A new role for commodities in development strategies

This section discusses the challenges and opportunities of commodity-based growth and development strategies in relatively high but volatile pricing environments. It first provides an overview of historical price developments in agriculture and natural resources. It then goes on to analyse how developing countries have been able to leverage agricultural and natural resource export potential in this high-price environment to underpin their development. The section highlights which policies have been useful, but also pinpoints remaining challenges in realizing this export potential. Finally, it also considers those challenges arising from heightened volatility, with a particular focus on food importers and natural resource exporters vulnerable to boom-bust cycles.