Circularity & Informality: Redefining Narratives

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.