This paper explores the intersection of the circular economy and informal economies. The paper emerges from a series of participatory learning circles organized in partnership with Ashoka, IKEA Social Entrepreneurship, Circle Economy, and the UNDP Accelerator Labs. Drawing from diverse perspectives across 20+ countries, it discusses how informal workers, who engage in practices such as waste collection, repair, and recycling, are pivotal to the circular economy but often excluded from formal discourse on circularity. The document emphasizes that over 60% of the global workforce operates within the informal economy, contributing significantly to circular practices. Through three thematic learning circles focused on perceptions and drivers, system intersections, and enabling environments, the paper highlights key challenges and opportunities for recognizing and integrating informal workers into formal circular systems. Case studies, including those of waste pickers in the Ivory Coast and artisans in Brazil, provide practical insights into how social enterprises and partnerships can support informal workers, fostering sustainability and inclusivity. The paper advocates for nuanced formalization processes that respect local contexts and empower informal workers to thrive within the circular economy.
Authors
- Pages
- 12
- Published in
- Netherlands
Table of Contents
- BACKGROUND 3
- What is the circular economy 4
- What role do informal workers play in the circular economy around the world 4
- INFORMALITY AND THE CIRCULAR ECONOMY 4
- What shapes our view of the role of informal workers in the circular economy 5
- Who are the main actors operating at the circularity- informality nexus 5
- ROLES OF ACTORS IN INTEGRATING INFORMAL WORKERS INTO CIRCULAR VALUE CHAINS 6
- The role of social entrepreneurs 6
- DILEMMAS AT THE INFORMALITY- CIRCULARITY INTERSECTION 7
- STIGMA AND RECOGNITION OF INFORMAL WORKERS 7
- FORMALISATION AND REPRESENTATION 8
- CIRCULARITY AND INFORMALITY ARE THEY RELEVANT 9
- TWO CIRCULARITIES TOP-DOWN VERSUS GRASSROOTS 9
- REFERENCES 11
- ACKNOWLEDGEMENTS 12