




































AGORA International Journal of Economical Sciences, http://univagora.ro/jour/index.php/aijes 

ISSN 2067-3310, E-ISSN 2067-7669 

Vol. 18, No. 1 (2024), pp. 191-199 

 

191 

 

GLOBALIZATION DYNAMICS TO FOSTER GROWTH AND 

DEVELOPMENT WITHIN CIRCULAR ECONOMY: A CASE STUDY 

OF ALBANIA 

 

K. NIKOLLA 

 

Klea Nikolla  

Agricultural University of Tirana, Albania 

https://orcid.org/0009-0007-4407-0376, E-mail:  kleanikolla2136@gmail.com  

 

Abstract: The linear economy of today's society conflicts with many environmental, 

social, and economic challenges. As a result, policymakers and researchers prioritize the 

implementation of the circular economy concept. The European Union supports a smooth 

transition to a circular economy through the Circular Economy Strategy, the European Green 

Deal (carbon neutrality by 2050), and the United Nations' Sustainable Development Goals 

(SDGs). Replacing traditional business models with circular business models necessitates a 

shift in technology features that incorporate R strategies (refuse, reduce, recycle, etc.). This 

study looks into how globalization dynamics affect the transition to a circular economy, as well 

as the implications for growth and development. Albania, as a transitioning economy in 

Southeast Europe, provides an important backdrop for understanding the problems and 

opportunities given by globalization when embracing circular economic principles. 

Keywords: circular economy, waste management, innovation, globalization. 

 

INTRODUCTION 

Adequate waste management has been in the spotlight for the last decade, as recent 

media attention highlights the tragic impacts caused by anthropogenic activity on the 

environment. Due to industrial and economic activities as well as the ever-rising population 

growth worldwide, the amount of waste accumulated rises in all classifications: domestic, 

industrial, municipal, agricultural, commercial, etc. (Okedu et al., 2022). In this sense, the 

Circular Economy concept has gained increasing momentum in urban and business settings, 

while the public, policymakers, and members of the scientific community have given the 

Circular Economy considerable attention. The Circular Economy concept constitutes a system 

that tackles global challenges (i.e., climate change, waste, pollution, etc.) and is based on three 

main principles: (i) elimination of waste and pollution, (ii) circulation of products and materials 

in their highest value form; and (iii) regeneration of the natural environment. The main goal is 

to decouple economic activities from consumption patterns of limited resources. A circular 

economy constitutes a resilient system striving to leave nobody behind (Ellen MacArthur 

Foundation, 2017). However, policymakers can either facilitate or constrict the process by 

enacting a regulative climate,  increasing their authority and proper implementation of their 

https://orcid.org/0009-0007-4407-0376
mailto:kleanikolla2136@gmail.com


GLOBALIZATION DYNAMICS TO FOSTER GROWTH AND DEVELOPMENT WITHIN 

CIRCULAR ECONOMY: A CASE STUDY OF ALBANIA 

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policies, as well as boosting entrepreneurship (Kruja, 2020b; Ahmeti & Kruja, 2021; Maione 

et al., 2021). 

 

1.1 Circular Economy in the Focus of the European Union  

 In the context of developing a modernized and sustainable economy, in December 

2015, the EU Commission introduced the Circular Economy Package, which defines the 

economy as ‘where the value of products, materials, and resources is maintained in the 

economy for as long as possible, and the generation of waste is minimized. Because resource 

extraction and processing account for half of total greenhouse gas emissions as well as more 

than 90% of biodiversity loss and water stress, the European Green Deal1 started a coordinated 

approach for a climate-neutral, resource-efficient, and competitive economy. Scaling up the 

circular economy from early adopters to mainstream economic participants would make a 

significant contribution to attaining climate neutrality by 2050 and decoupling economic 

growth from resource use, while also maintaining the EU's long-term competitiveness and 

leaving no one behind. 

 

1.2 Circular Economy in Albania 

Regarding the situation in Albania, the circular economy concept is still in its early 

stages. Therefore, firms may play a significant role in driving the transition 

to sustainability through their participation in the circular economy (Heras-Saizarbitoria et al., 

2023, Marshall et al., 2023, Ting et al., 2023). The circular economy concept was introduced 

in the draft Integrated Waste Management Strategy (2018-2024) which was produced in 

January 2018. The revised Integrated Waste Management Strategy focuses on the concept of 

"zero waste," treating waste as raw materials and managing it through circulatory systems to 

preserve raw material resources. In the Strategy Policy Paper and Integrated National Waste 

Management Plan 2020-2035(The document of Strategic Politics and National Integrated 

Waste Management Plan 2020-2035) published by GIZ in collaboration with the Ministry of 

Tourism and Environment, the main aim, mentioned the very beginning of the document is the 

transition from a linear economy to a circular economy. This document develops on the vision 

or perception of the "zero waste" concept, that waste is collected and treated as raw material 

and management is to be done by the concept of circular economy systems, to benefit the 

standardized use and preservation of raw material resources. The specific objectives of the 

Strategic Policy Paper aim to provide practical solutions to:  

 Address issues in the current management system 

 Implement the legal framework in force  

Make the necessary preparations to meet the obligations arising from the amendments 

stipulated in EU Directives, including the ambitious objectives of the Circular Economy 

Package. 

 

Methodology 

https://www.sciencedirect.com/topics/earth-and-planetary-sciences/environmental-impact-assessment
https://www.sciencedirect.com/science/article/pii/S2352186423003000#b46
https://www.sciencedirect.com/science/article/pii/S2352186423003000#b46
https://www.sciencedirect.com/science/article/pii/S2352186423003000#b63
https://www.sciencedirect.com/science/article/pii/S2352186423003000#b95


Klea NIKOLLA 

193 

 

The present study is a result of a thorough analysis of the existing literature. Therefore, 

the methodology used is a literature review. It is a type of academic writing,  which helps in 

understanding a subject in detail. In this article, the sources of information were collected 

through a search engine named Google  Scholar by searching the following keywords: Circular 

economy,  waste management in Albania,  x.  The data are mainly extracted from local 

municipalities and the National Environment Agency and Institut of Statistics in Albania and 

also the Co-plan Report 2020 by the European Commission about Albania. 

 

Results  

Accurate and easily accessible data is necessary to assess the growth of the country's 

circular economy, particularly in key sectors. The evaluation of the current status of circular 

economy components in Albania is based upon the structure of the Monitoring framework and 

indicators put forward by the EU. 

 

Production and consumption 

Albania has had limited success in reducing waste output through circular economy 

manufacturing and consumption trends. When you expand this phase, the four indicators 

described in The monitoring framework will be discussed more below (QAK, 2020). 

According to data from the Institute of Statistics, the flow of goods increased by 1.2% 

to 25 billion ALL in September 2020, compared to the same month the previous year. In 2019, 

the flow of products decreased. 

Approximately 4% higher than in 2018. However, imports have consistently climbed 

by 19% between 2015 and 2019.29 Imports increased by 0.3% compared to the same time last 

year. During the first nine months of 2020, exports declined by 13.6% and imports by 10.9% 

compared to the previous year (INSTAT, 2020). 

According to 2019 statistics from the Institute of Statistics, there were about 1.2mil. ton 

of urban waste generated, where the dominant constituent is organic waste which counts for 

about 58.4% of total waste. The rest is a mixture of wood, paper/paperboard, glass plastics, 

textiles, metals, etc. listed in descending order. The major waste generators include the oil 

industry, cement production, steel and mining, and households. (Ibid) 

Food production generates waste throughout the manufacturing and delivery process. 

The majority of food waste comes from home cooking, restaurants, catering, and retail 

establishments. Food waste occurs when manufacturing resources, such as water, energy, and 

limited environmental resources, are wasted. Food waste undermines the circular economy 

concepts. Managing food waste properly is challenging due to a lack of data and variable waste 

generation sources. This would assist both societal budgets and the environment. (European  

Parliament, 2021). 

 

Waste management 

Sustainable waste management in Albania remains at a relatively low level, with urban 

waste management services only covering about 87.9% of the resident population, residing 



GLOBALIZATION DYNAMICS TO FOSTER GROWTH AND DEVELOPMENT WITHIN 

CIRCULAR ECONOMY: A CASE STUDY OF ALBANIA 

194 

 

mainly in urban areas (referring to INSTAT in 2019),  marking an increase of 22.2% compared 

to the previous year. The National Territory Council approved the National Plan for Solid 

Waste Management33 on January 1, 2020. The strategy aims to provide sustainable Solid 

garbage Management services across the country, including minimizing and recycling garbage, 

reducing uncontrolled and unsanitary deposits/landfills, and protecting the environment. The 

current strategy aims to standardize national waste management guidelines to align with EU 

legal frameworks, similar to the previous one (Qarkonomi, 2020). The approach aims to 

preserve both the environment and human health and can promote sustainable waste 

management by implementing policies, financing efficient practices, separating waste streams 

at the source, and encouraging businesses to recycle and reduce waste output. (World Bank, 

2019) Albania lacks the necessary infrastructure to manage waste in an environmentally 

acceptable manner, including decreasing, reusing, collecting waste separately, and recycling, 

which are the most ecological activities according to the waste hierarchy pyramid.  With linear  

Economy being our current economy model,  every product we buy and consume,  for instance, 

smartphones, is mostly purchased with the sole purpose of replacing old ones.  The latter gets 

disposed of and creates waste, resulting in larger issues for a planet with finite resources 

(Taylor, 2020).  

 

Secondary raw materials 

The usage of secondary raw materials accounts for a low or insignificant number of 

materials used for making new products, considering that the amount of recycled and reused 

wastes constitutes a small portion of the total waste volume.  

Metals: Scrap metal recycling is prevalent in Albania. Steel, aluminum, copper, and 

other metals are collected, processed, and reused in various industries.                                                                          

Plastics: Plastic recycling efforts have been increasing in Albania to mitigate 

environmental pollution. PET bottles, HDPE containers, and other types of plastics are 

collected and recycled into new products or materials.                                                                                                                        

Paper and Cardboard: Recycling paper and cardboard is another significant aspect of 

waste management in Albania. These materials are collected from households, businesses, and 

industries, processed, and reused to produce new paper products.                                                                         

Glass: Glass recycling programs exist in Albania, focusing on collecting glass bottles 

and containers. Recycled glass is melted down and used to manufacture new glass products.                   

Organic Waste: Organic waste, such as food scraps and yard waste, is often composted 

to produce organic fertilizers or biogas for energy generation.                                                                           

Textiles: Textile recycling initiatives are emerging in Albania to address textile waste 

from clothing and other textile products. Used textiles are collected, sorted, and either recycled 

into new fabrics or repurposed for various applications.                                                                                                    

Electronics: E-waste recycling programs aim to collect and properly dispose of old and 

obsolete electronic devices, such as computers, smartphones, and appliances. Valuable 

materials like metals and plastics are extracted for reuse, while hazardous components are 

disposed of safely. 



Klea NIKOLLA 

195 

 

Efforts to improve recycling infrastructure and promote sustainable practices are 

ongoing in Albania, driven by both government initiatives and private sector involvement. 

 

Competitiveness and innovation 

Albania is at an early stage of ensuring competitiveness and innovation, as seen by its 

numerous circular economy initiatives. Albania has been gradually enhancing its 

competitiveness and fostering innovation in recent years. Efforts include improving 

infrastructure, investing in education and skills development, and promoting entrepreneurship. 

Initiatives like the National Strategy for Development and Integration aim to strengthen the 

business environment and attract foreign investment. Additionally, the government has been 

focusing on digitization and promoting research and development to spur innovation across 

various sectors. However, challenges such as bureaucracy and limited access to finance still 

need to be addressed to further stimulate competitiveness and innovation in Albania. Advance 

sustainable practices for all parts of the circular economy. The Institute of Statistics collects 

data on creative contributions from small and medium-sized businesses in technology, 

telecommunications, and optical, electronic, and computer device manufacturing. 

The Centre for Competitive Skills in Albania conducted a quantitative study on Circular 

Economy Awareness and Sensitivity among the general public and businesses. (Qarkonomi 

2020). Questionnaires were distributed to the public and businesses to assess their familiarity 

with the term "circular economy."  

 

Figure 1 

Public Awareness of Circular Economy in Albania 

*Source: Study Report on Circular Economy Awareness & Sensitivity among General Public 

and Businesses (2020) 

 

Based on the Study Report on Circular Economy in Figure 1 about Public Awareness 

& Sensitivity 24% of the population are familiar with Circular Economy and have 

information, 37% are familiar and do not have any information and 39% have never heard 

about it. 

 

Figure 2 

Business Awareness on Circular Economy in Albania 



GLOBALIZATION DYNAMICS TO FOSTER GROWTH AND DEVELOPMENT WITHIN 

CIRCULAR ECONOMY: A CASE STUDY OF ALBANIA 

196 

 

 

 

 

 

 

 

 

 

 

 

 

 

*Source: Study Report on Circular Economy Awareness & Sensitivity among General Public 

and Businesses (2020) 

 

The data in Figure 2 represent that Online marketing, especially social media, is the 

main source of information among Albanians about the Circulating Economy, a finding which 

is consistent with the general information behavior of the country in recent years. Traditional 

media such as TV and Radio, have little role in this matter due to their low concentration in 

sustainability and chronicles of international development, and high concentration in the news 

local and daily. The audience complains about the lack of documentaries about science, 

technology, and new economic trends on Albanian television platforms. Newspapers, 

magazines, and academic publications are an important source of information for 37% of those 

familiar with the circular economy, followed by the educational system and groups of the 

environment. 

 

Figure 3  

The main barriers to Circular Economy in Albania 

*Source: Study Report on Circular Economy Awareness & Sensitivity among General Public 

and Businesses (2020) 

 



Klea NIKOLLA 

197 

 

Figure 3 above summarizes the perceptions of citizens and entities on the main barriers 

of circular economy implementation in Albanian to be lack of knowledge in general by all 

parties involved (58%); lack of pressure and awareness from the consumer side (54%); lack of 

interest among businesses (43%); lack of government incentives  (41%);  lack of laws 

framework and regulations (35%); increased costs for businesses (28%); corruption, poverty, 

low consumption (6%). Improving the circular economy in Albania involves a multi-faceted 

approach that addresses various sectors and stakeholders. Here are some strategies to enhance 

the circular economy in Albania: 

Policy Framework Enhancement: Strengthening policy frameworks to support circular 

economy principles is crucial. This includes implementing regulations and incentives to 

promote waste reduction, recycling, and sustainable production practices. Additionally, 

integrating circular economy principles into national development plans and strategies can 

provide a cohesive roadmap for sustainable growth.                                                                                                                

Investment in Infrastructure: Investing in infrastructure for waste management, 

recycling facilities, and renewable energy is critical. Building a strong infrastructure network 

will make it easier to gather, classify, and process resources, increasing resource efficiency and 

lowering environmental impact.                                                                                                                                           

Promotion of Innovation and Technology: Encouraging innovation and technology 

adoption can boost efficiency and sustainability across a variety of industries. Supporting 

research and development projects for eco-friendly materials, waste-to-energy technology, and 

circular business models can boost economic growth while reducing environmental impact.                              

Capacity Building and Education: Providing training and educational programs on 

circular economy ideas can increase awareness and capacity among enterprises, government 

organizations, and the general public. Workshops, seminars, and vocational training can all 

help to promote sustainable practices and develop a culture of resource conservation.                             

Encouragement of Circular Business Models: Encouraging enterprises to use circular 

business models such as product-as-a-service, remanufacturing, and sharing platforms can help 

to improve resource efficiency and reduce waste generation. Incentives, tax benefits, and 

financial support for companies that embrace circularity can help to drive adoption. 

Public-Private Partnerships (PPPs): Encourage collaboration among the government, 

private sector, and civil society organizations to drive circular economy initiatives. PPPs can 

use their resources, skills, and networks to create novel solutions and expand successful 

interventions.            

Consumer Awareness and Behavior Change: It is critical to educate customers about 

the benefits of circular economy practices and encourage them to adopt sustainable purchasing 

habits. Public awareness efforts, eco-labeling schemes, and green procurement rules can help 

customers make educated decisions and support firms that are committed to sustainability.  

Integration with Regional and Global Initiatives: Aligning Albania's circular economy 

goal with regional and global initiatives has the potential to improve cooperation, information 

exchange, and resource sharing. Participating in circular economy-focused international 

forums, collaborations, and networks can help you gain access to best practices, funding 



GLOBALIZATION DYNAMICS TO FOSTER GROWTH AND DEVELOPMENT WITHIN 

CIRCULAR ECONOMY: A CASE STUDY OF ALBANIA 

198 

 

possibilities, and technical assistance. By implementing these strategies in a coordinated 

manner, Albania can advance its transition towards a circular economy, fostering sustainable 

growth, environmental protection, and social well-being. 

 

CONCLUSIONS 

The need to implement and promote sustainable economic activity in the global market 

is increasing limited resources. The primary purpose of this research was to better understand 

what the Circular Economy is and how it benefits the Albanian market. CE attempts to preserve 

raw materials and keep them at their best value while minimizing pollution, which includes gas 

emissions, energy leakage, and water contamination. Circular Economy's business model is 

concerned with the sustainability of the environment. CE is not very common in Albanian 

business. The lack of local government to push the implementation of the circular economy 

business model is discouraging, however, it is willingness and determination to implement 

green behavior from companies in  Albania  and the said business model is only beginning to 

develop. The circular economy can address the problems of waste pollution and the depletion 

of raw materials from an environmental perspective.  In terms of business, the circular economy 

may be very advantageous and opportune for enterprises; it can help with brand extension and 

new market expansion. 

Improving the circular economy in Albania necessitates a multifaceted strategy 

combining governmental policy initiatives, private sector engagement, public awareness 

campaigns, and collaborative efforts among stakeholders. Key measures include the 

development and implementation of comprehensive policies promoting recycling, waste 

reduction, and sustainable production methods, alongside the establishment of Extended 

Producer Responsibility (EPR) programs. Investment in recycling and waste management 

infrastructure, coupled with the promotion of green technologies, will be crucial.                                                                

Additionally, raising public awareness through education campaigns and integrating 

circular economy concepts into educational curricula are essential steps. Supporting circular 

businesses with financial incentives and fostering collaboration among various sectors will 

further accelerate progress. Monitoring progress and adapting strategies based on evaluation 

findings are vital for sustained success in transitioning Albania toward a more circular 

economy. The linear model of consumption and production predominates, leading to resource 

depletion, environmental pollution, and landfill overflow. However, there is growing 

recognition among policymakers, businesses, and civil society of the need to transition towards 

a circular economy model. Efforts are underway to improve waste management practices, 

promote recycling initiatives, and encourage the adoption of sustainable production methods. 

Despite challenges such as limited financial resources and institutional capacity, there is a 

burgeoning interest in circular economy principles, driven by the potential for job creation, 

resource efficiency, and environmental preservation. As Albania endeavors to align with 

European Union sustainability goals and enhance its competitiveness on the global stage, the 

promotion of circular economy practices is becoming increasingly integral to its development 

agenda. 



Klea NIKOLLA 

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