The search for supply chain resilience

19 Pages Posted: 18 Nov 2021

See all articles by Darren J. Lim

Darren J. Lim

School of Politics and International Relations, ANU

Jack Thrower

affiliation not provided to SSRN

Date Written: September 28, 2021

Abstract

Supply chain resilience is an emerging focus of public policy. This article unpacks the concept’s meaning against the backdrop of the COVD-19 pandemic and geopolitical rivalry. While fragmented and transnational global value chains (GVCs) are the defining feature of 21st century trade, their perceived fragility is increasingly perceived as a source of unacceptable vulnerability that must be mitigated by enhancing resilience. We frame the concept of resilience through the theoretical lens of insurance to explain two causes of under-provision in private markets: an information problem and a public goods problem. We outline three basic principles to anchor supply chain resilience policymaking: specificity, cost-consciousness and political sensitivity. We classify potential policies by their budgetary cost and level of government support, and argue above all for modesty and caution in public management of GVCs, which actually performed well during the pandemic and are a vital anchor of the rules-based international economic order.

Keywords: resilience, supply chains, global value chains, COVID-19, geopolitics

Suggested Citation

Lim, Darren and Thrower, Jack, The search for supply chain resilience (September 28, 2021). Available at SSRN: https://ssrn.com/abstract=3932573 or http://dx.doi.org/10.2139/ssrn.3932573

Darren Lim (Contact Author)

School of Politics and International Relations, ANU ( email )

Canberra, Australian Capital Territory 2601
Australia
+61261253584 (Phone)

HOME PAGE: http://https://researchers.anu.edu.au/researchers/lim-dj

Jack Thrower

affiliation not provided to SSRN

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
136
Abstract Views
640
rank
296,839
PlumX Metrics