers to think more than just this passing MOMENT’s consumption.
    When I buy a mobile phone—even if I am the greenest citizen it the world—can I realistically research how much lithium, gold, etc is in the phone, where they were sourced from, how recyclable it is, how updatable it is, how repairable it is, whether it has obsolescence built in to it?
    Presently, even if I manage the greenest mobile company in the world, can I be expected to, and will I be recompensed to do likewise?

  6. ur demands ur oil ur greed will end civilization in 2028 if not sooner. uv killed the oceans ..fkn ignorant human race .

  7. Step 1 remove fiat money printing.
    Also this video reeks of socialism. What are the real solutions here? This stupid lady hasn't done any hard work or selling or anything in her life and she's worked in academia so she thinks her magical ideas haven't been assessed before. At 34 minutes she brings out the hoses like a condescending idiot. The robot story from Denmark made sense but honestly it goes against everything she said. More robots will produce more stuff faster and use more resources.

  8. Free trade capitalism rewards business leaders for being exploitative. With international trade, there is no political interaction for there to be any recourse between the exploiters and the exploited. These negative aspects of capitalism were much more easily managed before the barriers to international trade were demolished in the name of free trade.

  9. To continue the biological analogy, why are some people trying to stunt the child's growth? Growth should be allowed to run its natural course. It will stop on its own when the time is right. And although arguments can be made that economic theory falls short in some important respects, the specific arguments that this video makes are not among those that would rationally justify changing the economic textbooks. The role of any science, including economics, is to describe how things work, not to prescribe how you think they "should" work, or how you wish they worked. People who are under the delusion that things work the way they do because some branch of science prescribes it rather than describes it are so scientifically illiterate that they are not worth listening to.

  10. I hate factual inaccuracies. No islands are sinking under the sea. This has been disproven. Furthermore, sea level is not rising faster than its interglacial norm, and the correlation between atmospheric CO2 changes and temperature changes, at least during modern times when we have had somewhat accurate means of measuring these changes, has been zero, and even over much longer periods of time is quite weak. Correlation may not be causation, but, when causation actually exists, correlation will always exist as well. So why is the correlation missing? Because CO2 is not the driver of climate change, just a minor feedback effect which makes a contribution that is too small to measure with accuracy and confidence.

  11. Recycling will kick in when the price of resources rises high enough, that is, when the cost of extracting new resources exceeds the cost of recycling old resources. That sort of problem will resolve itself. Don't stunt the child's growth. Let him mature.

  12. If every act is an social and environmental act,then maybe human thought and the futility of thought need to be taken into account.The speaker talks about nature alot,so maybe we need to reconsider our place in the natural heirarchy,we are tertiary creatures and creatively active,and take it from there.

  13. In Australia there was a recycling push all rate payers had to pay extra for collecting the recycling rubbish. Initially it was shipped to other countries to recycle. But now China doesn't want it it goes into land fill. Yet we are all still paying. The glass is 90% cheaper to import from china than to recycle locally. So no company can afford to pay $70 a ton to recycle when they can import bottles already made in china for $10 a ton.
    All these ideas are just to create a new tax on the people. We now have a 10 cent tax on all plastic bottles which can be refunded if taken to a collection centre. The collection centre gets 30 cents a bottle to collect them. So the extra 20 cents is covered by the tax payer and where do these bottles go? If the can be smuggled into another country like Malaysia or they just go into land fill….So what happened rate payers pay to get recycling collected that isn't recycled (except paper/cardboard) then their is a 10 cent duty on bottle and the rate payers once again pay an extra 20 cent per bottle for someone to collect and then put in land fill??????????

  14. Great idea but it never happen greedy Rich won't allow it the power Brokers you're taking away from their profits

  15. I’m on board but it’s just more utopian bull shit.
    Just like The Venus Project.

    With nine billion running around the rock
    getting everyone on the same page is just about impossible.


    [] Folks want shit

    [] The shit doesn’t make itself

    [] Someone needs to get out of bed in the morning
    and help make the shit

    [] It’s called the division of labor

    [] A medium of exchange and
    distribution system makes it all work

  16. I'm confused how an Olympic medal is part of a regenerative economy. It seems to me that it is a massive amount of a useful resource going to one person and PERMANENTLY being removed from the economy. We just need to stop having the olympics and find some more cooperative sporting rituals that help regenerate the planet. Maybe once this planetary stability is achieved we can reconsider, but I think the ego drive of being the best athlete is simply a joke while climate change is kicking all our asses

  17. What started off promising to redefine the 'meaning' of economic growth, ended up being yet another 'talk' on the 'need' for a circular economy.

  18. There all sorts of downsides with this too. For ex the rent your jeans. It will cost you much more money for the same product. Also there is a danger that the product will be recycled before the end of life. When owned it still might be used for a year or two. But when leased and you're up for a new pair, you just will recycle, even when you still would use them under normal circumstances. Besides realistically over 90% of the world population is at the very center of the donut. You not only have to get them out of the center of the donut, you have to get them to a level so they can participate in the processes as well… In the end you have not addressed the fact that we are just with too many people. At the current birth rate the center of the donut will be expanding, not the sustainable outer parts. It's a nice, idealistic idea but that is currently all it is…

  19. Getting to root causes of our ecological predicament, finally. Been waiting years for this, you're on the right track, buena suerte!

  20. One of the greatest hurdles that I can see is that (at least here in the west) people are not "re-use / recycle" minded,
    They would rather toss their recyclable / compostable materials into the general trash (landfill) than to take the time to separate them out.
    Recycling post consumer waste becomes a nightmare when having to sort tons of biological waste or one recycle stream from another.
    I certainly can see the enormous benefits, and the reduced need for raw materials with a "circular economy".
    Great ideas.

  21. The solution is not ur donut economy, the only solution that exist is to get back to our creator which is God almighty, God bless you all 🌹🌷🌹

  22. 41:21
    That idea of a solar powered car is ridiculous. Near the equator, the solar irradiance is about 400 watts/square meter. A "hose power" equals 756 watts. A 100 HP car puts out 75600 watts of power. For a car (at the equator) to match this, the surface area of the roof would have to be about 190 square meters, which is about the floor area of a good sized house.

  23. The government lackeys are just middle management for the bankers. They are just there as set dressing to keep us sheople passive and distracted. IMHO.
    it must start like all successfull revolutions, at the bottem. The real problem is keeping the "new elite" from making the same decisions as the last in order to stay at the top. Potluk is a form of government that the native americans had. I could maybe get behind some kind of government like that.

  24. Wow! Bring it on!! 👍🏼😁🧡. TY for doing this video 😃💕. When do you think our Education System (all of it) will change?

  25. Dropped out of soul sucking manufacturing after 15 yrs and will never go back. Shame on me for wasting all that time enriching someone else's lives when I could have been enriching my own.

  26. Ok. All nice and dandy, but how do you regulate economy without putting in place dystopian military state? You can't have freedom in the market and nongrowth economy. And how exactly do you wan't to make corporations to let go off their power to make exponential profits? Can you make all people buy only local products? Will you be willing to spend half of your paycheck on food? Will you enforce restriction on travel, massive tax on fuel? Will you tax having more than one child? Will you sack 50% of workers doing "bulshit" jobs? You see, there is no other solution to the problem of climate change than eradication of 90% of the population. We can do it in ugly way, by introduction of active eugenics. Or in more ugly way, waiting for wars and famine to do the necessary adjustment. Which one? Which one? Which one? Hurry up, you can't have your fucking donut and eat it too.

  27. She is failing to realize that all that trash is just energy. Landfills will be a thing of the past and all of that waste will be converted into energy and other materials to help these countries become 1st world instead of 2nd and 3rd world. Remember matter is not destroyed; just changed, and the climate does change. The earth is BILLIONS of years old and the simple 100yr life span of the healthiest human is but a blink of the eye in the world's life. So silly to think the world runs a 10yr cycle, some plants don't even bloom but once every hundred or thousand years. For all we know there is a whole life form with numerous sub-species we don't know about yet because it only shows itself once every 10,000 years. The best step for her would be to learn more about biology, industry and innovation; because she is stuck in the past.

    As for the oil…..you do realize that oil is a natural occurring product right? Do you honestly believe that earthquakes have never released oil? The problem is HUMAN INTERVENTION. They found new organisms that actually EAT OIL. The fact we interfered actually made it worse and brought it to the surface where it did even more damage to wildlife. Just think for one second people, seriously, just think. AND the only thing that made them drill under the sea is HUMAN INTERVENTION in which governments said you can't drill on land or in a safer area; you MUST drill far out in the ocean so people can't see the oil rig.

  28. I love You, Miss! Thank You! All material has to be biodegradable, and the way of all products has to be short. We have to ban fossil fuels and uranium! Our lifestyle is totally wrong, but nobody wants to see it! Nature destruction will go on until to the last drop fuel. I hope I'm wrong. But I don't think so.

  29. Micro little satellites for space exploratory especially for internet purposes,mapping,surveillance,observation is cheaper and this very cheaper !

  30. Next we will send dust satellites in the future because its very light in the future,the latest micro satellites is just a size of a medium package box and many in Singapore for sale and cheaper.But my original idea is the sand satellites ! the smaller is the trending now !

  31. There is a theory that a place with many saintly people will not experience major calamities and will not be damage by climate change but the climate of the place is heavenly balance of rain and sunshine !

  32. I am 50 years old but i never experience major calamities in my hometown Don Carlos Bukidnon Philippines !

  33. The path of today's global economy is unsustainable. Democracy will fail eventually. A worldwide monarchy must happen until an equilibrium is restored between the human population and the earth's resources, at least. The original purpose of capitalism was to be a mechanism of regulating the ratio between the human population and the earth's resources. Under a monarchy, capitalism performed very well. But the introduction of Democracy gave too many freedoms, for too long. The result was a run away population boom and the current climate change problem. So trying to maintain the current political system of Democracy will doom the human species. The capitalist system works, it's Democracy that's the problem. Just like interest rates, that go up and down. The political systems worldwide should swing from a monarchy to a Democratic government, then back to a monarchy. And this shift should be based on the overall population of the earth and resources. Currently there are too many people on planet Earth. That's why governments are failing and negative interest rates are occurring around the world. It is, what it is.

  34. Time for VPRO documentary to also do a documentary of New Zealand's decision to exchange the GDP-measurement with LSF=Living Standard Framework.
    Where LSF must be more as EU-project beyondgdp want.

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