Abstract

The aim of the article. The article examines the conceptual, essential and organizational basis of “circular” economy as a tool of “greening” the economy and achieving the sustainable development. Results. “Circular” economy is seen as a sphere and a form of nature-social development, in which the reproduction of resources, information and energy, forming and developing of mechanisms and tools of their repeated (cyclic) involvement in the system of economic relations are provided on the innovative basis. A distinctive feature of the proposed approach is a flow-process understanding of the nature of reproduction processes in the socio-economic system, and consequently, of the turnover of resources and energy within this system. It is emphasized that the concept of “circular” economy is focused not only on resource use, and to a greater extent on resources forming, resources creation, thus laying the methodological basis for resources management, consistent with the objectives and tasks of the “green” economy and sustainable development. The authors examine the implementation of the “circular economy” not only as a set of organizational and economic measures within the existing structure of the region and the country’s economy, but rather as an orientation to the restructuring of industrial relations (economic, organizational, socio-economic, ecological-economic) and productive forces. In the context of the political determination of the need to build economic relations on the basis of “circularity” of resources in Europe and Asia, there are explored the mechanisms of the “closing” of material resource cycles at different levels of economic systems: economic units; municipalities and regions; national and global. It is concluded that the implementation of “circular” economy at the national level will result in the transformation of modern constitution, the structure and nature of the global material chains: the suspension of their expansion as a result of forming the “closed” national economies (self-sufficient in the resource provision) or forming the global recycling chains. The analysis of China’s foreign economic activity shows that the republic, which  is focusing on the implementation of the “circular” economy from 2002,  shows the certain self-sufficiency in the resources provision to support own domestic consumption as well as to produce export flows currently. It is emphasized that, against the background of the implementation of the “circular” economy, the tendency to halt global production processes of fragmentation on a geographical basis is more and more clear, reflecting the formation of closed national economies. Conclusions and further research. On this background there were formulated the problematic strategic issues of further development of Ukraine’s economy in terms of the global development of “circular economy”: the high risk of further price fluctuations in key domestic export-oriented sectors, i.e. agriculture and metallurgy, requires the revision of the export policy, as well as reformation of industries  with the focus on import substitution and on formation of domestic “full” production cycle; the high risk of further development of the market of imported re-use goods in Ukraine against the background of the failure to form a proper waste treatment infrastructure threatens significant worsening of socio-ecological-economic situation in Ukraine in the short term.

Keywords: “circular” economy, industrial ecology, flow-process approach to resource management, sustainable development, resource cycles, global material supply chains, recycling, resources recovery, resources forming

JEL Classification: F01, F63, Q57.

Cite as: Mishenin Ye. & Koblianska, I. (2017). Perspectives and mechanisms of “circular” economy global development. Marketing and Management of Innovations, 2, 329-343. https://doi.org/10.21272/mmi.2017.2-31

This work is licensed under a Creative Commons Attribution 4.0 International License

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