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The Circular Economy is a Luxury Only the Rich Can Afford

Posted on May 22, 2025 By Dante No Comments on The Circular Economy is a Luxury Only the Rich Can Afford

As the world grapples with the environmental and social consequences of its addiction to waste and consumption, the circular economy has emerged as a beacon of hope. But beneath the hype, a harsh reality exists: the circular economy is not a solution for the many, but a privilege for the few.

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In theory, the circular economy is a closed-loop system where resources are kept in use for as long as possible, extracting the maximum value from them, and recovering and regenerating materials at the end of their service life. Sounds great, right? But the truth is, this system is often inaccessible to the very people who need it most – the poor and marginalized.

Take, for instance, the city of Lagos, Nigeria. The metropolis is a hotbed of informal waste management, with millions of people living in poverty and relying on makeshift waste collectors for their livelihoods. While the city’s residents are desperately in need of a circular economy, they are also the ones being priced out of its benefits. Circular economy solutions like industrial composting and waste-to-energy facilities are often too expensive for small-scale waste collectors to adopt, leaving them to continue relying on dirty and inefficient practices.

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Similarly, in the United States, the circular economy is often framed as a middle-class solution, with consumers encouraged to buy expensive, high-tech products that can be easily recycled or reused. But what about the millions of low-income households that can barely afford to buy new products, let alone the specialized equipment needed to recycle them? For them, the circular economy is a luxury they simply cannot afford.

So, what’s behind this disconnect between the theory and reality of the circular economy? One reason is that many circular economy solutions are designed with the needs of wealthy consumers in mind, rather than the needs of marginalized communities. Another reason is that the circular economy often depends on complex technologies and infrastructure, which can be difficult to scale up and deploy in low-income settings.

But this doesn’t mean the circular economy is a lost cause. In fact, there are many examples of circular economy solutions that are being designed and implemented specifically for low-income communities. For instance, in Rwanda, a network of informal waste collectors has been trained to use specialized equipment to sort and collect recyclables, creating a thriving circular economy that benefits both the environment and the community.

To truly make the circular economy a reality for all, we need to rethink our approach. We need to design solutions that are accessible, affordable, and relevant to the needs of marginalized communities. We need to support the development of circular economy infrastructure in low-income settings, and provide training and capacity-building programs for small-scale waste collectors and other stakeholders. And we need to recognize that the circular economy is not just an environmental issue, but a social justice issue that requires a fundamental shift in the way we produce, consume, and waste.

By doing so, we can create a circular economy that is truly circular, truly sustainable, and truly just – one that benefits all people, regardless of their income or social status.

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