Cyclic Economy in a Globalized World

Department of world and national economy, Voronezh State Forestry Engineering University Named after G.F. Morozov, 8 Timiryazeva Street, Voronezh 394087, Russian Federation

Abstract

The article is devoted to solving the problems of the development of a cyclical economy in the conditions of globalization, since the further development of society while maintaining the current growth rates of production and consumption with increasing population can lead to a global catastrophe. The traditional development model is based on intensive industrial growth and resource-intensive infrastructure. In a global cyclical economy, it is necessary to separate economic growth from resource consumption, focusing on preserving value in order to protect ecosystems and natural capital. The aim of the work is to develop tools for the transition to a cyclical economy in the context of globalization. The research methodology is based on an analysis of international and national legislation, scientific publications and ongoing projects for building elements of a cyclical economy. To model the development of cyclical development in the context of globalization, economic opportunities are identified based on specific indicators and identified barriers for which solutions and policy options are developed. For the practical implementation of the ideas of a cyclical economy, government measures are needed to overcome institutional, economic and political barriers. The transition to a cyclical economy leads to an increase in transaction costs, uncertainty, opportunistic behavior. The concept of a cyclical economy is global in nature and represents a systemic shift that shapes long-term sustainability, creates economic opportunities and provides environmental and social benefits.