Topic: 2024-Supply Chain Stability
Country: Italy
Delegate Name: Benjamin Fischer
Global Supply Chain Stability
Introduction
The Italian Republic believes in a strong economy and with that, comes a strong supply chain. While the current supply chain is relatively stable, we have a responsibility to make sure it stays that way, even through rough times such as war. Therefore, measures should be taken to help reduce the possibility of supply chain instability. It is not an overstatement to say that the world depends on it.
Italy’s Perspective
Here in Italy, we have very high diversity when it comes to exports. The
Italian Republic’s major exports include machinery and equipment (18%), Transport (11%), Metals (11%), Textiles, clothing and leather products make up 11%, consumable goods (8%), chemicals (7%), and pharmaceuticals. This large diversity of exports strengthens the supply chain as well as the economic strength of Italy, making it so that if one product drops in value or has new challenges presented when manufacturing, Italy can still function, limiting the potential of a catastrophic failure in the supply chain. The variety of goods produced also helps to decrease Italy’s dependence on foreign exports, and when exports are necessary, we like to go as close to home as possible. This further strengthens the supply chain, making a collapse in Italy almost impossible.
Proposed Solutions
We, the Italian Republic have an idea of how to further strengthen the global economy. It will also have the added benefit of decreasing the levels of greenhouse gas emissions.
Taxes on major exports
We, the Italian republic, have come up with a plan in order to implement these policies globally. First, countries could place taxes on exports that reflect the amount of that product being exported relative to the total exports of that country. Products that are exported more often will see a slight decrease in profit margin, which will incentivize new up and coming companies to shift their focus on exports that are less prevalent in their country, possibly even receiving tax breaks relative to how their exports relate to other exports in the region. This would incentivize economic diversification and greatly strengthen worldwide supply chain stability. With this set up, worldwide shipping costs are also expected to decrease by 5%-10% in just 5 years after implementation, as products will be geographically distributed more evenly across the globe, allowing easier access to the products that are needed by companies around the world.
Conclusion
Overall, the diversification of exports may be a bit tough at first, but in the end, it will strengthen global supply chains and help the world collectively work towards a better tomorrow.
