Topic: 2024-Supply Chain Stability
Country: Malta
Delegate Name: Levi Klein
Council: Special Political Committee.
Topic Area: Supply Chain Stability
Country: Malta
Delegate: Levi Klein, Fishers High School
The Repubblika ta’ Malta believes that having a strong stability in supply chains is necessary. The pandemic has had a significant impact on supply chains around the world. We all have been recovering, but stability just isn’t the same as pre-pandemic times. The KPMG index noticed a severe drop in stability in 2022, and it hasn’t reached nearly the levels it was pre-2022. Places like Norway, Japan, and Switzerland have exceptionally stable supply chains. In places of political tension, not so much. Ukraine is prime example of this. The ongoing conflict with Russia has severely weakened supply chain stability in Ukraine, virtually ceasing outside trade with other countries. Countries like Australia, India, and Japan have launched the “Supply Chain Resilience Initiative,” aiming to diversify and leverage trade and risks in supply chains.
Malta, a country situated in the middle of the Mediterranean Sea, is a key trade hub for Europe. Our strategic position allows streamlined communication with Mediterranean trade partners. The Malta Freeport is one of the busiest ports in Europe, and is a key gateway for Europe to trade with the Middle East, Africa, and Asia. As a result, stability amongst our supply chain is imperative. Our facilities have been noted as ‘outstanding,’ and our personnel, as ‘highly skilled & educated.’ We have two different terminals, focusing on efficiency within trade and supply chains (both Reg’l & Int’l), and ever since 1988, we have been a customs-free zone, allowing for even greater streamlining. We plan to expand this port, increasing stability by shortening queue times and increasing total volume capacity. In countries, like Somalia, supply chain stability is challenged due to poor road infrastructure and limited transport options, and their poor logistics lead to difficult market access for the country. The largest reasons, at the time, for unstable supply chains, are labor shortages and transport issues, fueled by a need for specialized workers.
The Maltese republic advocates for a policy to enforce educated workers, minimize violent attacks/raids on active transport, and to keep infrastructure and vehicles up to functional standard, even if doing so requires external assistance or funding. We believe that keeping stable supply chains helps drive the economy, and even increase relations with other countries. If incompetent workers, and crumbling infrastructure plague a country, then the smooth, efficient movement of goods, is almost impossible.
Citations
“Supply Chain Stability Index.” KPMG, KPMG, kpmg.com/us/en/articles/2023/supply-chain-stability-index.html?scrlybrkr=a28fadd7. Accessed 18 Nov. 2024.
“Manufacturing Service and Malta Freeport.” Manufacturing Services and Malta Freeport, KPMG, assets.kpmg.com/content/dam/kpmg/mt/pdf/2016/09/mt-manufacturing-services-and-freeport.pdf. Accessed 18 Nov. 2024.
“Somalia – WFP Fortnight Joint Markets and Supply Chain Update: 18 – 31 October 2024 – Somalia.” ReliefWeb, WFP, 12 Nov. 2024, reliefweb.int/report/somalia/somalia-wfp-fortnight-joint-markets-and-supply-chain-update-18-31-october-2024. Accessed 18 Nov. 2024
“Malta Freeport.” Wikipedia, Wikimedia Foundation, 22 July 2024, en.wikipedia.org/wiki/Malta_Freeport. Accessed 18 Nov. 2024
