Circular economy in Bosnia and Herzegovina

Year 2023, Volume: 5 Issue: 1, 35 - 39, 30.06.2023

Zijad Dzafic , Admir Omerbašić

https://doi.org/10.58251/ekonomi.1287906

Cited By: 2

Abstract

The degradation of the environment is one of the most urgent challenges today. Since the industrial revolution, we have only known the model of linear economy that deals with the relationship between growth and consumption with the creation of large amounts of waste. As an alternative, a new the concept of the modern economy, the circular economy. The underlying assumptions of such a system are characterized by a tendency towards efficient use, and recycling and re-use of resources as it would limit the negative environmental impacts of the economy, while reducing costs in economic activities with the aim of economic growth. Our goal in this paper is to highlight the role and significance of the circular economy (CE) and natural resources in the process of creation of competitive advantages in a globally connected world as well as in Bosnia and Herzegovina. Our companies have preferred the mass production method of material wealth based on the mass consumption of natural resources as the main economic development method while pursuing high economic growth and maximum economic profit. These days, this economic development method faces various limitations. Many problems, such as mass generation of wastes exceeding the natural purification capacity, enormous damage environment, deepening of natural disasters and global warming, various disputes surrounding natural resources. This analysis highlights that the use of CE tools can help economic policy makers and researchers to take into account the impact on the environment during strategic planning activities and projections of economic growth in BiH.

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