PREREQUISITES AND CHALLENGES OF UKRAINE'S TRANSITION TO THE CIRCULAR ECONOMY

Abstract

The article determines that currently the most important models of production and consumption, in particular and the economy as a whole, remain unsustainable and pose threats to Ukraine's national security. It has been established that it is the one-sided linear production process that exists so far that creates such threats. The traditional linear model of the economy is gradually leading humanity to a global crisis, and the negative consequences of the operation of such a business model over time become irreversible. It has been proven that increasing efficiency within the framework of the linear model (reducing the consumption of resources and fuel) leads only to the reduction of accumulated waste, but not to its re-circulation. The prerequisites for the transition to circular models of economic development are considered. The existing and potentially possible phenomena and factors that pose a threat to the vital national interests of Ukraine were analyzed and formulated on the basis of this, and it was also determined that they are the ones that prevent the possible transformation of Ukraine's economy on circular rails. Threats to the national economy that prevent the transition to a closed-loop economy are systematized and grouped into 6 main groups: in the sphere of resource use, in the environmental, food, social, energy and production spheres. It has been established that the implementation of a circular model of the economy can ensure the achievement of a number of advantages of an economic, ecological and social nature. It is concluded that a circular economy eradicates problems by reducing dependence on non-renewable resources. It moves countries' economies to a more efficient level, creating opportunities to deal with waste at the design stage, while preserving production, human, social, natural and financial capital. This was achieved using general scientific methods (system analysis, formalization) and methods of economic and statistical analysis (graphical, grouping, classification). The practical value of the conducted research lies in the development of specific recommendations that will allow, in the case of their application, to reduce the amount of extraction of primary resources, increase the efficiency of the use of already used resources, and increase the level of technological and socio-economic development on the ground. In view of this, the circular model of the economy should become the basis of the further economic development of our country.