CIRCULAR CYCLE ECONOMY: FOREIGN EXPERIENCE

Abstract

The article reveals the process of forming a closed cycle economy in foreign countries. The peculiarities of international experience in the sphere of the closed cycle economy are also highlighted. The ultimate goal of the closed loop economy is to get rid of the dependence of global economic development on specific resources, the volumes of which are limited. In this regard, the systemic paradigm of the new economic system is based on the coordination and combination of sustainable production and consumption. State policy should provide for stimulating the practical implementation of the principles and approaches of the circular economy by business structures and production, in particular through the introduction of benefits and a loyal tax policy. Among the main tasks, it is worth noting the maintenance of scientific research aimed at solving the urgent tasks of building an innovative socio-economic model and system of relations between society, the state and business. Further deployment of the set of technological changes in the form of the fifth industrial revolution provides optimistic forecasts for job creation. Despite warnings such as "machines will replace people in production", "robots will do work for people", it is considered possible to create new jobs. The reasons for this are expectations and forecasts regarding the production of modern equipment and materials. The growing potential of robotics makes it possible to predict opportunities for increasing labor productivity, rather than reducing jobs. The idea of a circular economy is that after consumption, goods are returned to a new cycle of production and recycled. Among the tasks of implementing the circular economy model are the environmental friendliness of production and its consumption and energy efficiency, which ultimately should contribute to solving more global tasks of preserving natural resources, preventing their depletion, etc. World practice proves that the model of the closed cycle economy can play a decisive role in achieving the goals of sustainable economic growth. It is an alternative to resource-intensive processes due to the maximum use of existing assets and the creation of new sources of income. There are a number of definitions of the closed cycle economy (circular, cyclical economy). Ambiguity in the definition of key concepts can become an obstacle to defining tasks at the policy level and defining the expected results of such an intervention. The concept of "closed-loop economy" can be broadly interpreted as a system in which the value of goods, materials and resources is preserved as long as possible. After all, what is considered waste in a traditional linear economy becomes an asset or resource in a closed-loop economy. In its essence, this economic model is considered regenerative (restorative) and aims to improve or preserve the state of natural resources, their optimal use.