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Asian Drivers

Impact of the Asian Drivers on Commodities

The rapid growth China has led to a sharp increase in its demands for commodities, particularly since the turn of the century. This rising demand has been due to:

  • Heavy investments in infrastructure
  • The materials utilised in manufactures (many of which are exported)
  • The rising demand for meat and milk products as incomes rise
  • The use of agricultural products in the manufacture of biofuels.

India is following a similar path, but is a little behind the curve in its demand for imported commodities.

The net effect of this growing demand for commodities is that the price of many of these commodities has begun to rise, with profound implications for the terms of trade and for development strategies.

One potential beneficiary of the rising price of commodities are the SSA mineral exporting economies. The extent of these mineral exports and the share of China and India as buyers of these commodities is generally much lower than is publicly-perceived, particularly given the prominence given to China’s scramble for resources in SSA. Data on these SSA mineral exports can be accessed from the links below:

  • User Guide