Topic: 2024-Supply Chain Stability
Country: Ecuador
Delegate Name: Talia McCollum
Supply chain stability is the capability of a supply chain to operate fluently, proficiently, and anticipated under standard conditions in addition to unplanned upsets. In recent years, Ecuador has been making progress in modifying its economic base. The government has attempted to promote agriculture and tourism, and it has boosted the economy for the better. The distribution of bananas, palm oil, cacao, roses, and shrimp has made Ecuador one of the leading exporters of these categories in the world. Before, Ecuador could only rely on its petroleum oil and natural resources for their exports and GDP, yet, the constant changes in oil prices have made Ecuador very vulnerable to external factors.
However, Ecuador’s economy is planned to slow down, which would severely affect its GDP (around 62%). This projection of the economy slowing is due to increasing gang violence and drug smuggling. What initially sparked this was the escape of the country’s main criminal group in January 2024. This particular prison escape has triggered a chain of terrorist attacks on the government. These attacks have forced the Noboa government to approve a VAT ( a consumption tax assessed on the value added in each production stage of a good or service) increase to fund law enforcement to fight against crime in Ecuador.
Ecuador’s economy still faces challenges every day. These struggles contribute to its combination of structural fragility, external factors, and political uncertainty. Accumulating a large debt from organizations, like China, limits the government’s ability to put money towards in-need sectors like healthcare and education. Ecuador’s inability to implement a long-term policy has conjured corruption, and efficient governance throughout the whole country. Although being an oil country, Ecuador still struggles with expressive social inequality. Many rural communities don’t have access to basic everyday necessities which limits economic growth and productivity.
Ecuador is in a semi-active/sensitive region. This makes Ecuador susceptible to droughts, floods, and earthquakes. Any of these events, which almost occur often, will rupture Ecuador’s agriculture and infrastructure, therefore straining the economy from potential growth and productivity.
Ecuador proposes a multilateral strategy to stabilize global supply chains. Using a multilateral system could help emphasize sustainability, fairness, and perseverance from any external factors. Such as the United Nations and the World Bank, could overall boost developing countries like Ecuador, in general. As Ecuador is still a developing country, diversifying export markets could open up alliances and reduce the dependence on a few trading partners.
Ecuador is home to exquisite destinations that are renowned around the world such as the Amazon Rainforest, The Andes Mountains, and the Galapagos Islands. Tourism contributes to a high extent to Ecuador’s economic development besides agriculture. Ecuador’s culture is natural and rich making it a primary destination for tourism, and by investing in this eco-friendly tourism infrastructure, the beautiful country can share its story with travelers. In conclusion, Ecuador is capable of so many things to help its economy by encouraging regional trade partnerships, investing in tourism, and using its natural resources efficiently. Ecuador can unlock its full potential to everyone by improving the quality of life for its citizens and tourists.
