Analysis And Research For Developing Circular Economy In China's Underdeveloped Areas

Circular economy is a new strategy of economic development, The implementation of the development strategy of circular economy not only is conducive to promoting the sustainable development of economy, society, resources and environment, but also reconciles the benefits of these three aspects into a harmonious whole and is also a concrete expression for emphasizing the scientific development outlook of coordination of economy and ecological environment. The features of circular economy are low-input of natural resources and environmental capacity, efficient utilization as well as low-emission of wastes. The core of these features is 3R principle i.e. waste reducing, reusing and recycling. Circular economy aims at achieving the most efficient utilization and maximum recycling of resources with minimum input so as to realize minimization of waste emission and ecologization of human economic activities so as to facilitate economic activities to be in accordance with the material recycling law of natural ecological system and eventually realize harmonious development of economic society and ecological environment.China's underdeveloped areas are mostly situated in the west. Western China is the cradle land for Yangtze River, Yellow River and other big rivers. It is also a vital ecological screen for the central and eastern areas of the country as well as the primary inhabited area of ethnic minorities. However, it is also China's vulnerable eco-region. Due to harsh natural conditions and inconvenient transportation, the social economic development of vast regions of underdeveloped areas is extremely backward. Poverty-stricken and situated in China's vulnerable eco-region, the underdeveloped areas shoulder the great task of speeding up the economic development and building an ecological screen. Therefore, there is still a long way to go for the underdeveloped areas to fulfill the important task of achieving sustainable development. Since the beginning of reform and opening up, China's underdeveloped areas have entered an unprecedented premium development phase in history and made remarkable achievements in economic development. However, it should be noticed that China's economic development in underdeveloped areas also shows the following characteristics: First, the development is very imbalanced throughout the country. Generally speaking, these areas are still lagging far behind the national average development level. Second, the underdeveloped areas still have extensive poverty coverage. Third, with the continuous progress of economic globalization, the challenges and difficulties in economic development confronting the underdeveloped areas will be even more serious. For a long period of time, the development strategy in underdeveloped areas has given priority to economic growth. This strategy is characteristic of greater attention to resources development and neglect of ecological development and environment protection. . If we continue to follow the old pattern of development, the underdeveloped regions will not only find it difficult to obtain valuable benefits, but also accelerate their own marginalization. Consequently, they will not only fail to narrow the development gap between themselves and the developed areas, but also enlarge rural-urban, inter-regional and social group wealth gaps. Meanwhile, if the underdeveloped areas with vulnerable ecological environment act against economic laws and disregard the existing economic and social disparities, more serious damages to the natural environment will be incurred and consequently agriculture, forestry, animal husbandry production in these areas will be confronted with overall recession as well as economic and social stagnation. If these areas do not address serious attention to the protection of ecological environment and focus only on economic efficiency, developing economy at the cost of excessive deforestation and damages to grasslands, they will inevitably face the tragic outcome of shortage of water resources, soil erosion, increased frequency of disasters and intensified pollution resulting in further deterioration of ecological environment and an impediment for sustained and coordinated economic development. Under such circumstances, what should be studied in depth and analyzed as major theoretical and practical issues are how to have innovative thinking, how to seek the integration point for economic development, social progress and protection of ecological environment, how to establish a development model not only in accordance with the requirements of the modern market economy but also fulfilling the goal of building a well-off society in an all-round way as well as meeting the needs of the new industrialization path and how to put the three main objectives of economic development, social progress and environment protection into a unified framework so as to achieve 3D integration and win-win results. Against the background of China's proactive exploration and vigorous promotion of circular economy, how to develop circular economy in underdeveloped areas, as a focus for study, has great theoretical and practical indications for the underdeveloped areas to get rid of poverty and backwardness and promote a coordinated development for economy, society and population and resources and environment.At present, for the development of underdeveloped areas, domestic scholars have proposed a lot of suggestions. Some argue that the underdeveloped areas should mainly orient to the development of their rich natural resources; some advocate the development of unconventional high technology; some maintain that the ecological environment has already deteriorated in the underdeveloped areas, and we can no longer follow the old path of resources development and should orient to development of ecological environment accompanied with development of eco-economy; some hold that, because of the backward infrastructure in underdeveloped areas, infrastructure development should be the central task. The above views from different perspectives have analyzed the economic development and industrial orientation in underdeveloped areas and are of certain referential values for the actual formulation and implementation of relevant strategies. Given the current serious situation of resources and ecological environment, the exploitation and development in the underdeveloped areas in China must not follow the old path of "developing first and harnessing later" at the cost of ecological degradation and environment damage. In author's point of view, we must focus on the vastly different natural conditions and different characteristics of current development situations in underdeveloped areas, as well as on the balance between speed, quality and benefit; earnestly implement the five "overall plans", realize the harmonious development of population, resources and environment, pursue the unity of material, ideological and ecological progress so as to achieve constant improvement of people's living quality, social progress and peaceful living and happy work for people. In a long period to come, with the scientific development outlook of the 16th Party Congress serving as the guideline and according to the respective special factor endowment structures, underdeveloped areas shall formulate reasonable development strategy for rational industrial deployment, optimization and upgrading. In particular, great efforts shall be made to introduce and promote the advanced concept of circular economy and efforts shall also be made for deepened development of the practice models suited to the factor endowment structure of underdeveloped areas so as to accomplish in real sense comprehensive, coordinated, sustainable and integrated development.This paper is divided into nine chapters. The introductory chapter introduces the background and significance of the research, defines relevant concepts and illustrates. the research framework, research methods, innovations, research thinking and contents. Chapter 1 reviews research on recycling economic theory and provides a literature summary for developing circular economy in underdeveloped areas. The major ideological origins include: Marxist economic theory; industrial ecology of western economics, theory of sustainable development and latest research on recycling economic theory by domestic and foreign scholars. The research literature will form the theoretical basis for research on developing circular economy. Chapter 2 outlines the evolution of circular economy, further analyzing respectively small and medium-sized recycling economies and large-scale recycling economies. Chapter 3 analyzes regional differences for developing circular economy in China and concludes regarding the regional feature of developing circular economy that "it demonstrates a ladderlike pattern among eastern, central and western areas. In spite of some typical successful patterns of circular economy in underdeveloped areas, the development model of circular economy has not bee popularized in the majority of underdeveloped areas". Chapter 4 further analyzes the conditions for developing circular economy. Chapter 5 makes in-depth analysis on many difficulties for developing circular economy in underdeveloped areas. Based on the previous analyses, Chapter 6 sums up the thinking and framework for developing circular economy in underdeveloped areas. Chapter 7 analyzes in depth the system for developing circular economy in underdeveloped areas and points out specific innovation plans on the planes of property rights system, industrial policy system, the legal system and incentive mechanism. Chapter 8 analyzes in depth the technological innovation for developing circular economy in underdeveloped areas. Chapter 9, taking the practice of circular economy in underdeveloped areas as an example of empirical analysis, provides a solid foundation for further promotion of developing circular economy in underdeveloped areas.The paper applies the basic principles and analytical framework of industrial ecology with reference to Marxist economic theory and western economics. From the perspectives of theoretical and empirical research, it adheres to the integration of gross analysis and individual analysis as well as quantitative analysis and qualitative analysis to make a systematic analysis on developing circular economy in underdeveloped areas. Based on existing research achievements, this paper is attempting to make some innovations in the following respects:First, it systematically reviews the ideological origins of circular economy theories. Through sorting domestic and foreign economic theories of circular economy, the author puts forward the basic theoretical foundation in an innovative way which can be divided into two parts: First, theory of sustainable development; second, theory of industrial ecology. The theory of sustainable development and the theory of industrial ecology are the basic theories for the research on circular economy and the two theories provide integrated and systematic thinking for optimizing the relationship of components of human system under the guidance of ecology. They also provide a strategic paradigm for the transfer from traditional economic models since the beginning of industrialization to sustainable recycling economic model nowadays;Second, through careful analysis of the current recycling economic model in practice, this paper proposes that the development of circular economy on the individual, organizational (households, businesses and industries and so on), regional as well global planes must be based on the resource endowment structure and the comparative advantages. We shall explore the practice model of developing circular economy adapting to comparative advantage and avoid blindly developing circular economy for catching-up purpose. We should put opportunity cost of social welfare and resources allocation efficiency of catching-up economy into "revenue-cost" accounting system for developing circular economy and make a comprehensive trade-off in order to find out the optimum scale and optimal speed for developing circular economy;Third, it analyzes and discusses the most appropriate amount and optimal speed of reducing from the micro and macro planes, which is the primary principle of 3R principles of circular economy;Fourth, it puts forward the thinking and framework with practical meaning for developing circular economy in underdeveloped areas, analyzes and discusses in depth the operability of the model of interactive development between circular economy and ecological environment;Fifth, it puts forward for the first time the concept of harmony degree in the research of circular economy, and points out that promoting the interactive development of circular economy and ecological environment in underdeveloped areas is an effective way to constantly raise the harmony degree as well as a solid foundation for building socialist harmonious and recycling society in underdeveloped areas;Sixth, put forward specific strategy of institutional innovation for developing economy in undeveloped areas.