Circular Economic System Under Political Economy Through Institutional Participation and Good Governance: In Search of Attainment of Dynamics of Macroeconomic Stability

Abstract

The political economy plays an important role in good governance with institutionalisation and environmental scanning. This can assist in alleviating social injustice and reducing income inequality in an emerging economy, alongside an expanded formal sector and equitable growth. Macroeconomic stability can lead to favourable outcomes for the overall socio-economic landscape of a country, depending upon the effectiveness of a circular economy. Implementation of SDG-10 is vital for the social and financial inclusion of the people. This study examines whether the circular economy can contribute to achieving a substantial, planned and participatory democracy, thereby advancing institutional participation through good governance to attain macroeconomic stability. We found that contributory and participatory governance arrangements are essential for pro-people government and can be regarded as a criterion for effective participation. This can be facilitated through the circular economy to achieve macroeconomic stability dynamics in an emerging economy like Bangladesh.