International Raw Materials Markets : Rising Prices and Growing Conflict Potential

The article discusses the thesis that the current record price levels for raw materials are not a temporary phenomenon. Over the coming years, the situation on the raw materials markets is likely to remain tense as large countries such as China, India and Brazil press ahead with infrastructural development and industrialization.The closer economic ties now developing between newly industrializing countries (emerging economies) are a novel feature of the global economic landscape.As a result of this dynamic, a new geography of the raw materials trade is being created, with major industrializing countries emerging as growth motors. As part of this trend, the industrialized countries are losing influence, and weaker developing countries are becoming even more marginalized. Resource conflicts are erupting along these lines: highly developed countries are determined to safeguard their access to raw materials, while growth is slowing in the less developed countries and internal conflicts are increasing. To resolve these conflicts the article proposes new forms of governance, based on international cooperation, greater resource productivity and sustainable resource management in a process which must involve companies and NGOs alike