RESOLUTION EC-311

FORUM: ECONOMIC COMMITTEE

QUESTION OF: The question of diversifying supply chains

SUBMITTED BY: DR Congo

CO-SUBMITTERS:Cameroon, Central African Republic, Cyprus, Gabon, Holy See, Iran, Israel, Lebanon, Mongolia, Oman, Qatar, Singapore, Somalia, Sweden, Switzerland, Tajikistan, Turkey, Ukraine, United States of America, World Bank, Venezuela.

STATUSApproved

THE ECONOMIC COMMITTEE,

Alarmed by the impact of trade wars causing unilateral state actions to harm the global economy or the well-being of any nation’s citizens, 

Bearing in mind the need for establishment of a well-functioning and sustainable economy and enhancement of the resilience mechanisms of the small and medium economies (SMEs),

Emphasizing the greatly positive influence of the supply chain diversification for firms headquartered in less economically developed countries (LEDCs),

Acknowledging that dependence on specific countries regarding supply chains causes vulnerability to supply disruptions such as those caused by natural phenomena or other factors,

Bearing in mind that diversifying supply chains boosts manufacturing, economy, and speeds up globalization, improving global relationships and provides resilience to rapidly changing situations like during potential trade wars,

Confident in the efforts of the World Economic Forum (WEF) in seeking to cooperate with businesses and nations to improve on global issues and improving economy,

Further acknowledging the efforts of World Trade Organization (WTO) to diversify supply global chains, especially among the LEDCs, through lowering dependency on world top exporters,

Endorsing the domestic diversification of supply chains so that more SMEs have the chance to flourish financially and gain a place in the market, and at the same time reducing the influence of private monopolies through methods like,

  1. Requests all member states to dedicate the following years to establish more diversified and resilient supply chains, including: 
    1. Other countries within their supply chains, aiming to protect one part of the chain being affected by an economic recession in another part, as they all have differences such as but not limited to:
      1. Geography and topography
      2. Culture
      3. Market
      4. Styles of economies
    2. Countries within their supply chain with different economic developments, such as more economically developed countries (MEDCs) and LEDCs, since different countries will struggle or flourish under different conditions;
  2. Endorses the creation of an international network under UN control that gives small suppliers the opportunity to connect with buyers all across the globe, this network will give companies the ability to locate suppliers easily in the instance where their current producers are not currently available, by means such as but not limited to: 
    1. Establishing the International Network for Market and Trade (INMT) whose main focus will be on the trade of goods
    2. Establishing comprehensive ways in which INMT will receive its funding from the UN in support for the LEDCs across the globe;
  3. Suggests the creation of the International Market of Raw Materials (IMRM) which will focus on the trade of raw materials, thus subsequently:
    1. Creating of the International Committee of Raw Materials (ICOR) who’s objective will be the diversification of the raw material and consistent regulation of the prices as well as the insurance of the homogeneity of all products offered
    2. Allowing any countries who have the potential to join the ICOR but not the technological capacities to do so, to have the ability to receive a low interest loan from the World Bank if the country in question vows to use it to create infrastructure to exploit said raw material;
  4. Urges the UN Development Programme (UNDP) to create a pilot program for LEDCs which would issue said countries matching grants to provide them with the needed assistance in building infrastructure, which would: 
    1. Help solve the main infrastructure issues LEDCs face when it comes to international and national trade, fixing aspects such as airports and naval ports
    2. Provide technical expertise in areas such as but not limited to:
      1. Engineering
      2. Planning
      3. Resource management;
  5. Encourages the World Trade Organisation (WTO) to create a diversification system called the Supply Chain Diversification System (SCDS) for all willing countries to work together and help residing companies along with foreign companies that may be in need, which would:
    1. Provide a list of companies and importing countries who can supply alternative resources, not directly coming from MEDC’s, but not requiring they import from them
    2. Encourage LEDCs to seek more trade partners among neighboring nations and members of existing participating economic communities aside from large global exporters to reduce dependence on few certain nations promoting trade networking and the broadening of the supply chains, by highlighting the imminent dangers of a limited supply network and of an unstable production line in which the negotiations can reach the goal of keeping political independence, a negotiation which should happen only under the supervision of a neutral international mediator
    3. Direct aid specifically to non-aligned states that are not part of trading blocs and would also increase South-South cooperation to overall decrease LEDC dependency on economic monopolies;
  6. Recommends the WTO to organize a symposium for affiliated nations of the UN to discuss potential trade agreements which would aim to:
    1. Provide a neutral space for countries to collaborate with each other
    2. Provide LEDCs the opportunity to decrease their dependence on MEDCs;
  7. Further recommends LEDCs to seek more trade partners among neighboring nations and members of existing participating economic communities aside from large global exporters;
  8. Further encourages the International Labour Organization (ILO) to help government attempts to develop rule of law and facilitate transitions from informal to formal economies, promote the execution and implementation of laws; 
  9. Calls for the development of risk mitigation policies in agricultural supply chains by means such establishing operational management grievance processes as preemptive programs to provide local, simple, and mutually advantageous means to address problems between all stakeholders that would:
    1. Serve as warning that there are significant issues and indicate future improvements to ensure grievances do not persist
    2. Collect perspectives from stakeholders demonstrating prospect for changes of business or management;
  10. Strongly recommends that adequate training and education be given to prospective workers at all levels to satisfy demands, in collaboration with governmental authorities and employers’ and workers’ rights organizations, which would provide adequate guidance and mentoring to youth to increase qualifications and access to employment opportunities, as well as ensure access to training for women.