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Transformative Principles Driving Circular Economy in Global South

June 3, 2025
in Technology and Engineering
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In recent years, the imperative for sustainable urban development has become increasingly urgent, especially in the context of the Global South, where rapid urbanization intersects with complex socio-economic challenges. A pioneering study published in npj Urban Sustainability by Hadfield, Ningrum, Aditya, and colleagues offers a comprehensive framework that identifies transformative principles essential for steering circular economy transitions in these regions. This groundbreaking research not only elucidates why conventional linear economic models falter in such settings but also introduces innovative approaches tailored to the unique cultural, environmental, and infrastructural realities of the Global South.

The circular economy, fundamentally characterized by the reduction, reuse, and recycling of resources to create closed-loop systems, promises an alternative to wasteful production and consumption patterns. However, transitioning from a linear to a circular economy in developing nations involves far more than simply adopting green technologies or implementing waste management protocols. According to the study, it demands a radical rethinking of socio-economic structures and governance mechanisms, combined with a deep integration of local knowledge systems and participatory frameworks. These transformative principles are instrumental in bridging the gap between theory and practice, ensuring that circularity can be both equitable and viable.

One of the core challenges highlighted in the research is the pervasive informal economy that dominates many urban landscapes across the Global South. The informal sector, comprising small-scale recyclers, repairers, and waste pickers, plays a critical yet often unrecognized role in material recovery and resource efficiency. The authors emphasize that any circular economy initiative must incorporate, support, and formalize these actors, rather than marginalize them. Doing so not only enhances resource flows but also nurtures social inclusion and economic resilience, fostering systemic change from the ground up.

Another pillar of the research focuses on governance innovations necessary for effective circular transitions. The study illustrates how centralized, top-down policymaking typically fails to accommodate the heterogeneous needs and potentials of diverse urban communities. Instead, adaptive governance models that promote multi-level collaboration—engaging local municipalities, private enterprises, community-based organizations, and citizens—are more successful in mobilizing resources and knowledge. The authors argue that such collaborative governance frameworks can create enabling environments for scaling circular practices while ensuring accountability and transparency.

The research further dissects technological interventions, urging a critical evaluation of technology transfer paradigms. While advanced recycling technologies and smart urban infrastructure have undeniable potential, the paper warns against uncritical adoption of solutions developed in the Global North. Instead, co-creation and contextual innovation processes are advocated, wherein technology is adapted or developed locally to meet specific challenges such as limited energy access, infrastructure gaps, and climatic vulnerabilities. This approach minimizes dependencies and nurtures capacities within local innovation ecosystems.

Economic instruments and financial models are also scrutinized in the study as vital levers for catalyzing circular transitions. The authors discuss innovative financing mechanisms, including blended finance, public-private partnerships, and impact investing, which align economic incentives with sustainability goals. Moreover, they highlight the role of microfinance and community savings groups in empowering grassroots entrepreneurs to participate actively in circular value chains, thus reinforcing economic empowerment and fostering inclusive growth.

Crucially, the research underscores cultural narratives and education as transformative tools in fostering circular mindsets. It suggests that deep-seated consumption habits and societal values often tied to status and progress require re-orientation through education campaigns, community engagement, and storytelling that resonate with local identities. These cultural interventions are framed not as peripheral measures but as central to embedding circular principles into everyday practices and social norms.

The paper also addresses urban design and spatial planning as critical domains for embedding circularity. By realigning urban form to support decentralized resource flows—for example, through localized bio-waste processing, water recycling systems, and circular construction methods—cities can reduce their ecological footprint substantially. The authors present examples of urban regeneration projects that integrate circular infrastructure, demonstrating how design can be leveraged to close loops at neighborhood scales, thereby enhancing resilience and livability.

Environmental justice emerges as a recurring theme throughout the study, highlighting the disproportionate impacts of pollution and resource depletion on marginalized communities in the Global South. The authors advocate for equitable access to resources and decision-making power, emphasizing that circular economy initiatives must explicitly address these disparities to avoid reproducing existing inequalities under the guise of sustainability. This commitment to justice strengthens the legitimacy and durability of circular transitions.

The research also evaluates data and metrics for monitoring circularity progress, recommending the development of context-sensitive indicators that capture social, economic, and environmental dimensions. In settings where formal data collection infrastructures may be weak, community-generated data and participatory monitoring are proposed as viable alternatives. Such inclusive measurement approaches not only improve data quality but also increase stakeholder buy-in and empowerment.

The study’s integrative framework reflects a systems-thinking perspective, where urban metabolism, socio-political dynamics, and cultural contexts are interwoven. By moving beyond siloed interventions, the authors demonstrate how synergistic strategies can unlock feedback loops that accelerate transformative change. This holistic lens is critical to overcoming the piecemeal implementation failures that have plagued circular economy projects in many emerging cities.

Importantly, the paper highlights successful case studies where these principles have already been applied, providing empirical grounding to the theoretical propositions. Initiatives in cities across Southeast Asia, Africa, and Latin America exemplify how locally-adapted circular systems can generate environmental benefits, economic opportunities, and social inclusion simultaneously. These cases inspire replication and adaptation, showcasing the scalability potential of circular transitions when underpinned by the suggested transformative principles.

Looking forward, the authors call for intensified interdisciplinary research and experimentation to refine tools and approaches that accommodate the complex realities of the Global South. They emphasize that while the pathway to circularity is fraught with challenges, it also presents unprecedented opportunities for addressing pressing urban sustainability crises such as waste pollution, resource scarcity, and climate change adaptation. Aligning scientific inquiry with on-the-ground practices and policy innovation is deemed crucial.

Ultimately, the study by Hadfield and colleagues offers a roadmap indispensable for policymakers, urban planners, social entrepreneurs, and researchers committed to forging resilient and just urban futures in the Global South. By centering locality, equity, inclusivity, and systemic integration, the transformative principles identified constitute a paradigm shift—a move from incremental sustainability tweaks toward profound economic and societal transformation. As cities continue to swell, embracing these principles will be fundamental to achieving urban prosperity that does not come at the expense of planetary boundaries.

This research not only expands the scientific understanding of circular economy dynamics in low- and middle-income countries but also galvanizes global discourse for equitable sustainable development. Its call to action resonates beyond academic circles, urging all urban stakeholders to collaboratively innovate solutions that harmonize human well-being with ecological stewardship. In an era where climate urgency and resource constraints collide, such transformative principles chart a vital course toward the flourishing of cities and communities worldwide.


Subject of Research: Circular economy transitions and transformative principles in urban contexts of the Global South.

Article Title: Transformative principles for circular economy transitions in the Global South.

Article References: Hadfield, P., Ningrum, D., Aditya, B. et al. Transformative principles for circular economy transitions in the Global South. npj Urban Sustain 5, 34 (2025). https://doi.org/10.1038/s42949-025-00225-9

Image Credits: AI Generated

Tags: circular economy principles in Global Southcultural considerations in circular economyequitable resource managementgovernance mechanisms for sustainabilityinnovative solutions for developing nationsintegrating local knowledge systemsparticipatory approaches in developmentsocio-economic impacts of urbanizationsustainable urban development challengestransformative frameworks for circular economytransitioning from linear to circular economywaste reduction and recycling strategies
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