Our planet cannot continue to cope with this extraction of raw materials and pollution of waste . Even in the face of the COVID-19 induced economic recession , it is estimated that we need about 1.7 planets to cover our current ecological footprint ( Global Footprint Network , 2020 ). We have to shift to an economy that works within our planetary boundaries and regenerates our natural systems . The good news is that there is great opportunity for the nations to reduce consumption of raw materials , increase the recycling of materials and reduce material waste while growing overall prosperity .
A circular economy is one where materials are kept in use for as long as possible , reducing the use of raw materials and attenuating waste ( Kirchherr et al ., 2017 ). In this regard , it contrasts with a linear economy that is traditionally a take-make-use-dispose economy . A core tenet of circular economy thinking is to continually strive to promote high value material cycles instead of resorting to low value activities such as recycling ( Ghisellini et al ., 2016 ). Therefore , while examples of circularity can include advanced recycling methods , the pursuit of strategies around reuse , repair and remanufacturing take precedent ( Kalmykova et al ., 2018 ). All these circular solutions need to work together with water and energy efficiencies to produce a change in the whole system .
The goal of a circular economy is to live more sustainably , to value all our resources , to reduce waste and to regenerate our natural capital , when possible . These goals are not just good for the environment , but also good for our economy . 2020 has highlighted global vulnerability to unanticipated change
Even in the face of the COVID-19 induced economic recession , it is estimated that we need about 1.7 planets to cover our current ecological footprint ( Global Footprint Network , 2020 ).
and exposed the lack of resilience in existing economic systems . Nations can increase economic resilience to adverse environmental and global events by increasing self-sufficiency and reducing reliance on global supply chains . A greater focus on wealth creation through local productivity enhancement , rather than GDP flows , is needed .
Setting a circular economy vision is only the start . A commitment to reducing the use of natural resources and eradicating waste requires systematic re-alignment as our current linear economy is entrenched in current consumer behaviour , economic business models and globalisation . There is a global need to decouple economies from the consumption of natural resources and re-align business growth models from quantitative increases in sales to qualitative development of services . It is critical that a circular economy strategy is developed with open collaboration across all sectors of the economy .
PLANNING FOR SYSTEMIC CHANGE The planning for a transitional change in the economy requires a considered approach to managing complexity . Simple problems , such as baking a cake , follow a set pattern of action and expected outcomes . Complicated problems , like sending someone into space , follow the same rules but have more steps . Complex problems , such as combating climate change , on the other hand , do not have predictable cause and effect relationships because numerous influential variables inhibit modelling accuracy ( Beinhocker , 2006 ). In complex systems , a perfect understanding of the individual parts does not mean a perfect understanding of
ECONOMIC DEVELOPMENT JOURNAL VOL 13 NO 2 2020 07