Problem
Unstable supply of raw materials
Other Names:
Lack of commodity importsCommodity production shortfalls
Uncertain access to natural resources
Nature:
The developed countries depend on a stable supply of raw materials for their industries. Over the last decade this has been threatened by inadequate investment in the production of raw materials. Unstable supplies result in inflationary pressures in the developed market economies, setting off a spiral from which no one escapes. In such a situation it is in the interests of developed countries to ensure stability of prices and supplies.
Incidence:
Total resource requirements are increasing rapidly over the entire world. In developed countries, although population is increasing slowly, per capita use is increasing rapidly, while the opposite is happening in developing countries. Traditionally, raw materials have been classified as non-renewable resources, but a distinction may be important between 'losable' resources, such as oil and coal, and 'non-losable' resources, such as metals, which can be used several times over by recycling processes.
Broader Problems:
Shortage of natural resources Strategies:
Trading commoditiesStructuring commodity marketsReducing commodity production shortfallsProviding sufficient commodity importsAbstaining from commodity imports References:
Bennett, James T and Williams, Walter E: Strategic Minerals: the economic impact of supply disruptions Subject(s):
Commerce → Import, exportCommerce → Purchasing, supplying
Fundamental Sciences → Material
Industry → Commodities
Industry → Production
Resources → Resources
Societal Problems → Instability
Societal Problems → Scarcity
Related UN Sustainable Development Goals:
Problem Type:
D: Detailed problems Date of last update
04.10.2020 – 22:48 CEST