Topic: 2024-Supply Chain Stability
Country: Kenya
Delegate Name: Perla Perez-Montiel
Conference: GLIMUN
Committee: SPECPOL
Country: Kenya
School: Fishers High School
Author: Perla Perez-Montiel
Topic 2: Supply Chain Stability
The stability of global supply chains has become increasingly critical in the twenty-first century. Key supply chains for goods like food, semiconductors and chemicals are threatened by global challenges. The COVID-19 pandemic disrupted trade, costing the world economy $4 trillion or 5% of global GDP, as factory shutdowns and transport restrictions worsened labor shortages and reduced stockpiles. Political tensions like the Russia-Ukraine war have further strained supply chains, especially for wheat as Ukraine produces 10% of global supply and its export capacity has been severely impacted. Disputes in the South China Sea, where China controls 40% of global shipping routes, also threaten key trade flows. Natural disasters such as the 2021 Suez Canal obstruction delayed 400 ships and caused $9-10 billion in losses daily. These disruptions raise costs, delay production and negatively impact both developed and developing economies, especially in regions more vulnerable to these challenges.
Kenya, as a developing nation with a growing economy, faces significant challenges from supply chain instability. The country depends heavily on global trade, with agricultural exports like tea, coffee, and horticultural products making up 40% of its $21 billion in trade. During the COVID-19 pandemic, Kenya experienced major disruptions in its agricultural supply chains. Transport restrictions and labor shortages delayed food production and distribution. The World Bank reported that these disruptions resulted in losses for key exports like cut flowers and fresh produce. As a member of the African Union, Kenya advocates for regional solutions to address systemic inefficiencies in African supply chains. The African Development Bank estimates that poor infrastructure in Africa costs the continent $25 billion annually, undermining economic growth and trade. Kenya supports initiatives to build resilience, especially in the face of natural disasters. It also calls for increased cooperation between governments, businesses, and international organizations like the United Nations. Kenya emphasizes the need for investment in infrastructure and technology to modernize supply chains. Improving Africa’s infrastructure could increase trade by 25% and reduce logistics costs by up to 30%.
To enhance the stability of global supply chains, Kenya advocates for a comprehensive approach that strengthens infrastructure and management practices. First, governments and international organizations should work with businesses to adopt sustainable supply chain practices. The United Nations Global Compact has encouraged 15,000 companies to implement transparency and sustainability measures. Technologies like AI-powered forecasting, used by companies such as Walmart and Amazon, improve flexibility and reduce waste. Second, governments should incentivize investments in infrastructure such as ports and roads, especially in developing regions. The African Development Bank estimates that Africa’s infrastructure deficit costs the continent $130 billion annually. In response to disruptions like the COVID-19 pandemic, supply chains should diversify sourcing and production hubs. Companies like Apple have already shifted production from China to reduce risks. Finally, promoting regional cooperation within the African Union through initiatives like the AfCFTA can increase intra-Africa trade by 52%, improving self-sufficiency and reducing reliance on global supply chains. By strengthening infrastructure, adopting new technologies, and fostering cooperation, the committee can significantly improve global supply chain stability.
Sources:
https://www.ascm.org/making-an-impact/research/supply-chain-stability-index/
https://unglobalcompact.org/what-is-gc/our-work/supply-chain
https://www.dhl.com/discover/en-ke/small-business-advice/business-innovation-trends/building-resilient-supply-chains-in-kenya
https://direct.mit.edu/rest/article/105/6/1335/109915/Electoral-Violence-and-Supply-Chain-Disruptions-in
