Analysing frugal as well as circular economies and exploring their relevance today
With the developed economies recovering from the slump of recession, which was largely but not entirely the pandemic and global conflicts induced, we can witness how the central banks and governments are trying their hardest to offset the impact of the economic downfall by injecting into the system an array of monetary and fiscal support. There still exists the dark cloud of imminent inflationary pressures that have the potential to drag behind the pace of the economic recovery in the upcoming financial years. Here, a sustainable alternative would be frugality, wherein the growth is ensured through doing more, with less. It refers to making simple, affordable and resource-efficient solutions by coherently channelising efforts to ensure essential functionalities through the use of locally available resources. In a frugal economy, we ensure that less effort and resources are expended by refurbishment. This frugal economic model has paid high dividends in the developed countries of the European Union and, if incorporated the right way, can help in the rejuvenation of the developing economies like that of India. An in-depth analysis of the currently developed economies cajoles us into concluding that frugal innovation is on the rise in emerging markets and it can be a way towards making quantum leaps by developing economies, like India, to transition into a developed one. The Catch Up effect might be a western concept and a true catching up might be a little too far fetched but what can bring the developing economies closer to catching up, is frugal innovation. Frugality is a global phenomenon which is making its way into a multitude of paradigms currently and India needs to get into the bandwagon before it's a bit too late and it is left behind because to do more, with less is the way to sustain and accumulate wealth.
A frugal economy needs the backing of a circular economy. The core concept of a circular economy is having a sustainable alternative which promotes a shift from the take-make-dispose cycle and paves a way towards renewability. It thus becomes an area of innovation & green technologies that enable a circular flow of used materials and, in the process, lead to employing a second set of people to enable a closed-loop supply chain. In circular economies, recycling shines as a pivotal aspect with special emphasis on the five Rs of recycling. It, thus, ensures frugality by inculcating sustainable as well as innovative strategies and technologies which shift a focus towards an efficient use of resources, sustainable consumption and reducing waste out of the overall system.
In today's globalised economic sphere, frugal engineering, alongside a circular economy, holds the key towards having a sustainable economic advantage, leveraging the four keys of the VRIO framework, understanding the fact that a nation inculcating frugality would do it in a case specific manner, thereby the exact model can't be replicated owing the the differing metrics like scale, demographics, etc. So, while all economies make the switch, the countries that make the transition first, would be the bigger beneficiaries, in the long run.
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About the author,
Sarbanga Mishra
Sarbanga Mishra, a Christ University Bangalore graduate, has served as a journalist at The Indian Express. With around 300 national-level accolades in debating, MUNs, researching and writing alongside case competition wins at IIT Madras and IIM Calcutta amongst others, he also has bagged multiple best research paper awards from Delhi University. He emphasizes on academic research and soft skills which can be substantiated by his accolades and invitations as a judge/guest speaker by sundry IITs, IIMs, NITs, DU, Symbiosis, KIIT, Manipal, Jindal, SRM, XLRI, NMIMS, Christ, LSR, SRCC amongst others. Passionate about international law and relations, he calls reading and research his “metaphorical crushes.
