© O. Osaulenko, A. Shlapak, I. Zvarych, O. Brodovska, K. Krysovata. Article available under the CC BY-SA 4.0 licence

ARTICLE

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ABSTRACT

Modern statistics and scientific research consider the circular economy rather one-sidedly, essentially as recycling and reuse of resources. The article proposes methodology (concept) of the global inclusive circular economy, which can be considered as a complex multidimensional system, the main components of which are the economic, sociological, ecological and circular aspects of the country's life. To achieve this goal, the GNU regression, econometrics and time-series library was used – an applied software package for econometric modeling, a part of the GNU project. Accordingly, we will define the global inclusive circular economy as the SGICE (Global Inclusive Circular Economy) system, characterized by the vector of functions. For the most exhaustive consideration of the entire range of opportunities of the global inclusive circular economy, the study developed and accordingly analyzed the integrated index of the development of the global inclusive circular economy (IGICE) by ecological, economic, social and circular components with isolated weakly correlated indicators. The ranking of countries was carried out separately by the components of the index, on the basis of which circular cores were distinguished: the social component (Belgium, the Czech Republic, USA, China, France, Greece, Austria, Australia), the ecological component (Japan, Denmark), the economic component (Germany, China), which became the basis for the model of formation of global inclusive circular chains. The conducted cluster analysis based on the component indicators of the index of the global inclusive circular economy confirmed the formation of a large circular gap (gap) in the ecological and circular components. This indicator is introduced for the first time and makes it possible to comprehensively analyze the country and highlight additional effects that arise from the moment of implementation of circular business projects and the inclusion of the country (on the basis of firms, corporations) in global circular chains of added value. After all, the main problematic aspects are the illegal trade in waste and growing smuggling, which cause serious negative social consequences and actualize the inclusive component in the justification of the global inclusive circular economy paradigm. Waste reduction combined with wise use of resources has the potential to address the gap resulting from the scarcity of natural resources and a growing global population or consumption. The formation of circular trade will contribute to: the determination of priority materials for trade and the required level of processing capacity, coordination of material quality standards, promoting demand for used goods and secondary raw materials, removing unnecessary regulatory barriers and avoiding environmentally harmful activities such as non-compliance, poor regulation and informal recovery.

KEYWORDS

Global Inclusive Circular Economy, circular gap, structural components

JEL

A20, F02, F23