Chapter 21: A Perspective Algorithm of State Management of the Process of Formation and Innovative Development of the Circular Economy in Developing Countries

Developing countries need the circular economy urgently and, at the same time, they face large difficulties on the path of its creation. One of the difficulties consists in unpreparedness of the social environment and even vivid social opposition to the changes that are connected to transition to the circular economy. Most developing countries’ cultures value and stimulate traditions, and innovations are mistrusted. Circular economic practices require the change of certain traditions of social behavior and economic activities and full cancelation of other traditions – which causes their negative treatment in society.

Also, despite the high level of education, peculiar for a lot of developing countries, they have low (as compared to developed countries) level of buyer sophistication and responsibility regarding the environment, concern with the problem of climate change, and unpreparedness to pay more for eco-efficient goods and services. Low demand is a signal for business, which eliminates marketing stimuli, thus hindering the development of corporate ecological responsibility.