| In recent years,the Circular Economy has become a priority for many global actors;new environmental challenges such as climate change,scarcity of resources,and the latest health emergency created by Covid-19,have raised the awareness of the necessity to rethink some economic and social mechanisms that have been part of the human history in the last two centuries.Indeed,the linear economy has trapped human beings in the consumerist paradigm;the production of temporary goods and the consequent creation of waste are becoming a big problem for the economy itself.In contrast,in the linear economy,which is based on the "take,make,and dispose" approach,resources are extracted,manufactured into products,which are used and then burned or dumped.Instead,the circular system is based on the dynamic of "production-consumptionrecycling/recovering":the output is the input for a subsequent process,which allows retaining the value of the products or their parts.In fact,by using this method,the value of the resources is limited,and the items are quickly turned into waste.The circular economy is mainly used in economic entities associated with a specific territory,and therefore with locally available resources and manufacturing skills.However,new technologies and globalisation have allowed reducing distances and widening the range of action;globalisation motivates companies to rebuild their operations internationally through the outsourcing and offshoring of their activities.One of the main expressions of this trend is the Global Value Chains(GVC)paradigm,which is based on the dislocation of the different stages of the production process across different countries.It is inconceivable to ask companies to renounce the benefits that the GVC provides them;however,it is not impossible to re-think the GVC’s paradigm and to add even more value to products,by applying the Circular Economy to all stages of GVC.Furthermore,the transition from linear economy to CE will need an institutional and social framework;indeed,in 2015,all United Nations member states adopted the 2030 Agenda for Sustainable Development,considering the 17 Sustainable Development Goals as a way to promote a global partnership on fundamental themes,such as education,sustainable economic growth,poverty reduction,health,and inequality.In the same year,the European Union adopted the new Circular Economy Action Plan ’For a cleaner and more competitive Europe’(’the Action Plan’).Nevertheless,the Asia-Pacific region is hardly involved in this kind of economic system.Several multinational companies that work through Global Value Chains start their production in Asian-pacific countries;indeed,the Recent APEC’s Report 2020 on CE is an expression of the commitment of members to shift from linear to CE.Moreover,as the last PWC Report claims,Asia Pacific must develop solutions for a circular economy to progress toward net-zero climate effect through encouraging collaborations between governments,business,and society to lessen the environmental impact because the region is extremely vulnerable to climate change.The ability of the society to put measures in place to ensure respect for human rights,diversity,cultural traditions,and the rights of communities to lessen the gap between the rich and the poor,as well as the right to social justice,is another aspect of the social dimension.The regulations that separate for-profit from non-profit activities are mostly determined by institutional factors.An interesting and applicable example that resists the limitations imposed by the present institutional framework and economic efficiency is the social and solidarity economy,with its emphasis on justice in labor and governance.The adoption of CE could help achieve the goals of the Social and Solidarity Economy,which aims to promote the active participation of ordinary people in determining all aspects of human life. |
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