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DOI: 10.15862/04FAOR125 (https://doi.org/10.15862/04FAOR125)

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Gasanov I.G. Circular economy: assessment of potential and barriers to implementation in developing countries. Russian journal of resources, conservation and recycling. 2025; 12(s1). Available at: https://resources.today/PDF/04FAOR125.pdf (in Russian). DOI: 10.15862/04FAOR125

Circular economy: assessment of potential and barriers to implementation in developing countries

Gasanov Islam Guseynovich
Financial University under the Government of the Russian Federation, Moscow, Russia
E-mail: rembo7722@mail.ru

Abstract. The modern global economic system based on the linear model of production and consumption «extraction-production-utilization» has faced critical limitations in the form of depletion of natural resources, degradation of ecosystems and accumulation of waste, which necessitates a radical revision of the paradigm of economic development in favor of circular models aimed at maximizing the efficiency of resource use and minimizing the negative impact on the environment. This study is devoted to a comprehensive analysis of the potential and barriers to the implementation of a circular economy in developing countries, which are characterized by specific socio-economic conditions, limited financial resources, underdeveloped institutional infrastructure and high dependence on the export of natural resources. The study reveals that the transition to a circular economy in developing countries requires taking into account many interrelated factors, including the level of economic development, economic structure, quality of the institutional environment, availability of technology, financial resources and human capital, as well as cultural characteristics and traditions of resource use. Particular attention is paid to the analysis of successful practices in implementing circular economy principles in emerging markets, including China, India, Brazil, South Africa and Central Asian countries, which demonstrate different approaches to solving resource efficiency and waste management problems. The methodological basis is formed by the concepts of sustainable development, the theory of ecological economics, institutional analysis and a systems approach to the study of social and ecological systems, allowing us to consider the circular economy as a complex adaptive system integrating economic, environmental and social aspects of development. The empirical base of the study is data from international organizations, national statistical services, the results of pilot projects on the implementation of the circular economy in various sectors of developing countries, as well as expert assessments of specialists in the field of sustainable development and environmental management. The results of the study demonstrate significant potential of developing countries for the implementation of circular economy principles, due to the presence of traditional practices of reuse and recycling of materials, growing awareness of environmental issues, opportunities for a technological leap and support of the international community. At the same time, serious barriers were identified, including lack of financial resources, weak institutional environment, limited access to advanced technologies, insufficient qualifications of personnel and resistance to change on the part of interest groups. A typology of strategies for implementing the circular economy in developing countries was developed, taking into account differences in the level of economic development, economic structure and institutional capabilities, and recommendations were proposed for overcoming the main barriers and maximizing the positive effects of the transition to circular business models.

Keywords: closed-loop economy; circular economy; sustainable development; developing countries; resource efficiency; waste management; green technologies; environmental innovations; institutional barriers

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