Circular economies should work for communities, not against them
The concept of a circular economy is frequently viewed through the lens of waste and pollution elimination; however, when thoughtfully applied, circular approaches have the potential to generate employment, bolster local economies, enhance public health, and more, as detailed in recent research conducted by Charles Darwin University (CDU).
Circular economies aim to minimize waste by extending the life of materials, products, and resources, serving as a vital strategy for societies striving for increased resource efficiency and environmental sustainability.
Despite a robust global dialogue advocating the adoption of circular economies, there remains a significant gap in understanding how these models can benefit community development.
In their study, led by CDU Senior Lecturer in Business Dr. Michael Odei Erdiaw-Kwasie and CDU’s Outstanding Future Researcher in Psychosocial Resilience Dr. Matthew Abunyewah, the researchers explored the interplay and potential trade-offs between circular economy initiatives and four essential community development goals: resilience, social inclusion, empowerment, and social equity.
The research, titled "Synergies and trade-offs in circular economy and community development nexus: Pathways to local sustainability," was published in the journal Corporate Social Responsibility and Environmental Management.
The findings uncovered three persistent challenges: first, the high costs associated with investing in circular infrastructure can pose a significant burden to cash-strapped local governments, which often find it difficult to finance such projects, despite their potential long-term benefits, including job creation, reduced waste expenses, and improved air quality.
Second, certain circular business models may result in large corporations monopolizing data, revenue, and repair services, thus marginalizing small businesses and community opportunities.
Third, the introduction of new tools or programs that do not align with existing practices of reuse, repair, or material handling can lead to failure in adoption. This misalignment can waste resources and potentially disrupt livelihoods.
"Many have expressed concerns regarding the lack of societal development goals in tandem with the need to enhance social and environmental activities as corporate circular economy initiatives gain momentum," stated Dr. Erdiaw-Kwasie.
To realize sustainable outcomes, it is imperative that circular strategies integrate social processes and structures.
One illustrative example of a circular economy supporting community development is Saitex, a fashion textiles manufacturer in Vietnam that employs circular strategies such as waste reduction, water conservation, and on-site renewable energy production, while simultaneously creating thousands of jobs for individuals with disabilities.
The study references Rekut, a program within Saitex's social inclusion initiative aimed at providing employment opportunities for people with disabilities by producing bags, cushion covers, and facemasks using approximately 600,000 pieces of surplus and leftover fabric.
"Socially inclusive workplaces stimulate innovation by uniting individuals with diverse viewpoints, experiences, and problem-solving capabilities. This diversity can cultivate the development of more innovative and effective circular economy solutions that cater to a broad spectrum of stakeholder needs," Dr. Erdiaw-Kwasie noted.
Based on the evidence presented, the researchers highlighted several actions policymakers and practitioners can undertake to ensure that the circular economy model serves to advance community development. These actions include realigning objectives to incorporate both community development goals along with material-efficiency targets and investing in local skill development and small businesses to empower communities to participate in and manage circular enterprises and infrastructures.
"Beyond the enhancement of well-being, the promotion of social inclusion, the encouragement of community empowerment, and the elevation of social equity, circular economies hold significant promise for accelerating community development," remarked Dr. Abunyewah.
The study was conducted in collaboration with academics from the University of Amsterdam, Hamburg University of Applied Sciences, and the University of Southern Queensland.
Citation: Circular economies should work for communities, not against them (2026, March 31) retrieved from https://phys.org/news/2026-03-circular-economies-communities.html
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