This book looks at the growing economic impact of the Asian Driver
economies and particularly China on global prices and through this
on other low income economies. Farooki and Kaplinsky consider both
the possibility of a sustained rise in commodity prices as well as
the growing financialization of global commodity markets and
exploring the interconnections between these issues discuss the
theory and policy related challenges ahead. In the midst of a
sustained global economic crisis, the authors argue that countries
like China follow a commodities-intensive growth-path and that the
strategic significance of commodities prices lies not so much in
their nominal prices, but in their prices relative to other sectors
(manufactures and services); thus, economic crisis will affect not
only the commodities sector.
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