The disruptive entry of China into the global economy, with its thirst for minerals and energy and its prowess in manufacturing, has had a major impact on the terms of trade. India’s impending entry is likely to exacerbate this shift in relative prices.
This shift in relative prices poses both challenges and opportunities for SSA, including
constraining the prospects of the manufacturing sector.
The Making the Most of Commodities Programme (MMCP) addresses the opportunities opened for SSA minerals and energy producing economies. Its primary focus is on how to enhance these economic and social opportunities arising from the exploitation of primary commodities. This requires policies to exploit SSA mineral resources particularly through the alignment of the National System of Innovation with the commodities sector. Furthermore the MMCP will focus on the opportunities of an expanded commodities specialisation for other productive sectors (upstream and downstream linkages), inequality and governance.