Constructing a model of national production system for building a circular economy for international trade involvement

Maxim Polyakov,Volodimir Bilozubenko,Gennadij Shevchenko,Igor Khanin

doi:10.9770/jesi.2021.9.1(17)

Abstract

The paradigm of unlimited growth capitalism leads to an aggravating the problem of a natural resource shortage, an increase in waste and general pollution of the Earth. The concept of a circular economy (CE) is an alternative to this; it implies a transition to closed production and consumption cycles. The purpose of the article is to supplement this concept with ideas of integrating several rationalizing production models of the CE building at the national production system level, taking into account the country's participation in international trade. These model production models are “flexible custom manufacturing”, “distributed manufacturing” and “lean manufacturing”, which also means the widespread involvement of small and medium-sized enterprises. The use of digital technologies for a new quality of communication, as well as the creation of sharing centers, in order to achieve greater organizational and technological complexity of the production system is required. The CE building must take into account the country's participation in international trade. Attention is focused on the fact that the CE will have a different effect on certain types of international trade, in particular, it will stimulate such trade as: materials for processing, secondary raw materials, technologies, projects of finished products, RD digital platforms for interaction between producers and consumers; industrial parks, clusters and incubators for new industries, as well as technological, digital and organizational innovation stimulation.

Highlights

The purpose of the article is to supplement this concept with ideas of integrating several rationalizing production models of the circular economy (CE) building at the national production system level, taking into account the country's participation in international trade
The economic paradigm established in ХХ century and extrapolated in the beginning of XXI century is primarily focused on maximization of consumption
The most important thing is to achieve unity on the issues of the need to change the models of production systems in the context of CE building and to develop different thinking, which will enable to go through “reshaping” the established paradigm of “linear economy”

Summary

Introduction

The economic paradigm established in ХХ century and extrapolated in the beginning of XXI century is primarily focused on maximization of consumption. Due to the aggravated situation, the efforts to process waste, introduce resource and energy saving technologies, and form new production, supply and consumption chains have increased, which, in general, was named circular economy (CE) This concept implies recycling and cyclic use of materials, minimization of primary natural resources use, transfer to closed loop production and consumption, with due consideration of the local conditions. СЕ building is aimed to satisfy the growing demand, while achieving environmental sustainability by lowering the level of resource depletion and reducing waste generation and emissions This initiates a new round of industrialization as a part of the Fourth Industrial Revolution and other technological trends, because it is technologies that will enable to build an industry with minimum adverse impact on the nature

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Discussion

Conclusion