Topic: 2024-Supply Chain Stability
Country: China
Delegate Name: Alexandra Pryplesh
In recent decades, as the global economy has grown to unprecedented heights, driven by free trade and an increasingly globalized world, supply chains have come under threat. In instances like the war in Ukraine, oil and wheat from the region became suddenly unavailable and the entire world felt the shockwaves. With climate change’s impact only becoming more pernicious as years go on, and the impossibility of another global crisis on the scale of the pandemic never assured, it is likely that our economy will experience ever greater supply chain struggles. As a market becomes unable to count on a supplier, leading to delays and shortages to consumers, faith in our economy is eroded and issues multiply. The root causes of these supply chain disruptions, such as conflict and climate change, are serious topics for the UN to concern itself with, but as they are dealt with, their immediate negative effects on our global economy must be mitigated. So far, the UN has tackled this issue through education raising initiatives, and left it largely as an issue for private companies. However, this is a global supply chain issue, and as such must be addressed through a global lens as only the UN is capable.
Through enterprises such as China International Supply Chain Expo (CISCE), China has put supply chain stability front and center of its economic vision, and has projected its goals across the world through its Belt and Road Initiative (BRI). As the BRI seeks to interconnect the globe through development of trade routes across continents, its work improves efficiency in every corner of the market, speeding the trade slowed by supply chain inefficiencies and fueling the infrastructure that is the foundation of these supply chains. The World Bank projects a 12% reduction in trade travel times and up to a 9.7% increase in trade, lifting millions from poverty, all as a result of China’s investment. Just as China has approached the BRI with zeal and ambition, the international community must approach supply chain stability efforts.
The UN must encourage, through a standard framework, the efforts of companies to improve the stability of their supply chain. The usefulness of such efforts is made ever greater by a potential global response and demand for improved efficiency across countries and continents. Specific suggested actions for these companies can be recommended, such as diversifying suppliers and increasing the prevalence of transparency and risk reducing business practices. As the world progresses, advances in technology also have the potential to improve efficiency and predictability, allowing companies to broaden their management capabilities. Countries across the world must also invest greatly in their own infrastructure projects to diversify avenues for trade, as China has consistently promoted as an essential next step for global development. For developing countries, this kind of investment can yield exponential growth, but is near impossible without aid, which this committee can provide through collaboration and negotiation. By taking full account of the state of supply chains, not allowing them to be obscured by their complexity, problems can be dealt with earlier and mitigated more effectively.
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