Topic: 2024-Supply Chain Stability
Country: Peru
Delegate Name: Joseph Cox
Country: Republic of Peru
Committee: SPECPOL
Topic: Supply Chain Management
Delegate: Joey Cox
School: Williamston High School
The global supply chain is in major jeopardy due to a number of factors, most notably the prolonged effects of COVID-19, climate change, and geopolitical conflicts. Following the disruption of global supply chains after the COVID-19 pandemic supply chains never got the full chance they needed to recover from the issues that were introduced. As climate change gets worse droughts will become more frequent and agricultural production will drop. Droughts have caused large restrictions on the Panama canal and may render it unusable in the near future. Droughts and climate change will also affect other waterways essential to global trade. If agricultural production declines so will food based supply chains will plummet and people will not get access to the food they need to survive. Global conflicts such as the Israel-Palestine conflict have caused disruptions in the Suez Canal. The Suez Canal is vital to global supply chains and its blocking will have drastic effects on the health and viability of trade routes. Disruptions in global supply chains will disproportionately harm low income developing countries compared to high income countries.
Peru has felt the effects of supply chain disruptions firsthand. During COVID-19 Peru’s exports saw significant delays particularly in mining and agriculture. With these two industries encapsulating much of Peru’s income, Peru is still dealing with the after effects of the supply chain disruptions. As a developing nation Peru is greatly harmed by declines in global supply chains. Recent droughts in South America due to climate change have harmed the agricultural industry in Peru and surrounding nations further lowering the efficiency of global supply chains. Congestion in the Panama canal due to these droughts has also harmed Peru and global trade as a whole. Peru has pledged to be carbon neutral by 2050 in order to reduce these effects although Peru’s plan for the reduction of carbon emissions is not yet sufficient. Recently Peru has made an agreement with Japan in order to strengthen the copper supply chain. Peru is a major producer of copper and Japan is in need of more and more copper as time goes on. The goal of this agreement is to make the copper supply chain more efficient and resistant to stressors. Peru is no stranger to supply chain issues and recognizes their importance.
Peru’s plan to solve the issues regarding the global supply chain issues is to call for support for developing nations in order to modernize their supply chains and to push for peace in areas around the Suez canal. Many solutions to supply chain issues involve modernizing the infrastructure and technology related to supply chains. These would however leave developing countries behind so Peru’s plan to fix this is to give the needed resources to developing nations in order to modernize their systems. In addition the situation in Israel and Palestine has decreased efficiency in the Suez Canal and jeopardized trade in the red sea. Peru calls for an immediate peaceful resolution to the conflict that will heavily increase the efficiency of trade through the Suez Canal.
