There was a time when China’s growth trajectory seemed unstoppable. The country’s massive appetite for raw materials, such as oil, metals — iron ore, aluminum, copper, steel — and grain, pushed commodity prices to record highs. At one point, China purchased approximately 40 percent of all natural resources in the world. Private investment poured into commodity producers and exporting countries bent over backwards to service China’s demand.
That demand is now in decline and it has triggered what some economists are calling the end of the commodities supercycle. Commodity exporters from Brazil to Australia to many countries in Africa are feeling the effects. Worse, China’s adjustment has sent ripples across the global economy, exacerbating market weaknesses in developed and developing economies alike.
While the consequences of China’s economic slowdown may dominate business news, there is limited talk about how it will affect global development and poverty alleviation.