Topic: 2024-Supply Chain Stability
Country: Australia
Delegate Name: Brayden Savoie
Conference: GLIMUN
Committee: SPECPOL
Country: Australia
School: Fishers High School
Author: Brayden Savoie
Topic 2: Supply Chain Stability
In the twenty-first century, supply chain stability has emerged as a pressing global concern. The disruptions caused by the COVID-19 pandemic demonstrated the vulnerability of international supply chains, with severe shortages in essential goods like grain, semiconductors, and critical manufacturing chemicals. In total, the pandemic cost the world 5% of its global GDP. Compounding these challenges are geopolitical conflicts, such as the war in Ukraine and tensions in the South China Sea, which strain trade routes and disrupt resource availability. Natural disasters, including hurricanes and earthquakes, further destabilize transportation networks and damage critical infrastructure. Meanwhile, inefficiencies like port congestion amplify these issues, making the consistent delivery of goods more unsteady. The Suez Canal block halted 400 ships and caused $10 billion in losses each day it was blocked. Although the United Nations has taken initial steps to address supply chain sustainability and resilience, a more comprehensive approach is necessary to target all aspects of disruption.
As a nation deeply embedded in global trade networks, Australia recognizes the importance of stable supply chains for economic prosperity and societal well-being. With an export economy reliant on the transport of natural resources, agricultural products, and advanced manufacturing goods. Australia’s total exports in 2022 amounted to approximately $424 billion. Australia is aware of the vulnerabilities that disrupt supply chains. The country has actively worked to strengthen domestic and regional infrastructure, diversify trading partners, and implement policies aimed at reducing reliance on single suppliers. Australia is currently investing a significant amount in infrastructure, with a major public infrastructure spend valued at approximately $230 billion over the next five years. Australia also acknowledges the role of climate change in exacerbating natural disasters and supports integrating climate-resilient measures into supply chain planning. On the international stage, Australia advocates for increased cooperation between governments, businesses, and organizations like the United Nations to address inefficiencies, promote transparency, and establish contingency frameworks to mitigate the impact of crises on supply chains.
To enhance global supply chain stability, Australia encourages a multi-faceted approach. First, fostering international cooperation to create standardized frameworks for supply chain management and data sharing will enhance transparency and efficiency. This includes leveraging the United Nations Global Compact to educate businesses on sustainable practices and risk mitigation strategies. Second, building regional supply chain hubs can reduce dependency on single trade routes and centralize essential stockpiles, improving resilience to disruptions. Australia is prepared to lead efforts in the Asia-Pacific region to develop such hubs. Finally, investing in climate-resilient infrastructure and green technologies can protect supply chains from natural disasters and align with global sustainability goals. Climate change is predicted to hurt global infrastructure by 1.7 trillion by 2050. By addressing inefficiencies, encouraging collaboration, and prioritizing resilience, the international community can better safeguard supply chains and ensure the continued availability of critical goods for all.
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.dfat.gov.au/
https://www.un.org/en/
