Can Abstract Ideas Generate Change? The Case of the Circular Economy

281 Leading Change in a Complex Wo ld: T ansdisciplina y Pe spec i es Can Abs ac Ideas Gene a e Change? The Case o he Ci cula Economy CHAPTER 15 Can Abs ac Ideas Gene a e Change? The Case o he Ci cula Economy ERKKI-JUSSI NYLÉN Takeaways o Leading Change The e is en husiasm o ans o ming ou economic model om a linea o a ci cula one. Howe e , sol ing his wicked p oblem is a all o de : The socio-ins i u ional en i onmen in which his ans o ma ion mus be d i en is complex. The e a e also complexi ies, disc epancies, and con lic s o in e es ela ed o ci cula economy (CE) hinking i sel . E en hough he change owa ds he CE is complex and con adic o y, he concep o he CE o e s a good objec i e o pu sue. CE hinking is a change p o oking amewo k o ac o s o o ien hei ac ion o p ac ices. The p omo ion o he CE illus a es how ou lining isions and iden i ying a ge s o change suppo s he change making p ocess and p o ides guidelines o he ac o s in ol ed. Ne e heless, he sp ead and in e nalisa ion o he concep emains c i ical o change making. I enough ac o s in e nalise, accep , and suppo he idea o change o some deg ee, i is qui e p obable ha hey will o ien hei ac ions acco dingly. Analysing how an abs ac concep such as he CE can – o canno – gene a e change eaches us impo an lessons abou how majo changes can be ealised. 282 Leading Change in a Complex Wo ld: T ansdisciplina y Pe spec i es Can Abs ac Ideas Gene a e Change? The Case o he Ci cula Economy T ans o ming he cu en unsus ainable economic model is pe haps he mos complex p oblem o ou ime. The economy is o e s epping he biophysical bounda ies o he plane , and he way in which he economy is p esen ly s uc u ed has caused g a e en i onmen al p oblems. Howe e , enac ing sys emic change gea ed owa ds mo e sus ainable al e na i es is challenging. The e a e nume ous ac o s and con lic ing in e es s nes ed in he way ou economies wo k, and such a change could ip he balance in e ms o who loses and who gains. Alloca ion o esou ces, which lies a he hea o he economy, c ea es added complexi y. The ealloca ion o esou ce lows has he po en ial o c ea e dis us and cause majo ha m. Fo example, i ood p ices would ise signi ican ly as a esul o s uc u al changes o he economy. The ask o guiding i on o a sus ainable pa h is a wicked p oblem – elen less, uncons uc ed, and c oss-cu ing. This chap e discusses he ci cula economy (CE), which o e s one possible way o sol e he wicked p oblem o s ee ing he economy in a mo e sus ainable di ec ion. The unde lining objec i e o he CE is o change he logic o how he economy wo ks. The pu pose o his chap e is o analyse he change making ha CE hinking p o okes. The p omo ion o he CE illus a es how abs ac ideas can lead o change: i shows he way in which i is possible o gene a e momen um o la ge-scale change in a complex con empo a y socie y. I use he no ion o CE hinking o e e o he logic and change making objec i e upon which he CE model is based. In ollowing sec ions, I explain wha he CE is and how i has become a opical concep . A e ha , I will discuss why making he ans o ma ion owa ds a CE is challenging in con empo a y socie ies, and why i is di icul o change he old ways o doing hings, e en i hey can be The pu pose o his chap e is o analyse he change making ha CE hinking p o okes. The p omo ion o he CE illus a es how abs ac ideas can lead o change: i shows he way in which i is possible o gene a e momen um o la ge- scale change in a complex con empo a y socie y. 283 Leading Change in a Complex Wo ld: T ansdisciplina y Pe spec i es Can Abs ac Ideas Gene a e Change? The Case o he Ci cula Economy seen as sub-op imal o unsus ainable. I will hen p esen he concep o ideological s ee ing, which o e s a mo e speci ic amewo k o analysing how an abs ac idea such as he CE can gene a e change. Finally, I will discuss how he p omo ion o CE ela es o he dynamics o change, he in e nal and ex e nal challenges o CE, and he implica ions o leade ship o change. Wha is he Ci cula Economy? To me, he ci cula economy is p obably he nex s ep in he e olu ion o en i onmen al ecology, whe e he economy and he en i onmen eally emb ace each o he and change he wo ld (Si a, 2015)� The abo e s a emen e lec s he abs ac hopes and isions ha shine h ough in he CE discou se. The ci a ion is om Johanna Pi inen, Di ec o o Co po a e Responsibili y o Konec anes, a la ge Finnish company. She pa icipa ed in a panel discussion ha discussed he oppo uni ies and challenges o he CE in p ac ice (Si a, 2015). He message is s ong, hope ul and o wa d looking; bu a he same ime qui e abs ac . Wha does i ac ually mean o he economy and he en i onmen o emb ace each o he ? Fu he mo e, why should hey emb ace each o he ? The message is p ima ily abou en i onmen al p oblems and sus ainabili y issues ha de i e om how ou economy cu en ly ope a es (Boulding, 1966; S e en e al., 2015). La ely, he CE has been p esen ed as a way o ackle hese issues (e.g. And ews, 2015). On a gene al le el, CE hinking conce ns emodelling he economic sys em. The CE is he opposi e o he cu en ly p e ailing model, he linea economy, which is based on he logic o “ ake-make-use-dispose”. This logic does no conside su icien ly he ma e ial bounda ies o he plane . The linea economy es s on he assump ion ha he e is plen y o “ ake” and always space o “disposal”. Fo he linea model o h i e, he ma e ial h oughpu equi es con inuous accele a ion, which means g owing amoun s o “ aking”, and, a he o he end, g owing amoun s o “disposing” (And ews, 2015; Ju gile ich e al., 2016; Webs e , 2013). 284 Leading Change in a Complex Wo ld: T ansdisciplina y Pe spec i es Can Abs ac Ideas Gene a e Change? The Case o he Ci cula Economy The aim o CE hinking is o mo e om open-ended ma e ial lows o closed ma e ial lows. This means esou ces ha a e b ough in o he p oduc ion and consump ion sys em – in o he sys em o “making and using” – should s ay he e o as long as possible. This should esul in much less aw ma e ial ex ac ion and much less disposal o ma e ials as was e. The p ac ical means o achie ing his objec i e de i e om wo hema ic se s: he i s is he ecological design o p oduc s and se ices. The second is he u ilisa ion o end-o -li e p oduc s and ma e ials (i.e., sus ainable was e policy). The change p o oking se up o CE hinking is illus a ed in Figu e 1. The scien i ic con ibu ions o he CE s em om disciplines like en i onmen al economics, ecological economics, indus ial ecology, sys ems heo y, pe o mance economy, and c adle- o-c adle hinking (And ews, 2015; Ghisellini, Cialani, & Ulgia i, 2015; G egson, C ang, Fulle , & Holmes, 2015; Sil a, S ocke , Me cieca, & Rosano, 2016; Webs e , 2013). The sha ed ac o o hese schools o hough is hei conce n o he sus ainabili y o he cu en model o p oduc ion and consump ion. In his chap e , I will analyse he gene al mechanism o how an abs ac concep like he CE can gene a e change. To do so, I will u ilise he concep o ideological s ee ing (Meadowc o , 2007). Mo eo e , I concu wi h Femma Blomsma and Ge aldine B ennan (2017) ha he CE is an umb ella concep , which Paul Hi sch and Daniel Le in (1999, p. 200) de ine as Cus ome alue as subjec i ely de e mined cons uc Cus ome alue as mul i-dimensional in na u e Ci cula low o esou ces Ecological design Less aw ma e ial ex ac ion Less disposing o ma e ials as was es F om a linea economy A ci cula economy Towa ds Take Make Consume Dispose FIGURE 1. The CE aims o bend he logic o p oduc ion and consump ion om being open ended owa ds a closed loop 285 Leading Change in a Complex Wo ld: T ansdisciplina y Pe spec i es Can Abs ac Ideas Gene a e Change? The Case o he Ci cula Economy “a b oad concep o idea used loosely o encompass and accoun o a se o di e se phenomena.” The CE as an umb ella concep ac s as a amewo k ha ga he s o he help ul and like minded concep s benea h i . Unde he same umb ella-like, change making objec i e, ools and p ac ices can oge he c ea e g ea e momen um o change. Ye , as his chap e shows, change does no necessa ily come easily. C ea ing Momen um o Socie al Change Fo an abs ac idea o gene a e socie al change, a se o di e gen and in luen ial ac o s need o mobilise behind i . La ely, CE hinking has been gaining such momen um ac oss Eu ope. The idea has been p omo ed ac i ely by he Eu opean Union (EU), wi h he Eu opean Commission p esen ing a CE policy package in 2015. The Eu opean Commission does no see he CE only as a la ge-scale s uc u al change o guide he economy on o a sus ainable ack. I also iews i om he s andpoin o he compe i i e ad an age, business oppo uni ies, and job c ea ion. In Eu ope, he CE s a ed o make i s way in o public discou se as a esul o p omo ion by he Ellen MacA hu Founda ion. Since i s es ablishmen in 2010, he ounda ion has p obably been he mos in luen ial p omo e o CE hinking (Hill, 2015). In Finland, Si a, he Finnish Inno a ion Fund, has been simila ly in ol ed. Si a is a public ounda ion supe ised by he Finnish Pa liamen ; i s objec i e is o p omo e he economic p ospe i y and he u u e success o Finland (Si a, 2017a). One o hemes Si a has chosen o i s u u e-o ien ed wo k is he p omo ion o a “ca bon-neu al ci cula economy” (Si a, 2017b). Si a p omo es his h ough p ojec unding and publishing epo s p esen ing he CE in a posi i e ligh (e.g., Si a, 2015; 2016). C ea ing momen um o change also in ol es o ganising semina s in which in luen ial ac o s pa icipa e. When he EU published i s CE policy package, Si a held a semina on he opic a he p es igious Finlandia Hall in Helsinki. Speeches we e gi en by Eu opean Commission Vice-P esiden Jy ki Ka ainen, Finnish Minis e o Ag icul u e and En i onmen Kimmo Tiilikainen, Membe o Eu opean Pa liamen Heidi Hau ala, and co- p esiden o he Club o Rome Ande s Wijkman, o name a ew (Si a, 2017c). 286 Leading Change in a Complex Wo ld: T ansdisciplina y Pe spec i es Can Abs ac Ideas Gene a e Change? The Case o he Ci cula Economy Clea ly, he e is a buzz a ound he idea o he CE, bu p es igious semina s and speeches om he uppe echelons o socie y coun o no hing unless change happens a he g ass oo s le el. I CE hinking is o b eak h ough, he s ill-abs ac CE discou se mus ansla e in o ac ual changes in he p ac ices o p oduc ion and consump ion. The mos ob ious example o hese p ac ices is ecycling. O he examples include was e u ilisa ion, u ning p oduc s in o se ices, sha ing economy p ac ices, and ecological p oduc design. The la e means ha p oduc s should be designed o be upda able, easy o epai , and pollu an ee. Fu he mo e, hey should be eusable and/o minimize he amoun o was e c ea ed du ing hei li e cycle. Digi alisa ion opens up oppo uni ies o he c ea ion o o ums whe e ac o s can exchange goods. One o hese is he ResQ Club (2017), which is a sma phone applica ion ha enables es au an s o o e hei le o e meals a a discoun o p e en ood going o was e. Locked in o he Old Ways o Doing Things In his sec ion, I will discuss he complex socio-ins i u ional playing ield whe e he ans o ma ion owa ds he CE is being d i en. As he p e ious sec ion showed, he e is momen um o change. Bu when conside ing he agenda o CE hinking, he magni ude o he change equi ed is huge. Changing he p e ailing logic o how esou ces a e mo ed and channelled in he economy is a all o de (c . wicked p oblems). Such change is challenging o wo easons. Fi s , he old ways o doing hings – he incumben echnologies and p ac ices – a e likely esis an o change. Second, he socio-ins i u ional en i onmen whe e change is d i en is complex. The con empo a y socio-ins i u ional en i onmen has become mo e complex and polycen ic om he pe spec i e o powe dis ibu ion. This also ela es o he ansi ion “ om go e nmen o go e nance.” In p ac ice, his means ha ins ead o con ol and coe cion, adminis a ions nowadays use sub le ways o s ee ing socie y. This is because powe has been dis ibu ed ho izon ally and e ically. This has led o inc eased complexi y in he ways in which socie al de elopmen is s ee ed. The e icali y o powe dis ibu ion means he na ion s a e is no longe he undispu ed 287 Leading Change in a Complex Wo ld: T ansdisciplina y Pe spec i es Can Abs ac Ideas Gene a e Change? The Case o he Ci cula Economy nexus o powe . Ins ead, he impo ance o he local and global has g own ( o example, ci ies and he Eu opean Union). The ho izon al dis ibu ion o powe means ha nume ous ins i u ions o he han he na ion s a e’s adminis a ion and policymake s ha e a say on he di ec ion in which socie al de elopmen should be s ee ed. These ac o s include co po a ions, in e es g oups, social mo emen s, esea che s, and hink anks, and hey o en ha e di e ging in e es s. The polycen ic powe dis ibu ion and he di e ences o in e es s enhance he ole o dependencies and ne wo ks be ween ac o s in he p ocess o s ee ing socie al de elopmen . I is unlikely ha a single ac o can de ine he di ec ion o de elopmen . Ins ead, he objec i es o de elopmen and means o p oceed mus be nego ia ed by di e en ac o s. This is no an easy p ocess, since change is no in he in e es s o all pa ies (E ans, 2012; Meadowc o , 2007; Pie e, 2000; Pie e & Pe e s, 2000). The concep o lock-in explains why he old ways o doing hings enjoy huge ad an ages compa ed o adically new echnologies and p ac ices. I illus a es ypes o di icul ies change make s a e up agains , as change mus ake place in g ass oo s le el p ac ices o s ee p oduc ion and consump ion on o a sus ainable ack. Fi s , incumben p ac ices and echnologies a e al eady amilia and es ed. They migh also ha e a p e- es ablished in as uc u e, a ne wo k o supplie s and cus ome s and sui able egula ions in place (Meadowc o , 2009). Second, he pa ies behind incumben socio echnical p ac ices ha e poli ical le e age, as James Meadowc o (2009, p. 329) no es: Economic ac o s associa ed wi h es ablished echnologies a e no en husias ic abou al e na i es ha would ende hei compe encies obsole e� And since economic s eng h (in es men , income, expo s, employmen ) can be con e ed in o poli ical in luence, hey can place subs an ial hu dles in he pa h o nascen i als� The complex socio-ins i u ional en i onmen and ad an ages possessed by es ablished p ac ices sugges i is di icul o s ee he de elopmen o con empo a y socie y owa ds he ype o change en isioned by CE hinking. The e a e many in luen ial ac o s in con empo a y socie ies who 288 Leading Change in a Complex Wo ld: T ansdisciplina y Pe spec i es Can Abs ac Ideas Gene a e Change? The Case o he Ci cula Economy ha e some hing a s ake in socie al de elopmen . While some ac o s a e sa is ied wi h he way hings a e and migh di ec ly o indi ec ly obs uc a emp s o de ia e om he s a us quo, o he s p omo e di e en ways o doing hings. In addi ion, some ac o s migh p omo e a qui e speci ic ype o de elopmen , o example, aming de elopmen in a way ha di ec ly bene i s hemsel es. When alking abou change o such a huge magni ude, he e a e bound o be pa ies om each ype. O e u ning he old ways o doing hings is ha d e en when incumben echnologies o p ac ices a e sub-op imal. When alking abou socie al change, he e is no such a hing as a clean sla e; change always un olds agains some so o an inhe i ed se up (Lähde, 2013). This inhe i ed se up has a de ining his o y. I is ne e heless possible o c ea e momen um o la ge scale change in complex and polycen ic socie ies. The ollowing sec ion in oduces he concep o ideological s ee ing, which shows how momen um o change can po en ially p oduce esul s in complex con empo a y socie ies. Ideological S ee ing: The In e play Be ween he Conc e e and he B oad Ken Webs e (2013), Head o Inno a ion a he Ellen MacA hu Founda ion, has lis ed six emp a ions o be a oided when alking abou he CE. The i s one hi s a he hea o James Meadowc o ’s (2007, p. 311) concep o ideological s ee ing: Temp a ion#1 is o be oo conc e e� (Webs e , 2013, p� 545) Acco ding o Webs e (2013), he p oblem o being oo conc e e is ha i can na ow he iew o he issue. On he o he hand, being oo b oad can esul in being oo ague. The concep o ideological s ee ing encapsula es he in e play o he conc e e and he b oad in e ms o e o s o s ee socie al de elopmen . Meadowc o (2007, p. 311) de ines ideological s ee ing as “ he de elopmen o se s o in e - ela ed ideas ha 289 Leading Change in a Complex Wo ld: T ansdisciplina y Pe spec i es Can Abs ac Ideas Gene a e Change? The Case o he Ci cula Economy in luence ac i i ies a all le els.” Ideological s ee ing shows how concep s such as sus ainable de elopmen (SD) and he CE use hei abs ac and o e a ching na u e o hei bene i . These concep s can exceed he lines o poli ical posi ioning, bu hey can also wo k as a amewo k o building poli ical a gumen s. In his way, a se o ideas can c ea e consensus and p o ide ammuni ion in deba es. To illus a e, sus ainable de elopmen is commonly de ined as “de elopmen ha mee s he needs o he p esen wi hou comp omising he abili y o u u e gene a ions o mee hei own needs” (Wo ld Commission on En i onmen and De elopmen , 1987, p. 41). Tha de ini ion ises o he le el o he “common good,” and i is easy o ag ee wi h and di icul o di ec ly a gue agains . S ill, he e is plen y o oom o deba e abou SD. Decla a ions o he “common good” ype do no answe he ques ion o how SD is o be achie ed. Fo ideological s ee ing o wo k, abs ac and o e a ching concep s ha p o oke change need o be accompanied wi h o he , mo e conc e e concep s. These cla i y he di ec ion o socie al de elopmen . The mo e conc e e concep s e eal how change could be achie ed and wha i would look like in a speci ic con ex . While he in e play be ween he b oad and he conc e e is impo an o u he ing change, i is essen ial o ac o s in some deg ee in e nalise and accep ideas ela ed o change. The in e nalisa ion o ideas can mani es as commi men s owa ds change. Widesp ead accep ance and commi men o change can enable he u ilisa ion o mo e conc e e ins umen s o u he de elopmen . These conc e e ins umen s include o example, adjus ing egula ion, c ea ing new ins i u ional ac o s, unding, and collabo a ing in di e en ways (Meadowc o , 2007). When analysing he p omo ion o he CE om he poin o iew o ideological s ee ing, he same kind o logic applies as wi h SD. The objec i e o he CE is o bend he linea “ ake-make-use-disca d” economy in o a ci cula one, and in ha way o make he economy sus ainable. I is easy o endo se his objec i e and di icul o di ec ly disag ee wi h i . Howe e , he objec i e o he CE does no in i sel e eal how such change should be pushed h ough. This is whe e he conc e e comes in, which in he case o he CE means he p ac ices o ecycling, ecological design, was e u ilisa ion, e c. I should also be no ed ha when he discussion mo es om gene al le el decla a ions o he speci ics o change making, he e 296 Leading Change in a Complex Wo ld: T ansdisciplina y Pe spec i es Can Abs ac Ideas Gene a e Change? The Case o he Ci cula Economy Fa la, J., Ma ka d, J., Ra en, R. R., & Coenen, L. (2012). Sus ainabili y ansi ions in he making: A close look a ac o s, s a egies and esou ces. Technological Fo ecas ing and Social Change, 79(6), 991–998. h ps://doi.o g/10.1016/j. ech o e.2012.02.001 Geo gescu-Roegen, N. (1977). 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The Case o he Ci cula Economy Leading Change in a Complex Wo ld: T ansdisciplina y Pe spec i es Copy igh © 2019 Tampe e Uni e si y P ess and he au ho s Edi ed by Anni Kangas, Johanna Kujala, Anna Heikkinen, An i Lönnq is , Ha i Laihonen and Julia Be hwai e Tampe e: Tampe e Uni e si y P ess