The Intersection of Social Welfare and Circular Economy in Greece

Abstract

This research examines social welfare in the municipality of Nea Smirni (Attica, Greece) in the context of circular economy. Social welfare is the most neglected factor in the circular economy literature. Economic and environmental benefits monopolize academic studies, while a core value of the circular economy framework is social sustainability. In this study, we used the factors constituting social welfare in terms of circular economy to examine Nea Smirni, a model of an urban thriving community. The purpose of this study is to identify if the social factors that promote social welfare in this Greek municipality overlap with the social factors that facilitate the advancement of circular economy policies. The analysis revealed a strong match between academic literature and social welfare factors in Nea Smirni. The principal factor driving the success of circular economy policies is culture and the sense of shared identity among the members of the community, rooted in the long-lasting history of the citizens and their ancestors. 

To reference this paper: 

Vlachou, I., 2024. The intersection of social welfare and circular economy in Greece: The case of Nea Smirni. In Towards Circular: Analysis of the coastal areas of Greece, Italy and Spain. Edited by Skupchenko, J.K. Think Tank AlterContacts. Available at: https://www.altercontacts.org/publications/towards-circular-2024/gr-sd-1 

DOI: 10.13140/RG.2.2.28513.31841

Introduction

Extreme climate phenomena come and go, armed conflicts burst in parts of the world where war seemed an outdated memory, and revisionist and populist ideological movements overrun the political dialogue of all democratic states. People seek solutions for a better future amidst a rising price crisis and stagnant economic development. Here comes a new economic growth model based on environmental sustainability and economic prosperity, a circular economy. The circular economy framework is not new as a theory, but the interest in this model has risen exponentially in the last decades since the linear economic model seems to cause irreversible environmental degradation.

As in every new economic framework that aims to bring changes, society plays a vital role in the implementation and success of the venture. This is exactly what we aim to unveil in this research. We seek to understand how social welfare co-exists or enforces a circular economy. Our case study is the Nea Smirni municipality in Athens. This community is famous for its quality of life, usually associated with villages and smaller local communities. Through exploring the social factors that contributed to this success story and comparing them with social indicators within the circular economy framework, we came across very interesting findings. According to the results of this research, the differentiating factors that enhance the implementation of circular economy initiatives in this community are culture and the sense of common identity among the citizens of Nea Smirni. 

Methods

In this study, we conducted a literature review of the academic research on the subject of social welfare in the circular economy framework, and using this theoretical basis, we explored similarities in our case study, Nea Smirni. The data for the theoretical basis were derived from recent academic papers (published after 2017), as well as the official publications of international and regional organizations, such as the European Union, the United Nations, and the OECD. The information gathered for the circularity of the Greek economy and the community of Nea Smirni consists of academic papers, public sector, municipal and local organizations archives, and press articles. 

The academic research chosen for this study was published in the last decade, as the relationship between circular economy and social welfare is a relatively new research field. This paper will follow a linear observation of the information, starting from the relationship between social welfare and circular economy and continuing with a literature review on social aspects of a circular economy, a short reference to the circularity of the Greek economy, and a case study on social welfare in Nea Smirni.

In our research, we will investigate whether this thriving Athenian community contributes to the development and implementation of circular economy initiatives. In other words, what makes the municipality well-known for the quality of life and satisfaction of its citizens? Do these factors overlap or are the same as the factors of social welfare that contribute to circular economy implementation (or vice versa)? What does this community have to contribute to the circular economy and social welfare literature?

The Importance of Circular Economy 

The circular economy is a broad and complex theoretical framework that cannot be explored in this research. Here, we will briefly mention why a circular economy is important for development and, therefore, for society as a whole. This will enable us to understand how a circular economy is inherently associated with social welfare. 

According to Prieto-Sandoval, Jaca, and Ormazabal (2018), the circular economy is perceived as a useful framework for change at various decision-making levels, from private sector stakeholders to international and regional organizations and national and local governments. Shouldn’t we then know what this new tool does for our society or what social factors contribute to its implementation? 

Researchers underline that social welfare as part of the circular economy is not a mainstream research theme (Valencia et al., 2023; Padilla-Rivera, Russo-Garrido and Merveille, 2020, Oliveira et al., 2021, Mies and Gold, 2021, Kirchherr, Reike and Hekkert, 2017, Moreau et al., 2017, Geissdoerfer et al., 2017, Murray, Skene and Haynes, 2019, Prieto-Sandoval, Jaca and Ormazabal, 2018). According to Kirchherr, Reike, and Hekkert (2017), the circular economy does not appear to have a single commonly accepted definition by most of the academic community. The United Nations (2023) and the European Union (2023), representing the two stakeholders with the most influence in sustainability matters, accept circular economy to be a different approach to the linear economy, with the main characteristics to be the “reduce, reuse, recycle” model (Padilla-Rivera, Russo-Garrido and Merveille, 2020). Furthermore, in every academic source that explores the potential of circular economy, the main objective for its utility is sustainability. In other words, the circular economy comes as the eco-friendly answer to the linear economy. 

Since the academic community does not agree on a specific definition of circular economy, it is very challenging to propose one single definition for social welfare in terms of circular economy. This study will use the following definition as a guiding point for understanding the concept: "Social welfare in a circular economy context is defined as the improvement of quality of life, job creation, and social equity through sustainable and regenerative practices." (Oliveira et al., 2021).

At this point, we must clarify that this study does not aim to identify if the literature on social factors or their impact on circular economy is enough or well implemented. This study aims to use simplified theoretical tools of literature on social aspects and social welfare within the circular economy framework to explore and, if existent, to identify specific circular economy indicators related to social welfare in the community of Nea Smirni, which is known to be a thriving community concerning quality of life and citizens’ well-being. 

Social Welfare and Circular Economy

As mentioned above, research on the impact of social aspects of circular economy is a field with limited documentation. The circular economy has drawn a rising interest in recent years. This makes the theoretical framework looser and, in the case of social welfare, very narrow, as mentioned above. In this section, we will document and simplify the relationship between social aspects and social welfare within the circular economy framework to examine the compatibility of this framework with our case study, Nea Smirni.

The most obvious correlation between circular economy and social welfare is the fact that every change in the economic model and regulatory system creates consequences for consumers and is implemented by the consumers (Oliveira et al. 2021; STAGL 2020). Therefore, society and the circular economy framework are intertwined. Even though the connectivity of social factors and social welfare with every economic development or new theoretical framework is usually acknowledged and measured, in the case of circular economy, many researchers underline that the academic literature regarding circular economy is focused on economic and environmental factors (Padilla-Rivera, Russo-Garrido and Merveille, 2020), clearly underestimating, or neglecting the social dimensions (Valencia et al., 2023, Padilla-Rivera, Russo-Garrido and Merveille, 2020, Oliveira et al., 2021, Mies and Gold, 2021, Kirchherr, Reike and Hekkert, 2017, Moreau et al., 2017, Geissdoerfer et al., 2017, Murray, Skene and Haynes, 2019, Prieto-Sandoval, Jaca and Ormazabal, 2018). In particular, Kirchherr, Reike, and Hekkert (2017) have undergone an integrative study of 114 definitions of the circular economy and observed that social dimensions are almost absent. Valencia et al., 2023 have also conducted massive literature research on the papers of circular economy that include or actively investigate social dimensions, and their findings are fascinating. According to their research, the social welfare and societal factors contributing to or enhancing the implementation of circular economy initiatives have been researched in the last decade, with a steep upsurge in 2020. 

As mentioned above, sustainability lies at the center of the circular economy. In sustainability studies, we observe the same underrepresentation of the social factors, but in this case, a categorization between environmental, economic, and social aspects of sustainability is commonly accepted (Padilla-Rivera, Russo-Garrido, and Merveille, 2020). As Murray, Skene, and Haynes (2019) support, the social dimension is crucial for the “three pillars” (environmental, economic, social) sustainability model and, therefore, circular economy to succeed. On this matter, Kirchherr, Reike, and Hekkert (2017) showcase that among the dozens of circular economy definitions investigated in their study, only a low percentage includes the three dimensions, and a very low one investigates the social indicators. 

A different explanation is that of Moreau et al. (2017). Here, the researchers not only emphasize the vital role of social aspects as equal to economic and environmental, but they also put society at the center of the circular economy. When social sustainability becomes the foundation, circular economy policies will result in the amelioration of the social welfare state and nature for the citizens and future generations (Moreau et al. 2017). On this matter, Oliveira et al. (2021) conclude that the predominant factors for a realizable circular economy model are the stance of communities and stakeholders towards localization, intensifying communities, and moving away from the modern pattern of overconsumption. In other words, they emphasize the necessity for the simultaneous and coherent development of social, environmental, and economic sectors for the successful implementation of circular economy policies involving all stakeholders. 

On the same point, according to Mies and Gold (2021), social sustainability is an indispensable part of the circular economy framework because of the “cooperation and interdependence” of people participating in its successful implementation. In the same study, they explore the facilitating factors towards a circular economy by different stakeholders; they found that the most commonly raised issues for local communities have been “development, participation in circular economy projects, education, community well-being, and employment.” A significant finding is that local communities play a decisive role in the implementation of such initiatives, and a top-down effort by municipal authorities to introduce and promote these policies has a positive impact on citizens’ participation, community enhancement, and identity building.

Taking into consideration the definition we mentioned above, there are some recurring aspects of social welfare within the circular economy framework. The most common in the bibliography is job creation, a fundamental aim of related policies for the EU (STAGL, 2020). Sustainability is an undeniable factor for social welfare (Moreau et al., 2017), which includes equity (Valencia et al., 2023) and well-being, terms that in most studies are translated into employment, health, safety, and participation (Padilla-Rivera, Russo-Garrido, and Merveille 2020; Valencia et al. 2023). Well-being is rather uncommon as a term in the literature related to circular economy (Mies and Gold 2021; Geissdoerfer et al. 2017). Key facilitating factors for the successful transition to circular economy measures are collaboration, legal changes, education, and active involvement of all social actors (Mies and Gold, 2021). We should note here that Oliveira et al. (2021) and Mies and Gold (2021) found culture to be a positive indicator for the completion of circular economy reforms.

Social welfare factors

To summarize the information above, we will use the categorization of factors that constitute social welfare in the context of the circular economy proposed by Valencia et al. (2023). This sorting will allow us to search for specific criteria of social welfare in the community case study of Nea Smirni. The main categories that constitute social welfare are: “quality of life, equity, diversity and inclusion, social cohesion/collaboration, democracy/governance, and maturity (Valencia et al., 2023).

A more simplified version is that of Padilla-Rivera, Russo-Garrido, and Merveille (2020). They proposed four categories for social sustainability within the circular economy: “labor practices and decent work, human rights, society, and product responsibility.” The categorization is broader and includes factors that could be perceived as socio-economic. Though it is beneficial to note these terms for our understanding of the case study, we will use only the society sub-categories, which are “social inclusion, social networks, social cohesion, participation and local democracy, anti-corruption, public policy, compliance, cultural traditions, and local communities” which are overlapping with the broader categorization of Valencia et al. (2023), and we will use the terms interchangeably.

Greece and Circular Economy

Since we examine Nea Smirni, a municipality in Athens, Greece, it would be beneficial for our understanding to briefly explain where the Greek state stands regarding the implementation of circular economy initiatives. As it is broadly known, the Greek economy has undergone a massive reform implementation era due to the 10-year-long economic crisis. Despite the last two years of economic growth in Greece, the country must catch up in several areas of spending-intense policies to align with other EU member states; this includes climate-related initiatives and infrastructure (OECD, 2024).

Greece has become an emerging player in the renewable and sustainable energy sector of the Mediterranean and energy safety of the European Union (Enterprise Greece, 2024). Although foreign investment flows again in the country and energy reforms are implemented, this does not necessarily mean that policies move towards circular economy policies.

The study of “Dianeosis,” an independent research and analysis organization, has gathered data on the circularity of Greek public policies and the sectors that require reforms (Vettas et al., 2022). In Greece, the citizens consume less than the European average – partly because of the economic crisis – and consequently have less wastage. The management of solid waste is far behind the European average when 77,6% ends up in waste burial landfills; the target set for the country is 10% by 2030 (Vettas et al.2022, Ministry of Environment and Energy, 2018). The country is very close to the European average when it comes to recycling packaging. We can conclude from the data above that Greece has shown progress regarding recycling and green/renewable energy. However, there is still a lot to be done in applying the three-phase framework of circular economy “reduce-reuse-recycle” (Padilla-Rivera, Russo-Garrido, and Merveille, 2020). As Vettas et al. (2022) underline, the Greek economy is far from being characterized as circular, and the biggest issues are managerial (public and private) obstacles and consumer behavior. The principal suggestion in this report’s proposals for the advancement of the circular economy in Greece is to inform and educate the consumers and students on the matter. Greece has a positive record for similar initiatives, as we can identify from the success of recycling projects around the country.

Nea Smirni and Social Welfare

Following the theoretical basis of circular economy and social welfare, as well as the circularity of the Greek economy, we can delve into the unique character of Nea Smirni. This big Athenian municipality is selected for the quality of life of its citizens, mostly elderly people and families with kids, who enjoy a more slow-paced everyday life, with many elements of an older era, such as farmers’ markets, knowing everyone in their neighborhood, having their local coffee spots and friends in walking distance as their everyday entertainment. They seemingly live a village-pace life, with the commodities of the country’s capital. But is Nea Smirni a paradigm of community cohesion and well-being, or a community that has not evolved as fast as the rest of Athens, and due to this reason, it has preserved the “feeling” of a village?

Indeed, the municipality of Nea Smirni provides the citizens with all modern commodities, public health centers, schools, green places and parks, sports infrastructure, and many outdoor and indoor entertainment activities in collaboration with the plethora of small and historic local organizations and associations, with an accommodating transport (metro, tram, buses) and parking system. To understand the character and unique advantages that this area provides, we need to delve into the location and historical evolution of this area. 

Nea Smirni is a municipal community that is located within a 10-minute driving distance from the historic city center of Athens, situated between the city center and the Athenian Riviera. In other words, this suburban area is a “crossroad” for inhabitants of the central and southern parts of the city and is surrounded by the municipalities of Neos Kosmos, Palaio Faliro, Agios Dimitrios, Dafni, and Kallithea (Newsroom, 2023). We should note that Kallithea is the most densely populated city area and one of the most densely populated capitals of Europe. On the other hand, Nea Smirni, despite the vast increase in its population (Newsroom, 2023), has succeeded in maintaining a high quality of life for its citizens (Newsroom 2023, Tzanatou 2024, The Guardian 2020).

This area of Athens has a special and long-lasting history that explains many aspects of the citizens' everyday lives today. Nea Smirni was founded by Greek immigrants who came to Greece after the Greco-Turkish war of 1919-1922, which ended with a loss by the Greek army and with more than a million immigrants who were hunted, killed or expelled by the nationalistic movement of Neo-Turks in the falling Ottoman Empire (The Editors of Encyclopedia Britannica, 2016).

According to the official data of the municipality (Municipality of Nea Smirni, n.d.), in the area of Nea Smirni came an amalgam of immigrants from different parts of Turkey, but mainly by the cosmopolitan and wealthy region of Smyrna (today’s Izmir). At that time, the area consisted of only landfills that were inhabited by dozens of people. The immigrating population that came and founded Nea Smirni were middle- and upper-class citizens who brought their culture and civilization to their new homeland. 

In contrast with other refugee areas, these immigrants collectively demanded the area to be in the urban residential plan of Athens, while other refugees were living in temporary settlements, tents, and state welfare aid. This was the beginning of a cohesive community, where the immigrant population set a goal to bring the old homeland to Greece and keep their culture at the center of their new life (Municipality of Nea Smirni, n.d.). We should note that the Greek Orthodox Church and the clergy played a vital role in the development and execution of the urban plan, as well as the cohesion of the population and the revival of the immigrant’s social life. The archive of the municipality (Municipality of Nea Smirni, n.d.) reveals that the city, in the beginning, was designed to include many green places and to be sparsely populated. The years after the residential progress came the Second World War. The war postponed the continuous development of the community, but the collective efforts of the citizens after the War started to pay off again, and the economic life rebounded. After 1950, it was time for the community to receive new immigrants, the Greeks of Istanbul. A new cycle of development and cultural integration starts again. Today, the municipality of Nea Smirni consists of around 72.000 citizens and constitutes one of the most economically successful municipalities in Greece. 

At this point, we should underline that the integration of immigrants in Greece was a massive effort for the devastated state after the war. The citizens of Nea Smirni, already in their first years in the new homeland, started to form strong community ties and promoted their cultural identity. The first local association was the Central Club of Nea Smirni. The collective efforts of this association promoted infrastructure projects such as the transport connection of Athens city center with Nea Smirni, which was implemented with the private financing of the citizens (Municipality of Nea Smirni, n.d.). 

Throughout its history, the community has promoted its cultural wealth by keeping its culture relevant with local activities and events. Today, there are more than twenty associations and organizations related to culture and the immigrant roots of the citizens, dozens of sports clubs, and the most well-known organization in Greece for the immigrants of 1922, Estia Neas Smirnis (Municipality of Nea Smirni n.d., Axipolitos n.d., Newsroom 2023). This organization, located in the center of the city, in an emblematic building, gathers under the same roof a library, the headquarters of the organization, and three Museums: the Byzantine Museum, Asia Minor Museum (the former toponym of today’s Turkish coastal regions where most immigrants came from), and an Art Museum. This Club has been operating for 92 years; it keeps alive the civilization and devastating stories of the first-generation immigrants who fled after the destruction of their homes and wealth in Turkey, but it also brings to life the success stories of these people in their new homeland. Events, educational seminars and classes, and the presence of famous immigrants from academia, arts, and the corporate world have facilitated the longevity and success of this club, which has become a trademark of community cohesion and cultural identity (Axipolitos, n.d.). 

The municipality’s calendar, in collaboration with cultural associations, is booked every month with a variety of events, music festivals, traditional dance festivals, theatre, and lectures regarding the Asia Minor culture and the modern culture that the immigrant community has maintained and enriched (Municipality of Nea Smirni, n.d.). In the area, the free journal ORIZONTES has been published since 1981, and it is distributed every month to 10.000 subscribers, an initiative that reflects the sense of community shared by citizens and their active interest in the developments in their region (Neoi Orizontes (New Horizons), n.d.). 

As in every community that has strong common identity ties, there is a local sports team; here is Panionios. This local football team was founded the first years after the resettlement of the population in Greece and is the heart of socializing and meeting every time a football match is scheduled (Tzanatou 2024, Newsroom 2023, Sinanidis 2019). As mentioned above, the sports infrastructure of the area varies and is home to many sports clubs for people of all ages and interests. A relatively new initiative that we should distinguish is the “historic run.” Organized by different local and national sports clubs, this marathon road was introduced in 2015 to pay tribute to the historic memory of the hard times the founders of the community lived and the culture they left behind, but more importantly, the one they brought with them (Historic Run, n.d.).

As mentioned above, Nea Smirni constitutes a crossroad for citizens of different parts of Athens. The small neighborhoods, parks, big and small squares, commercial streets, and cultural events all year round, coupled with the accessibility, make the city a meeting point for a relaxed coffee or night out for the population of the capital. The most famous is the central square, with the huge church of Agia Fotini, which was constructed to resemble the one destroyed during the war in Smyrna. This is a spot with coffee shops, bars, and restaurants for every taste, attracting both locals and tourists. The differentiating factor for Nea Smirni is the local shops in every neighborhood that the local community supports and vice versa. For the last two decades, Greece has been devastated by the economic crisis and steadily recovering. The fact that we can meet so many small business owners who are second or third-generation running a business reflects the ties of this community and the continuation between the years (Tzanatou, 2024).

It is clear from the information we have presented that this community has a unique ability to connect and unite through history and their sense of common identity, be “self-organized” through collective community initiatives, and seek changes that will benefit their well-being and quality of life. On the matter of circular economy specifically, from the data we can derive from the official municipality page on the circular economy, we can understand that in Nea Smirni, as mentioned earlier for Greece, the vast majority of policies focus on recycling. The municipality has succeeded in a more developed system than the Greek state in terms of waste management, with policies such as food wastage (brown bins/composting), domestic oil collection, and battery recycling. It is important to note that the municipality provides an established network of awareness and educational projects for locals and students not only on recycling but also on circular economy benefits (Municipality of Nea Smirni, n.d.). The municipality focused the last decades on keeping the city clean, and as researched by Vardopoulos et al. (2020), it constitutes one of the very few successful paradigms of waste management in the Greek state. 

The local authorities and the vast and populous associations have managed to provide a wide range of health, support, sports, and cultural amenities for every citizen. It is notable that Nea Smirni, before the 2000s, had the same municipal authority for twenty consecutive years – elected for four consecutive terms (Municipality of Nea Smirni, n.d.). This may seem negative to many, but in a country where most Greek national governments do not accomplish to complete their four-year term and run to elections prematurely (General Secretariat of Legal and Parliamentary Issues, n.d.), we can conclude that this stability has benefited the local welfare and infrastructure projects. 

Agenda and Future Research

The study of the community of Nea Smirni provides us with some findings that are potentially beneficial for the theoretical framework of social welfare and circular economy. This community, described as “the urban village” of Athens (Tzanatou, 2024), reveals that the less studied element of social welfare and social sustainability, culture, plays a vital role in promoting successful circular economy policies. The municipality promotes new policies of circular economy, and the public participates and trusts the expertise of the authorities because they share the same history and the same vision for the quality of life in the city. This community identifies that more similar case studies must be researched. The circular economy is a model that has as a prerequisite the commitment to humanitarian values. The fundamental value of cohesive communities, as Nea Smirni, rests in the well-being of citizens and the collaboration to achieve the common vision. Historical memory and common roots always provide the common ground for people to share not only the past but also the future. 

The United Nations states that the success of a circular economy will be, in part, due to reducing overconsumption and looking with different eyes at the practices that older generations followed, such as respect for the environment and the individuals, as well as the circularity that many Indigenous groups demonstrate in their way of living (United Nations Development Programme, 2023). Apart from Indigenous societies, though, other communities share a sense of common identity and live closer to sustainable environmental standards. 

Nea Smirni represents such a paradigm with a distinctive history, and indeed, a rare example of cohesion (in a densely populated city), that the level of localization resembles practices of the past and benefits the environment. It is uncommon for capitals to showcase such cohesive communities, but it would be of great interest if we observed the locations in big cities where circular economy policies are evolving faster. Are there areas cohesive culturally and historically that promote initiatives and values of the circular economy that follow forgotten practices of the older generation? 

This kind of cohesion and shared identity is also present in smaller towns and villages. The fact that such regions usually lack infrastructure and educational activities regarding circular economy policies could be an opportunity to observe whether their culture will facilitate the introduction and successful implementation of circular economy policies.

Conclusion

Based on the data we gathered in the literature review section, we can draw the following conclusions: Nea Smirni is a community that identifies with social welfare factors in the scope of the circular economy. More precisely, the quality of life in this community, as demonstrated by press articles and municipality records, is perceived as very high – infrastructure, education, community activities, health, safety, environment, and green places. Equity, diversity, and inclusion constitute the categories that, given the available data, we can propose that need more measurable results and research for their levels in the community today, but given the history of this community, we can conclude that they are integral parts of the social foundation. 

The community was founded by diverse groups of immigrants; in the 1950s, new groups were incorporated, and in the 2000s, the community saw an escalating rise in population, coming from other parts of the capital for the well-known by then quality of life that it offers. Social cohesion and collaboration constitute the focal point of its success. The sense of shared identity is the participation in clubs and organizations that have historical memory and cultural continuity as core values showcase a community with strong ties. Here, we should note that given the fact that Nea Smirni is a location for elderly citizens and families, the fundamental role that family holds in Greek society intensifies the social cohesion in the community. Social networks, local associations, and the longevity of businesses in the region facilitate constant communication and socialization, which benefits the population's cohesion and integration of new members. Democracy and governance, given the organized efforts of the municipality to constantly improve the quality of life, health benefits, safety, and education for the activities of the local government and their policies, results in a relationship of trust between the authorities and citizens. Following along with the participation of citizens of all ages in municipal activities, we suggest that Nea Smirni is a paradigm of governance that values the individual as well as the environmental well-being of the community. 

The final indicator is the maturity of the community. The collective efforts of the community for the success of local policies related to a circular economy showcase a strong collective participation in the vision of the municipality to constantly improve and follow the current developments and policy trends regarding social welfare. It is clear, at this point, that this community keeps history and cultural memory as their highest value to facilitate their collective effort to move forward. The first immigrants from Asia Minor were not held back by the devastation that they left behind; on the contrary, they founded one of the most thriving communities in their new homeland.

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