1 Introduction

Insufficient waste collection and management is a core challenge for sustainable development as uncontrolled waste increases humanity’s vulnerability to climate change and pollution, and negatively impacts health and livelihoods of people in poor and marginalized situations (Kaza et al., 2018; Lavers et al., 2022; Persson et al., 2022). However, waste management cannot be seen solely as a technical issue, it is also a substantial governance challenge (Bhuiyan, 2010; Vallero, 2019). Around the world, diverse actors operate in formal and informal waste sectors (Gutierrez-Galicia et al., 2021). The formal sector refers to public and or private enterprises with a mandate for waste collection and management, while the informal waste economy comprises different types of unofficial waste handling businesses involving collection of recyclable wastes, sale, and reselling of recyclables (Harriss-White, 2020; UN Habitat & NIVA, 2022). Especially in the global South, the informal waste sector plays an integral role for collection, sorting, and recycling of waste (Velis, 2017; Valencia, 2019). As opposed to conventional views of a marginalized and vulnerable informal waste sector (Moreno-Sanchez & Moldanodo, 2006; Wilson et al., 2006), some informal waste workers are increasingly described as entrepreneurial individuals and micro-businesses being highly skilled within their occupations (Chandran et al., 2018; Harriss-White, 2020). While socio-economic vulnerabilities and structural marginalization persist within the informal sector (ESCAP, 2019; UNEP et al., 2019), examples illustrate informal waste workers being integrated in municipal solid waste management practices (see, for example, Serrona et al., 2014; Parra, 2017; Henam & Bandela, 2020). Nonetheless, beyond a few examples, the role of actors in the informal sector and its potential to complement formal waste management to increase regeneration of recyclable waste is not fully recognized and rarely integrated in solid waste management strategies and practice (see, for example, Sandhu et al., 2017; Nagarajan, 2022). This paper adopts a holistic system perspective, looking at both the formal and informal sectors’ contribution to waste collection and recycling efforts and the interactions between and within both systems.

Across countries and contexts, social relationships in informal sectors represent livelihood opportunities and means for survival (Adama, 2012; Meagher, 2005). For actors such as scrap dealers and waste pickers, the building of social relations and networks seems to be a necessity for successful trade and income generation, with implication for recycling and regeneration objectives (Gill, 2007). While social contracts in the informal sector have been discussed with reference to social protection (Alfers et al., 2021), few studies address the relations among and between formal and informal waste actors from a systemic perspective. This paper presents results from a study conducted between 2019 and 2023 in Bago City in Myanmar, investigating the role, relationships, and functioning of formal and informal waste actors. The following research questions guided the study: Who are the actors, what is their role in waste handling in the Bago City area? How do these actors interact, and what bonding mechanisms regulate relationships in the formal and informal sector? The study discusses the possible contribution of the identified bonding mechanisms to social capital, and associations with system functioning. Drawing on empirical information from Myanmar, it is argued that policy development needs to be anchored in knowledge of formal and informal sectors, including their relationships and challenges in the respective area. While the paper uses a case study from Myanmar to shed light on actors working with waste, the diverse interdependences and the complex social and institution dynamics represent general aspects that need consideration in waste management discourse to achieve aims of circularity and reduced environmental pollution from mismanaged waste.

In the following, the conceptual framework and methodology are described. The results are presented taking an analytical lens by mapping the actors, analysing their relationships, and looking at the bonding mechanisms that emerged between the actors. The effect of bonding mechanisms and a systemic perspective on the functionality of the actors are discussed. Finally, the concluding section summarizes the findings and provides some policy recommendations and further research avenues.

2 Theoretical framework and methodology

2.1 The theoretical framework

The theoretical framework for the study has three analytical blocks that build on each other. Firstly, the framework identifies all relevant waste actors and proposes their categorization into the formal and informal sectors. Subsequently, it analyses social relationships and bonding mechanisms between the identified actors. Finally, it focuses on social capital variables of trust, predictability, and transparency in the formal and informal waste sectors. All three elements of the framework are discussed below while the bonding mechanisms and social capital characteristics are summarized in Table 1 with their corresponding variables and indicators.

Table 1 Exchange variables and characteristics of social relations
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2.1.1 Categories of actors in the analysed waste economy

The study looks at both formal and informal actors working with waste. Here, the formal actors refer to the responsible public authorities and the contracted private waste collection company, while waste pickers and scrap dealers represent the informal actors.Footnote 1 The waste pickers make a living from sale of collected recyclable waste from waste generators and public areas, sometimes for a small user-or collection fee (Ferrontato & Torretta, 2019). The scrap dealers comprise a highly diverse set of actors, some of which have obtained enterprise licenses (Harriss-While, 2020), who purchase recyclables from waste pickers and directly from waste producers, including industries, small-scale enterprises, households, and offices. Some scrap dealers may be considered merchants, while others operate as small-scale family-based business. The scrap dealers involved in various types of trade and relations with distinct types of sellers and buyers of waste are referred to in the literature with multiple synonyms, including intermediaries, middlemen, and itinerant buyers (Gill, 2007; Nzeadibe, 2019; Hande, 2019). The paper also addresses the industries and enterprises that sell recyclables typically to scrap dealers or buy recyclables for their production processes.

2.1.2 Social relationships and bonding mechanisms

The paper identifies social relationship as “the manner in which actors interact with other actors” within bilateral relations, or as part of formal or informal networks (Nkhata et al., 2008). Social networks may imply informal organizational arrangements based on social ties, often described with reference to different bonding mechanisms or bridging and linking actors and individuals (Meagher, 2005; Woolcock, 2001). The approach described by Gill (2007) is adapted to analyse bonding mechanisms among actors in the waste value chain, referring to the following mechanisms (i) formal and informal agreements between actors, (ii) provision of transport/gifts resources, provision of assistance and social security, and (iii) provision (access) to information and skills. An informal agreement between actors can refer to a situation where a buyer provides advance payment for materials to the seller or advance access to transportation, representing “implicit contracts” (Gill, 2007). The provision of transportation may imply access to a pushcart or a motorbike for transporting recyclables, while assistance and social security may imply medical or economic assistance. Provision of information can be very broad and include sharing of updated prices, knowledge about sorting, or information about police controls.

2.1.3 Social capital variables in the formal and informal waste sectors

Social capital represents a quality that becomes visible in social networks and relationships in the existence of trust, connections, and cooperation over problems, or where lacking, as low levels of trust, difficulties in collaboration, and network connectivity (Putnam, 2000; Adger, 2009). In an urban setting, social capital can be referred to as the relationships and networks developed and drawn upon by the urban poor to survive and improve livelihoods (Adama, 2012; Meagher, 2005). Social relationships and networks can be regarded as sources of “social capital” capable of enhancing economic efficiency and growth independently of the state (Chen, 2012, 2021). While social capital is a broad concept with several theoretical branches (Adama, 2012; Woolcock, 2001), the paper emphasizes the properties, predictability, trust, and transparency and openness to market information that influence how individuals and groups can work together. Predictability in this context refers to regular access to quality recyclables. Trust is important in cooperation and needs to be established for networks to operate effectively (Beratan, 2007). Transparency and openness refer to the degree of freedom for the parties in a relationship, and whether the social networks constitute social liabilities for certain groups of people, as social networks can represent exclusion to information for other social groups (Porter et al., 2011).

2.2 Case study area

Myanmar, the largest country in mainland Southeast Asia, bordering the Bay of Bengal and the Andaman Sea, is rich and abundant in natural resources. Since its independence in 1948, Myanmar has been under direct or indirect military control, with most societal aspects being nationalized in the period between 1962 and 2011 (Stokke et al., 2018). Following a few years of democratic governance, the military coup removed the national league for democracy governmentFootnote 2 by force in February 2021, and imprisoned ministers and political leaders. Another effect of the coup having an impact on environmental governance ability, is the state administration council’s (established by the military government February 2021) amendment of municipal laws removing the role of municipal body with elected persons.Footnote 3 This ended the democratic governance on township level established in 2017 and destroyed good waste management practices developed in urban areas. The environmental performance index placed Myanmar as 167 of 180 analysed countries, with waste management as an important impact category (EPI, 2022). The development, implementation, and enforcement of recent environmental laws has been relatively weak (Nesheim & Platjouw, 2016), and it is estimated that in some townships, one to two-thirds of waste remains uncollected (Dickella Gamaralalage et al., 2017). Coupled with economic development, changing consumption patterns, and weak environmental governance, there are significant challenges with unmanaged waste. Recently, the COVID-19 pandemic and the coup have given rise to an economic depression causing many people to lose their jobs (World Bank, 2022).

The case study area addressed is the Bago Township in the Bago Region, located in the south central plain of Myanmar. The township includes 107 132 households (Myanmar census, 2015), about 23 000 small-and large-scale industries (JICA, 2014), 9 government offices, and 200 monasteries. There is a range of different international and national industries in Bago, and a wide range of small-scale enterprises (Authors’ observation; Nesheim et al., 2022). Responsibility for waste collection is specified for households in urban areas including more than 800 streets. The local company responsible for collecting waste in the city estimated in an interview December 2021 that around 140 tonnes of mostly household waste were collected per week (Private company, 2021). The waste is dumped at the formal “White elephant” landfill, located about 20 min away from the city centre, which is about to reach its storage capacity. The informal sector, the waste pickers, and the scrap dealers in Bago have for several decades played a significant role for collection and recycling of valuable waste in the city.

2.3 Data collection and analysis

The data were collected from 2019 to 2023 as part of a project aiming for sustainable waste management in the Bago Township. The project “Capacity building for waste management in the Bago Region” is described in further detail in Nesheim et al. (2022, 2023). Both qualitative and quantitative data were collected using triangulation of methods and sources to facilitate validation and verification of information. This included surveys and key informant interviews with public authorities in Bago Township, the private waste collection company, industry actors, scrap dealers, and waste pickers (Table 2). Data collection also included observation of actors present in the larger scrap shops in Bago Township. The authors contributed to fieldwork and data collection in Bago before the COVID-19 pandemic and the coup, both causing travel restrictions. After March 2020, data were primarily collected by the Burmese co-authors and analysed in physical and virtual meetings among all authors.

Table 2 Information about the interviews conducted for data collection
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Informed consent was obtained prior to all the interviews conducted, while all data have been anonymized, transcribed, and made available among the authors. The “Do No Harm” principle was followed, and the safety situation was considered during data collection (NESH, 2022). Data were collected through three stages. The purpose of the first data collection stage was to map and identify regulations and practices on local, regional, and national levels, as well as mandate of public authorities and their relationship with and the role of the private waste collection company. Interviews were conducted with the public cleaning section, with the Bago Township Development Committee  (TDC), and with the private waste collection company (Table 2).

At the second stage, surveys with scrap dealers, waste pickers, industries, and small-scale enterprises were conducted to map relationships, connections, practices, and challenges. The informants were identified partly by means of the snowball method, i.e. where some initial key informants suggest other informants (Wilkinson, 1998), and partly by directly approaching actors asking whether they agree to take part in an interview. Most of the people approached were willing to be interviewed. The author conducting the interviews revisited the communities and the scrap dealers in several rounds, and hence over time enabling an interview type reflecting an open conversation. Interviews with waste pickers involved informants mainly from the two waste picker communities in Bago, the Mya Thida village and in the Zaing North ward. In addition, a few interviews were conducted with waste pickers living outside of these communities. The surveys aimed to collect information from both small-scale and large-scale scrap dealers, and smaller and larger industries. In total, 92 people are informants to the study.

At the third stage, based on the results from the survey, 10 scrap dealers and 10 waste pickers were selected for additional key informant interviews, based on the criteria that they represented key actors in their networks. The purpose was to explore contextual aspects enabling their success from their own perspective. The interviews that took between one and two hours, started with a general discussion shaped by the interviewee followed by specific questions from the investigator. If needed, a second or third follow-up interview was conducted for clarifications (15 additional follow-up interviews in total) adding to 107 interviews in total. Follow-up interviews were conducted with the private waste management company in 2023 to update the information received in 2021.

Analysis was carried out on data results from the surveys and qualitative key informant interviews, the actors and their relationships and bonding mechanism mapped were classified into different categories (Table 1).

Content analysis was applied to simplify the presentation of the survey results, where informants’ answers were classified according to keywords or the interpreted meaning of their answers. The purpose of the analysis is to present the main trends in responses, rather than details or differences among the informants’ perspectives. The analysis of actors’ relationships was conducted using Visone-2-25 software package for visual exploration of social networks.

3 Results

3.1 Formal and informal waste sector actors in Bago

Both actors in the formal and informal sector collect, and trade waste and recyclables in Bago City. The mandate, acknowledgement, challenges, and the functionality of the actors differ.

3.1.1 The formal waste management actors

Three main actors have a formal mandate for waste management in Bago city. The Bago Township Development Committee  (TDC) including representatives from township departments has the overall responsibility for waste management in the urban areas (ECD/MONREC, 2018). Before 2019, the Bago municipal department including its cleaning section were the only institution responsible for waste collection from household in urban areas, and upon phone calls from industries, public offices, and hospitals. Collection from households at the time only occurred in some downtown city areas, while most of the urban wards did not receive public waste collection services. In 2019, the Bago TDC outsourced waste collection in urban areas to a private waste collection company, hereafter referred to as “the private company”. Our data suggest that municipal and private waste management services coexisted for a period until the military coup in 2021, when public services diminished (Interviews, 2020; 2021).

The private waste collection company informed that they collect waste twice a week from households in the urban area, three times a week from 33 large-scale industries and infrequently from additional 16 industries, in addition to providing regular collection from six monasteries and infrequently based on calls from other monasteries in the city (Private company, 2021; 2023). The private company is also responsible for operating the landfill located about 20 min from the city. The landfill area was developed by the company in 2017, and in 2019, a restricted public access to the landfill policy was introduced. The private company’s business model arrangement includes income from waste collection service fees from households and industries, fees for disposal of waste at the landfill, and selling recyclable waste dumped at the landfill. The company has established a scrap shop at the landfill where actors come to sell and buy recyclables, and the company produces compost from organic waste for sale.

3.1.2 The informal sector, the waste pickers

The waste pickers in the Bago City area mainly live in two different communities, in the Mya Thida village and in the Zaing North ward. The Mya Thida village was established around 2000 because of employment opportunities at the nearby rubber plantation. Then with the establishment of the landfill in 2017 near the village, more people started to settle as the landfill meant income opportunities. Currently, the village consists of around 50 households (Observation, 2023). The Zaing Ga Naing Ward in the Bago city centre by the railway station, includes some 100 informal dwellings. The two waste picker communities represent two different social networks, where each consists of smaller groups of people that collaborate in their work. In both communities the authors observed a few people that seemed to have lead positions. They were skilled in the recycling market and had connections to other formal sectors, such as the municipal department or the waste collection company. It was common to gather in the evening and share information and experiences. Each waste picker community also consists of smaller groups of people, often tied by family relations, who collaborate on practical tasks such as pushing heavy pushcarts or leasing three-wheel motorbikes. Information about particularly valuable waste is usually only shared within these smaller groups.

Waste pickers collect waste from the landfill, alongside the street, and some collect recyclables directly from households for free, or by paying a small amount. Some with access to three-wheel motorbikes also travel one to two hours to rural areas to collect recyclables. Some informants shared that they prefer to collect in familiar areas because in other areas they are shy, afraid to ask for waste, or misjudged as thieves. Some informants explained that they favoured waste picking compared to other alternative occupations, as it gives more freedom compared to wage work in, for example, agriculture and other industries (id-2 “no need to care about boss, get high income”, so she is “happy to do that job”). Very few waste pickers have a driver’s license and few own vehicles such as three-wheel motorbikes. To get access to vehicles, waste pickers typically lease them from scrap dealers. Several informants also shared that they face challenges of being harassed by the police and social stigma for their work. Such harassment can be severe; Id-11 was arrested by police, spent a month in jail, and police confiscated his three-wheel bike. Several waste pickers informants complained about their own health problems or health problems in their families living close to the landfill.

The waste pickers working at the landfill are Burmese, while in the city they are both Burmese and of Hindu origin. Before 2020, waste pickers were observed when working at the landfill and at dump sites, while in 2022 and 2023 waste pickers are observed operating with push carts or big carry bags in the city area, indicating an increase in the number of waste pickers (Observation, 2022, and 2023). The number of waste pickers at the landfill has varied over the years; previously, it has been estimated that around 100–150 collected recyclables at the landfill, while currently, around 30 waste pickers are employed by the private company to segregate waste at the landfill (Private company, May 2023). Since public access to the landfill became restricted, most waste pickers can only enter the landfill when avoiding the guards.

3.1.3 The informal sector, the scrap dealers

The scrap dealer informants comprise highly diversified actors. Most of the informants live in Bago and some live in Yangon, the commercial capital (Table 1). All the informants had middle school or higher education levels, such as high school or tertiary education. The majority had been in the business for a long time; one informant reported that his scrap dealer business had been operating for 40 years, while others had worked as scrap dealer only for a one or two years. Scrap dealers typically work full-time in their business. Those that recently started as scrap dealers explained that they had previously been farmers but struggled to earn for a livelihood. One informant explained that he started working as scrap dealer because it was good business and possibility to earn money, “better than working as a farmer”. A few of the scrap dealers had gone from being employed in another scrap dealer shop to opening their own. Several had other family members in the similar businesses. One rather successful scrap dealer informant also had two other brothers in the business, collaborating particularly on vehicles and transport of recyclables to buyers. This informant said that “I think that buying waste is a good job cleaning all the waste around, but people look down on this job because it is waste, and this is dirty”. Similar to the waste picker situation, the number of scrap dealers in Bago has increased the last decade (Observation, 2019–2023). The scrap dealers expressed that there is strong competition for recyclables and for skilled staff.

The informants to the study tell that approximately 5–10 scrap dealers in Bago are rather large businesses, 25–30 businesses are medium-sized, while the majority are small businesses. The large scrap dealers have enterprise license from the local authorities, more than 10 employees, storage facilities, trucks for transport (owned or rented when needed), and three-wheel motorbikes that they rent to certain waste pickers. Some also have waste processing equipment, but it varies whether this is perceived as relevant. Some informants say that buyers do not want pressed material, and they want to examine the quality of the recyclables. The medium-sized scrap dealers often have similar storage facilities, equipment, and licenses as the large-scale dealers, but less employees. The small-scale scrap dealers are mostly small family-run businesses that have limited storage facilities and means of transportation. Some possess three-wheel motorbikes while others rent. Small scrap shops tend to sell recyclables to larger scrap shops. Most scrap dealers in Bago city handle different types of recyclables, rather than being specialized within one material or material type. The scrap dealers buy recyclables from diverse sources, including directly from industries, neighbourhoods, households, and waste pickers, and resell recyclables in bulk to larger scrap dealers, processors, or industries.

3.1.4 Industries and enterprises, waste producers and buyers of recyclables

Small-scale enterprises such as restaurants and snack bars are responsible for handling their own waste. 33 large industries have signed a contract with the private company for waste collection services (private company, May 2023). Larger industries store their waste and transport it directly to the landfill, where they pay the company per truck load (interviews, 2022). The industries have “cleaning staff” who segregates the waste into recyclables and non-valuable waste. Valuable industrial waste is generally sold to scrap shops, production companies, or to the private company. Examples of waste directly sold by the industry include organic waste for fish feed and textile leftovers sold to pillow and mattress businesses.

Industries buying recyclables can be small local enterprises in Bago, larger industries in Yangon and Mandalay, or international enterprises from Thailand and China. Valuable plastics, including PET bottles, and metals are often traded to Yangon and Mandalay. Industries typically buy one type of material, requiring certain quality and quantity. According to our interviews, production companies purchase waste from up to 20–30 scrap dealers and traders, depending on the size of the industry to assure sufficient resource quantities. The market price of recyclables fluctuates significantly, depending on global demand and on the quality of the recyclables. Contaminated recyclables are cheaper as they imply added treatment costs for the production company.

3.2 Relationships among actors and social capital in Bago

The actors interviewed indicate that the waste value chain can be described as a dense network of relationships. Figure 1 illustrates the interactions in trade and work between the interviewed key informant scrap dealers and other waste actors in Bago. The study indicates a central position of scrap dealers, where each is involved in a range of relationships including both sellers and buyers of waste.

Fig. 1
figure 1

Relationships between selected scrap dealers and other actors buying and or selling waste

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3.2.1 Relationships between, and with actors of the formal sector

Relationships between actors in the formal sector primarily refer to the interactions between the Bago Region minister, the Bago TDC, the Bago municipal department, and the private waste collection company. The planning process for outsourcing the waste collection service was initiated in 2017, and a contract between the Bago TDC and the private company was signed in 2019. The contract describes: (i) responsibility for waste collection from households in urban areas, (ii) the right to collect waste from markets, industries and hospitals, (iii) the right to collect fees for this service from households and other actors, and (iv) responsibility for operating the landfill. The contract stipulates that the company must pay 150 lakhs Myanmar Kyats every third month (50 lakh per month) to the municipal department (Private company, December 2021). During the period that the contract was negotiated, regular meetings were held between the company and the Bago TDC to discuss its content. There were, however, few meetings with the municipal department’s cleaning section for coordination purposes (Private company, 2021). The meetings between the company and the Bago TDC have been important for predictability and openness of the process, but it was insufficient for coordination of the public and the private services (Private company, 2021).

The waste collection company’s bilateral relationships with households and industries are limited, with few bonding mechanisms established. The company charges households a waste collection fee and informs households about the time of collection on Facebook and through the Waste Tax collector app. The price is set by the TDC and it depends on the size of the household. Collection of fees can be difficult, particularly in poorer areas (Private company, 2021; 2023). According to the informants, awareness or information campaigns have not been organized. Collection from industries and small-scale enterprises is based on bilateral contracts. Some industries do not have permanent contracts but call the private company and pay for each waste collection (Private company, 2021 and 2023). Some public offices also sell recyclables to scrap dealers, but this is less common (Scrap dealers, 2023).

The relationship between the waste collection company and waste pickers can be described as complex and to some extent characterized by conflicts. The difficult relationship is primarily due to closing of the landfill for general entrance. In December 2023, around 40 people from the waste picker communities are employed by the private company for collection of recyclable waste from the landfill, such as metals and PET bottles. The company’s arrangement with waste pickers at the landfill has varied; previously, for a period around 150 waste pickers were allowed entrance to the landfill against an entrance fee. The employed waste pickers must sell the recyclables that they collect to the company.

3.2.2 Relations between scrap dealers and industries selling or buying recyclables

Typically, trade relations between scrap dealers and industry actors are initiated by scrap dealers contacting industries on the phone with an offer to buy recyclable waste. These relationships do not appear to be mediated by kin or family. Scrap dealers often favour nearby industries due to low transportation costs, while an industry may receive offers from several scrap dealers that can come from various areas, selecting the scrap dealer that provides the best price. The trade is regulated by formal or informal agreements specifying the volume and the type of recyclables. Apart from this, no other bonding mechanisms were identified. One industry informant mentioned that he “values long term relationship even if others give a higher price”. Such trade relationships, however, appear to be a privilege primarily for large-scale and medium-scale scrap dealers who possess licences and transportation vehicles. The ability to establish long-term relationships with industry actors increasingly requires skilled and experienced scrap dealers with knowledge of the market and digital technologies. Recently, digital technologies have begun to enable professional intermediary scrap dealers or traders from Yangon or Mandalay to directly approach industries and offer purchasing of recyclables. Also access to market information is available through social media, where information is exchanged in specific groups or bilaterally. The administrators of Facebook groups where each often includes several thousand members is typically a merchant in Yangon and Mandalay selling and buying recyclables. Several Facebook groups were established about one year ago (authors observation, April 2023). In theory, all can request membership to these groups from the administrator, but access is restricted to those with smart phones. It was explained that it is common to check prices on Facebook groups and have follow-up negotiations by phone. An informant explained “nowadays, communication refers to information on social media (…) even if he hasn’t seen in person the boss in Yangon, he could do business with him”.

3.2.3 Relations between scrap dealers and with waste pickers

The scrap dealers in Bago mostly buy recyclables from waste pickers they trust. Depending on the size, a scrap dealer could buy from as many as 40-50 waste pickers. Large scrap dealers also buy from small scrap dealers. Similarly, the waste pickers sell most of the waste they collect and segregate to one main scrap dealer, but they also sell to other scrap dealers depending on the convenience of that particular day. Due to limited storage, waste pickers typically sell sorted waste every afternoon. Some scrap dealers also go to the areas where waste pickers live and try to buy recyclables on site.

Trade between scrap dealers and waste pickers and between large and small scrap dealers typically involves several bonding mechanisms that serve to regulate the trade by mutual dependency. Common mechanisms include advance payment and lending three-wheel motor bikes to waste pickers, while some scrap dealers also give gifts during festivals and provide financial and other types of support in case of emergency. Emergencies could be arrests or punishment by the police for not having a driver’s license or funds to pay the doctor in case of health problems. The waste picker informants shared that they appreciate scrap dealers who provide information and skills, id-7 stated that “the initial scrap dealer teaches them to identify different types of waste to collect”. It is particularly important to gain information about the market price and fluctuating demands for recyclables. Scrap dealers have smart phones to check market information, while only few waste pickers have (smart) phones. Information on price updates from trial selling is often shared in the waste picker community by word of mouth, as id-38 stated, “someone try to test selling and get voucher for the actual price, share price information with each other”. Such skills help waste pickers to earn more and scrap dealers to assure good quality recyclables.

The medium-sized and large-scale scrap dealer shops also represent arenas of information sharing when people come to sell or inquire about prices. As many as 30–50 waste pickers come to scrap shops in the afternoon (id-23). Owners of smaller and large scrap dealers can often meet at tea shops to negotiate price (Table 3).

Table 3 Relationships among actors
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4 Discussion

4.1 Social relationships and bonding mechanisms among actors

Different types of bonding mechanisms between actors involved in waste management in Bago seem to regulate the role and the mandate of formal actors (the waste collection company and township authorities), as well as the relationships and trade between and among formal and informal actors (scrap dealers and the waste pickers).

Between the Bago TDC and the collection company, the written contract specifies the terms for waste collection, while between some larger-scale scrap dealers and industries or enterprises, there are agreements that typically describe trade expectations as the estimated amount, or the weight of valuable waste/recyclables. The study indicates that for the waste collection company the contract imply predictable terms, while agreements for the industry mean predictable waste collection and also income; for the scrap dealers, the agreements imply predicable access to recyclable waste. Predictability of trade relations is higher for actors that have formal agreements and for actors in long-term relationships. Hence, for new actors, the situation is more unpredictable and not all are able to survive in the business. Different types of more or less formal and informal agreements are also documented by other authors (Nawaz et al., 2021).

The study did not identify any specific mechanisms for building trust between the formal actors, between formal actors and households, or between scrap dealers and industry actors. In line with other studies Uddin et al. (2020), however, trust in a relationship is highly valued by actors. The informants in Bago explained that trust primarily developed because of mutual positive experiences. While the scrap dealers highly value predictability, the waste pickers value trust in fair prices (honest weighing of supplied recyclables) and support in case of emergency. For many waste pickers that do not have means of transportation or lack funds for medical services or other needs, trusted scrap dealers providing such resources imply livelihood means and a safety net in case of emergencies. Scrap dealers also represent a source of market information contributing to transparency and openness for waste pickers, who often lack access to smart phones and internet. Waste pickers who receive advance payment and access to vehicles could be considered semi-employed by scrap dealers, connected by the mutual need for predictably, provision of funds, and support (trust and information, transparency, openness).

Several factors are important for accessing market information, including formal and informal rules contributing to transparency and openness of the system and information shared bilaterally in phone calls or during informal meetings between already connected actors. Social media platforms, such as Facebook and WhatsApp groups, also seem to enable transparency and access to information across actors (Nesheim et al., 2023).

According to our informants, informal, implicit agreements and other bonding mechanisms between scrap dealers and waste pickers are common. As there is competition for recyclables, scrap dealers use bonding mechanisms as a strategy to gain a competitive advantage compared to other scrap dealers, to have predictable delivery of high-quality recyclables from waste pickers. Our findings from Bago parallel to some extent with those of Gill (2007) from Delhi, India where scrap dealers offer loans akin to a bank and individual protection in instances of police harassment, referred to by Gill as “social contracts” among waste pickers and “panni dealers”. Where some authors have described instances of exploitative relationships between scrap dealers and waste pickers (see, for example, Adger, 2003; WIEGO, 2018), interviewed waste picker informants from Bago did not describe negative relationships with scrap dealers. The situation in Bago may be explained by many competing scrap dealers and the high demand for recyclables. The choice to sell to a specific scrap dealer primarily appears to be the decision of the waste picker. Waste picker informants explained that scrap dealers that offer unfair prices contribute to distrust and a decrease in access to recyclables. The study could indicate that the bonding mechanisms between scrap dealers and waste pickers established to regulate trade increase effectiveness and generate social capital.

4.2 A system perspective on the functionality of formal and informal actors

The study from Bago in line with several other studies, e.g. Tong et al. (2021) and Henam and Bandela (2020), reveals the coexistence of, and the interaction of actors from both formal and informal waste sectors. Regarding the formal sector actors, the private company sells recyclables such as PET bottles and metals from the landfill to larger scrap dealers, and the company employs waste pickers to work on the landfill. A few public agencies also sell recyclables to scrap dealers. Largely, however, the two systems represent different networks, and the formal and the informal actors imply different functionalities for cleaning of waste, circularity of materials, and sustainability objectives.

The formal waste sector has a mandate to collect household waste for a fee and to operate the landfill for the overall purpose of avoiding unhygienic and hazardous waste. However, and as described also in other studies (Dickella Gamaralalage et al., 2017; EPI, 2022), the collection and cleaning efforts are insufficient. In Myanmar, collection in rural areas is not mandated, and the study documents that industries, enterprises, public offices, monasteries, etc. are not obligated to pay for regular collection of (non-valuable) waste in Bago. Considering the objective of the circular economy paradigm, the formal sector is not mandated with an objective of recycling of materials. In establishing waste collection services, the needed investment in infrastructure and the man force required for collection and disposal of waste is on one hand immense, while on the other hand, waste collection rests on actors’ cooperation and their willingness to pay the requested fee. From this perspective, the economic model applied in Bago where the company must pay for the right to collect waste, existing also in other township in Myanmar (Møller, 2020), adds challenges for widespread collection, and severely restrict the company’s opportunity to organize awareness and information campaigns for improved functioning of the system. This would have been important for awareness raising, for information sharing, and thereby for trust in the system. Debrah et al. (2022) describe how absence of educational programmes and awareness rising hinder circular economy and sustainable waste management. In Bago, the public private partnership model has induced closure of the landfill for waste pickers, as the landfill represents income generation for the private company. Closing the landfill, however, has occurred at the expense of reduced income opportunities for the informal sector. This situation is reported also elsewhere, and waste picker organizations highlight that the closure of landfills represents a key challenge for waste pickers (Dias, 2017; O’Hare, 2019; UN-Habitat & NIVA, 2022).

The informal sector actors and their activities that target recyclable waste for trade and income generation contributes to closing the loop from a circular economy perspective, albeit implicitly, as separate waste streams are prepared for further reuse in productions. Considering the non-valuable waste, this is left or discarded as there are no incentives for collection (Yang et al., 2018). In Bago, the results of this study indicate that the mechanisms established by scrap dealers as bonding with waste pickers increase the functioning of the informal trade system by adding trust and predictability. In addition, the bonding mechanisms support people’s livelihood security. This is supported by authors such as Boogaard (2018) and O’Hare (2019) addressing informal economic activity, emphasizing systems that tend to be more flexible, efficient, and financially advantageous alternatives to formal employment. From a systemic perspective, both the formal and informal sector actors contribute with important but different functionalities: avoiding waste, including plastics and hazardous waste in the environment, and recycling and regenerating materials for production. Wide literature streams acknowledge the role of the informal sector in strengthening the circularity aspect by reducing dependence on new raw materials (Kala et al., 2022). Still, few examples of successful governance systems exist that in a holistic systematic way integrate scrap dealers and waste pickers with the formal system for reaching aims of circularity (Asim, 2012). Identification of a governance system that addresses both formal and the informal sector needs to consider the local context by involving local stakeholders and build on the existing networks and knowledge and skills (Aparcana, 2017; Joseph, 2006). Furthermore, holistic approaches need to acknowledge and address solutions for the huge investment in infrastructure for reaching environmental objectives of collection, recycling, and safe disposal and treatment of non-valuable waste. These investments are typically the burden of local authorities, who in many municipalities have little tradition and history of collection of taxes, while also identifying socio-economic targets of improving livelihoods of waste pickers and other informal waste workers. Such a holistic approach is in line with the SDG 17 calling for better partnerships in sustainable development, stressing the need for a “greater cooperation between public, private and third sector organisations, regardless of their origin and size, to implement sustainable development, particularly with developing countries” (Leal Filho, 2022).

5 Conclusions

The study builds on extensive research conducted in the Bago Township between 2019 and 2023, with 107 interviews and direct observation in the waste-related meeting events and in the field. It illustrates waste management in Bago by looking at the variety of actors, diverse interdependencies, and complex social and institutional dynamics. The case documented refers to a situation where the waste collecting company must pay the local authorities for the right to collect waste and operate the landfill. This arrangement challenges the company’s economic sustainability and limits options to do activities that promote awareness and enable trust between the actors. In the informal sector, relationships, mutual dependencies, prominent levels of social capital, and several bonding mechanisms that regulate and govern this formally unregulated sphere are observed. Central actors in the informal sector are medium and larger scrap dealers that do not only serve as waste trade intermediaries, but function as banks, social security agents, fora for information exchange for waste pickers. This requires high personal skills, access to digital technologies, good planning logistics, and investments in innovations (pressing, sorting of waste, etc.). Trust, predictability, transparency, and openness in the informal network develop as a combination of time and good mutual trade experiences. Scrap dealers that are known by waste pickers to have unfair prices build a bad reputation and the potential for higher short-term earnings will be compromised with less waste pickers willing to sell high-quality recyclables, and hence less earnings in the long term. In contrast, the study indicates that in the formal sector, few bonding mechanisms exist to build trust, transparency, and openness necessary for social capital.

This study contributes to the literature by bringing a holistic perspective on sustainable waste management, acknowledging the role and interlinkages between the formal and informal sector. Design of successful waste management governance needs to be based on the knowledge of roles and best practices of both sectors and the recognition of the informal sector’s contribution. Coordination of the two sectors that considers both environmental and socio-economic aspects is required, through a process of active involvement of representatives from both sectors. Formal sector policy development needs to consider the necessity to include mechanisms that build awareness, understanding, and trust between the waste generators and the waste collection company or public unit. Policy development and aid assistance need to acknowledge specific roles of the actors and build on the high levels of social capital that has been developed between the waste pickers and scrap dealers.

Furthermore, the study addresses a considerable empirical gap in waste management knowledge and data from Myanmar. The current context of dictatorship reinstalled after the military coup represents profound challenges for the development of predictability, trust, transparency, and openness between the formal and the formal sector, and between the formal actors and the waste generators. Despite this situation, the study may indicate that the informal sector represents resilience and a means for livelihood for many people. The paper shows the need for research that explores avenues for optimal coordination of formal and informal sectors that also address power relations, working conditions, and that do not compromise environmental and socio-economic objectives and functions.

The study has some limitations typical for qualitative research design, relying on respondents’ ability to recall and report on their activities, livelihoods, and behaviours. Interviews with both scrap dealers and waste pickers bring many insights, but it is possible that the informants could have reasons for not revealing some information. The results are consistent with the growing literature dedicated to the informal sector in waste management, but also bringing some new insights on the role of actors, their relationships, and social capital levels link to specific bonding mechanisms. It would be important to further investigate the formal and informal waste sectors, their relationships, and promising policy interventions.