Circularity in waste management system: An assessment of the recycling rate performance of developing countries

Abstract

Developing countries face many challenges, including waste management. As a general rule, those countries have limited public budgets, which inhibits investment in effective strategies for handling waste. At the same time, some developing countries are the world’s largest suppliers of goods. This latter fact has sparked concerns in developed countries regarding the pollution embodied in imports. Investments (particularly foreign investments) must, therefore, be directed towards countries aligned with the Sustainable Development Goals so that everyone can keep benefiting from international trade without neglecting the environment. To explore the issue of waste management, this study ranked developing countries according to their recycling rate performance by employing a Data Envelopment Analysis Model. In addition, using a Fractional Regression Model, this study analysed how developing countries can improve their performance. The results show a large disparity in performance between countries, with a standard deviation consistently above 0.33. Notable within-country variation was also observed, with some nations exhibiting marked improvements (e.g. Brazil rising from a score of 0.175 in 2015 and 1.000 from 2018 onwards). These patterns highlight both enduring structural differences and shifting national trajectories in waste management. Renewable energy production, control of corruption, and trade openness improve recycling performance in developing countries. However, a robust regulatory framework capable of tackling illegal waste dumping should also be a priority. Improved living standards seem to overburden developing countries’ recycling systems. Nevertheless, private investment—both domestic and foreign—in waste management infrastructure can help address the potential shortfalls in public funding and the lack of essential facilities.