Transitioning to the CE is not only an economic necessity but also an environmental one. The resource scarcity incidents, from water to rare earth metals and fossil fuels, are driving up their costs, posing serious questions regarding the sustaining of the global economy. Economies still persisting with the linear model continue to suffer from rising material costs and increased waste management and ecosystem restoration costs. In this context, CE solutions allow for more rational use of resources, reduction in emissions, and minimized environmental harm. Ken Webster’s work [9—11] points out that CE is a tool that would definitely help achieve sustainable economic growth because it reduces dependence on imported resources, minimizes environmental impact, and stimulates innovation. On a macro level, CE enhances economic stability by reusing resources and reducing disposal costs. On a micro level, companies can establish an optimal production process, reduce expenses, and ensure a more sustainable business model with a focus on long-term profitability.
The transition prospects of countries towards a CE can be highly different in countries at different levels of economic development. The classification of countries according to their development level was proposed and formalized in 1989 by international organizations like the World Bank, the International Monetary Fund, and the Organization for Economic Co-operation and Development. This classification is performed according to Gross National Income per capita.
Originally, the classification was established in the mid-20th century when, after World War II, there arose a need to systematize the economic differences between countries to organize international aid and foster economic cooperation (fig. 4).
Figure 4. World by development status [12]
Developed countries, also known as high-income countries, include those that have the highest GDP per capita with a stable economic growth and advanced industrial and social infrastructure. They also enjoy a very high quality of life. The financial and institutional systems are highly developed, innovation and investment in new technologies is very active, and poverty and unemployment are relatively low. Besides, they have high standards of education, healthcare, and social services, which contribute to overall stability and resilience. Examples of developed countries include the USA, Germany, Japan, Canada, and Australia. Many developed countries are members of the Organization for Economic Co-operation and Development, founded in 1961 for the purpose of fostering economic development and the exchange of experiences among high-income nations.
The second group consists of developing countries, or countries with middle-income economies. These countries exhibit lower economic indicators compared to developed countries but show consistent economic growth. They face challenges such as poverty, income inequality, limited access to education and healthcare, as well as infrastructure deficits, which hinder further development. However, countries like Russia, Georgia, China, and Brazil, through industrialization and export activities, demonstrate improved economic indicators and are gradually transitioning towards higher-income levels.
The third group is the least developed countries, which are also known as low-income or underdeveloped countries. In these countries, there are severe social and economic problems, including low per capita GDP, underdeveloped infrastructure, high poverty, and limited availability of basic social services. Quite often, unemployment is high and educational and health facilities scarce, thus inhibiting the growth of human capital, which in turn tampers with economic stability. Examples include most sub-Saharan African countries, including Haiti and Rwanda.
In a developed country, the state level supports transitioning to circular models, actively encouraging this transition by legislative initiatives and investments in sustainable technologies. For example, in the Netherlands, CE has been recognized as a national strategy; the government has announced plans for complete implementation of CE principles by 2050. Japan also has advanced recycling and reuse technologies that help reduce waste flow and minimize environmental impact. These countries are the ones with substantial development of infrastructure, financial, and technological resources to realize circular projects at all levels of the economy.
At the same time, developing countries are also trying to include elements of the CE in their economies, although this is more difficult to do because of a number of obstacles. For instance, in Russia, the government actively supports waste disposal and recycling programs, which help reduce environmental impact and create new jobs. In Georgia, the transition to CE is supported by international funds and organizations, which undertake different measures of decreasing pollution and waste recycling. In this respect, international cooperation and access to financial resources through the World Bank and the United Nations (UN) are important for such countries to facilitate a shift toward circular models. Brazil also pays considerable attention to the integration of circular approaches into agriculture and to the recycling of plastic waste. However, complete transitioning to circular principles needs more general dissemination of knowledge and technologies, government support, and changes in legislation.
The least developed countries, especially in most regions of Africa, provide the most challenges when implementing the principles of the CE. Minimal financial resources, poor infrastructure, and heavy dependency on natural resource exports are obstacles to their transition toward closed-loop material cycles. On top of it all, these countries face other global concerns: poverty, food shortage, and limited access to basic services make the adjustment of circular practices even more difficult. The attempts at integrating the CE are further contested by resource competition and the attention that needs to be given to urgent humanitarian issues. However, the CE could still be of benefit for such countries in the form of more efficient use of local resources, a reduction in dependence on imports, and easing the environmental burden. Yet, it needs immense support from the international community through finance, expertise, and education programs to train local specialists and create the necessary recycling infrastructure. The involvement in the global CE may unlock opportunities for low-income countries in exporting recycled materials and improving economic conditions. However, this requires long-term, comprehensive efforts that not only aim at creating environmentally sustainable production processes but also address more fundamental social and economic problems.
Chapter 1. CE in developed countries
The concept of CE is gaining increasing significance in developed economies as they face challenges such as resource depletion, waste accumulation, and growing environmental concerns. The objective of this section is to understand CE through examples given by leading countries in this sphere, which have huge experience in the elaboration and implementation of sustainable economic models. Examples include the USA, EU member states, Australia, Canada, Andorra, South Korea, and Japan-all of which actively develop and promote circular principles through various government programs, legislative initiatives, and corporate strategies. The review of successful strategies shows how CE contributes to resilience enhancement and competitiveness at both the national and global market level.
These countries have realized that a transition to the CE can help improve resource scarcity, economic growth, reduced environmental impact, and uncover new economic avenues. For example, ambitious EU targets for recycling, waste reduction, and sustainable production are driving significant changes in EU industries from construction and manufacturing to consumer goods. The advance in the recycling system of Japan, fully encompassing all that waste management is, illustrates that a country has integrated circulatory into the national strategies toward reduction of ecological footprints, raising the bar in sustainability. Indeed, these examples prove that CE works in real life and therefore can become one of the ways of economic strengthening. It creates new jobs, develops an innovative technology and service sector, and ensures the long run of industries by making them independent from raw materials and energy.
As these countries keep emerging at the forefront in circular