1. Building resilient Regions and Cities
Brussels, October 10th, 2017
Jerzy Hausner
Department of Economics and Public Administration Cracow University of Economics
Jerzy Hausner
Department of Economics and Public Administration University of Economics in Krakow

2. The value in a linear economy

3. A Closed-Circuit Economy

4. An elegant solution … (by Jonathan Cullen 2017)
The circular economy, is a simple elegant concept …
... we take out current linear, take-make-dispose model for industry, and shift it to a circular model.
The materials now go round and round, waste is eliminated, and business makes more and money as products get sold over and over again.
Resource loops are closed, and econmic development is magically decoupled from environmental impacts.
Easy right … if only we had thought of this earlier!!! Perpetual motion ....

5. … the current reality (by Jonathan Cullen 2017)
The circular economy, is a simple elegant concept …
... we take out current linear, take-make-dispose model for industry, and shift it to a circular model.
The materials now go round and round, waste is eliminated, and business makes more and money as products get sold over and over again.
Resource loops are closed, and econmic development is magically decoupled from environmental impacts.
Easy right … if only we had thought of this earlier!!! Perpetual motion ....

6. Specific characteristics of the Closed-Circuit Economy
It is more labour intensive than the raw material exploitation
Remuneration is lower on average
It is energy intensive
The costs are often higher than the economic benefits
It is profitable mainly to large corporations
The profits gained by one party (in one area) is often due to the loss of another party (in other areas)
Economic growth cannot be founded on it as there is not enough waste

7. Closed-Circuit Economy - Conclusions
Occurrence of short and long loops
Need to shift from the process design to the system design
Linear and closed-circuit economies will co-exists
Closed-circuit management mitigates consequences of linear management and opportunistic market game but it does not overcome them
Expectations towards closed-circuit economy are exaggerated and naive – it can be the means not the goal
And, as all the means, it has to be used with attention and moderation

8. City circular economy - a special Krakow example What we have so far?
Expanded university structure
Very high number of students
Many off shore business service centres
Growing number of relatively well-paid jobs.
But still far away from circularity.
Exploitation of existing resources, but minor level of their multiplication and improvement

9. City circular economy - a special Krakow example What we should aim?
Missing links of value-creation spiral:
Business R+D centres
Their collobaration with universities in this area
Shared creation of knowledge
Better university education – higher human capital
Upgrading of manufacturing and service processes
Much higher city development potential.

10. Triple helix – a linear economy perception
Public authority
Business
University
+ People
Źródło: Lombardi 2015

11. Triple helix – a circular economy perception

12. A developmental circularity
Time dimension appears here
Spirality creates new opportunities for operations as the developmental spiral means creating new social relations that have not been observed so far
It is not a loop; it is an irreversible developmental change
THE DEVELOPMENTAL SPIRAL

13. Three approaches to time in the Greek thought
aion
chronos
kairos

14. THE OPEN EYES ECONOMY SUMMIT
14-15 NOVEMBER 2017
ICE KRAKOW