Africa’s Share of World Exports Has Been Declining

PERFORMANCE AND PATTERNS OF AFRICAN
-
ASIAN TRADE AND INVESTMENT FLOWS
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Since 1999, Africa has seen price increases for most of its primary export commodities, as illustrated in figure 2.3. With the exception of raw materials, whose prices have been relatively stagnant, other commodities have experienced noticeable increases in their price levels. This is, of course,
especially the case for energy prices, driven by the sharp price increase in the worldwide petroleum market. Metal and non-oil mineral prices also have grown substantially. FIGURE 2.3
Prices Have Risen for Many of Africa’s Major Export Commodities, Not Just Oil
80 123 80 80 87 103 233 104 142 98 0
50 100 150 200 agriculture energy food minerals/metals raw materials
price index 1990 = 100
2000 Source World Bank staff estimates.
FIGURE 2.4
Percent Contribution of China and India to the Growth of World Imports of
Selected Commodities, 2000–04
⫺10 0
10 20 30 40 precious stones crude oil metallic ores woods cotton
India
China
pe
rce
n
t
Source: Goldstein et al. 2006.
02-Chap2:02-Chap2 10/9/06 2:41 PM Page 65

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AFRICA
’
S SILK ROAD
:
CHINA AND INDIA
’
S NEW ECONOMIC FRONTIER
The worldwide rise of commodity prices has been engendered in large part by the rapid growth of Asian developing countries, especially China and India (figure 2.4). These two countries contributed close to 40 percent of global import growth for precious stones, 30 percent for crude oil, and percent for metallic ores. Their demand for these commodities is likely to grow, or at least not change from current levels, in the foreseeable future.
4
The recent surge in commodity prices mostly benefits resource-rich countries. Asia has seen little increases in its export commodity prices. The
FIGURE 2.5

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