Chapter 3: The Circular Economy in Low- and Middle-income Countries – A Tool for Sustainable Development?

Low- and Middle-income Countries (LMICs) rest at the lower end of the waste management developmental scale: self-managed waste, uncontrolled dumping and open burning, limited treatment facilities, weaker institutions and governance, and a low priority for financing. Conversely, many indicators are better in LMICs than in the Global North – lower consumption, lower levels of waste arisings, higher recycling rates and a productive informal reuse and repair sector – characteristics of sustainable resource use and of value retention/creation in a circular economy. Striving towards the UN Sustainable Development Goals (SDGs), particularly SDGs 1, 6, 8, 11 and 12 is, among other enablers, contingent on developing sustainable waste and resource management systems based on the principles of the circular economy. The developmental challenge in LMICs is to formalise and strengthen infrastructure, institutional capacity and waste retribution systems, while retaining the LMIC’s existing circular economy characteristics – decoupling waste generation, incorporating the informal sector, improving skills and education, and maintaining a thriving repair and reuse sector. Concomitant benefits include raised living standards, improved public health, decent and inclusive employment and prevention of environmental discharges. Case studies from Egypt, Ghana, Nigeria, India and Indonesia identify where meaningful interventions can be made, fundamental to enjoying the wider benefits of a circular economy.