Trucking travails highlight Brazil's vulnerabilities

Significance Even in a country used to trucking strikes, the latest industrial action had a dramatic impact. As roadblocks profoundly disrupted supply chains across the economy, petrol stations and airports ran out of fuel, supermarket shelves were empty, classes were suspended, hospitals faced lack of medicines and postponed operations, factories closed their gates and livestock died on farms unable to acquire feed. Impacts Brazil’s over-dependence on road transport cannot be reduced in the short term. Few presidential candidates are discussing the causes of underperformance, increasing post-election economic policy uncertainties. The next president is unlikely to enjoy a ‘honeymoon’ with an angry population.

Significance Kuczynski’s future as president hangs in the balance. His refusal to heed opposition demands for his resignation may harden the resolve of a congressional majority to vote for his ouster on grounds of ‘moral incapacity’. Kuczynski, who will face his parliamentary accusers on December 21, is embroiled in controversy as to whether he received funds from Brazilian construction company Odebrecht when a minister. Impacts Kuczynski’s removal would probably lead to a downgrade in Peru’s credit rating. It would delay decision-making, but not necessarily herald a shift in economic policy. The hiatus would have a further negative impact on institutional stability. The main beneficiary, at least in the short term, would be Keiko Fujimori.


Subject Civil aerospace outlook. Significance The November Dubai Airshow may herald a slowdown in the global civil aerospace business as neither Airbus nor Boeing registered large airline orders. The falling cost of fuel has led many airlines to delay expensive modernisation plans. Concerns over the state of the global economy will also dampen short-term demand. Impacts Bottlenecks in supply chains may constrain future production expansions. Airbus will face an expensive decision in the early 2020s about launching an all-new narrow-body to replace the A320neo. New programmes will be affected harder by a downturn, with companies fighting for sales in the competitive regional airliner market. The battle for market share could force at least one contender out of business over the next five years.


Significance The first round's leading candidate, former Vice-President Lenin Moreno, of the leftist ruling party Alianza Pais, will face former banker and centre-right candidate Guillermo Lasso on April 2. The announcement came amid accusations of fraud and growing criticism over the delays in releasing the official results. Impacts The election results will increase economic uncertainty and dampen economic activity in the short term. Political tensions will rise as the two presidential candidates battle to secure votes outside of their core constituencies. Whatever the runoff result, Alianza Pais will hold its National Assembly majority, exerting significant influence over legislative matters. With economic woes hindering the new government, four years of unpopular right-wing rule could pave the way for a Correa comeback in 2021.


Significance Many producers, facing budgetary pressures because of low oil prices, support output restraint, but they need to act in concert. Russia and Saudi Arabia have offered a freeze rather than cuts, and Riyadh is not prepared to adopt any stance that provides a comparative advantage to regional rival Iran. Impacts Prices could rise somewhat in the short term due to the drop in Kuwaiti production caused by industrial action. Another factor pushing up oil prices could be any further upward revision to the expected contraction in US crude output. Downside risks dominate in the long run, owing to producers' inaction, record inventories and the return of interrupted supplies.


Subject State nuclear power firm Rosatom will form lead of Russia's foreign economic policy. Significance The nuclear power industry is one of the few areas of high-technology in which Russia is a world leader. State-owned Rosatom, whose remit covers Russia's civilian and military nuclear assets, is a global leader across a range of all the stages of the civilian nuclear fuel business. Continued rapid expansion of its export sales, from Asia Pacific to Latin America and parts of Europe, is an important component of Moscow's state-led foreign economic policy. Impacts Domestically, the economic slowdown may hinder Rosatom's plans for expansion of nuclear power. The slowdown in the domestic economy also means that export markets will be the short-term focus of Rosatom's activities. Rosatom is unlikely to benefit significantly from the proposed official import-substitution drive. The company's success on global markets further entrenches Russia's position as an energy superpower.


2020 ◽  
Vol 41 (1) ◽  
pp. 63-73 ◽  
Author(s):  
Joseph Sarkis

PurposeThis paper, a pathway, aims to provide research guidance for investigating sustainability in supply chains in a post-COVID-19 environment.Design/methodology/approachPublished literature, personal research experience, insights from virtual open forums and practitioner interviews inform this study.FindingsCOVID-19 pandemic events and responses are unprecedented to modern operations and supply chains. Scholars and practitioners seek to make sense of how this event will make us revisit basic scholarly notions and ontology. Sustainability implications exist. Short-term environmental sustainability gains occur, while long-term effects are still uncertain and require research. Sustainability and resilience are complements and jointly require investigation.Research limitations/implicationsThe COVID-19 crisis is emerging and evolving. It is not clear whether short-term changes and responses will result in a new “normal.” Adjustment to current theories or new theoretical developments may be necessary. This pathway article only starts the conservation – many additional sustainability issues do arise and cannot be covered in one essay.Practical implicationsOrganizations have faced a major shock during this crisis. Environmental sustainability practices can help organizations manage in this and future competitive contexts.Social implicationsBroad economic, operational, social and ecological-environmental sustainability implications are included – although the focus is on environmental sustainability. Emergent organizational, consumer, policy and supply chain behaviors are identified.Originality/valueThe authors take an operations and supply chain environmental sustainability perspective to COVID-19 pandemic implications; with sustainable representing the triple bottom-line dimensions of environmental, social and economic sustainability; with a special focus on environmental sustainability. Substantial open questions for investigation are identified. This paper sets the stage for research requiring rethinking of some previous tenets and ontologies.


Subject Economic policy to 2019. Significance In a climate of global monetary tightening, domestic and international political tensions, and brittle ties with the EU, investor-friendly economic policies would help secure continued capital inflows and investment in Turkey, thus keeping the lira stable and maintaining a tenuous economic recovery. However, economic policy has recently been geared towards achieving a short-term boost rather than longer-term stability and competitiveness. Impacts The AKP may not regain the confidence of international financial markets, which once saw it as a 'safe pair of hands' for the economy. Sharp variations in exchange rates, interest rates, prices and demand are likely given global conditions and unpredictable policy-making. Economic policy uncertainty will add to the complexity of the environment for doing business.


Significance All presidential candidates are emphasising their credentials to lead economic recovery, though only a handful have a realistic chance of winning. Right-winger Guillermo Lasso of Creando Oportunidades (Creating Opportunities) and leftist 'Correista' Andres Arauz of the Centro Democratico (Democratic Centre) are the leading contenders. Impacts New virus strains could see infections soar, exacerbating pressures on the economy and already strained hospitals. A Lasso-Arauz runoff would increase short-term political and economic uncertainty as the two candidates offer differing recovery plans. Ecuador’s medium-term economic outlook will be weak regardless of who wins the presidency.


2017 ◽  
Vol 117 (9) ◽  
pp. 1866-1889 ◽  
Author(s):  
Vahid Shokri Kahi ◽  
Saeed Yousefi ◽  
Hadi Shabanpour ◽  
Reza Farzipoor Saen

Purpose The purpose of this paper is to develop a novel network and dynamic data envelopment analysis (DEA) model for evaluating sustainability of supply chains. In the proposed model, all links can be considered in calculation of efficiency score. Design/methodology/approach A dynamic DEA model to evaluate sustainable supply chains in which networks have series structure is proposed. Nature of free links is defined and subsequently applied in calculating relative efficiency of supply chains. An additive network DEA model is developed to evaluate sustainability of supply chains in several periods. A case study demonstrates applicability of proposed approach. Findings This paper assists managers to identify inefficient supply chains and take proper remedial actions for performance optimization. Besides, overall efficiency scores of supply chains have less fluctuation. By utilizing the proposed model and determining dual-role factors, managers can plan their supply chains properly and more accurately. Research limitations/implications In real world, managers face with big data. Therefore, we need to develop an approach to deal with big data. Practical implications The proposed model offers useful managerial implications along with means for managers to monitor and measure efficiency of their production processes. The proposed model can be applied in real world problems in which decision makers are faced with multi-stage processes such as supply chains, production systems, etc. Originality/value For the first time, the authors present additive model of network-dynamic DEA. For the first time, the authors outline the links in a way that carry-overs of networks are connected in different periods and not in different stages.


Sign in / Sign up

Export Citation Format

Share Document