Commodity markets: Options for developing countries

Over the past two years the prices of many commodities have risen, but the long-term trends in commodity markets have been damaging to the interests of developing countries. The purchasing power of such exports has been on a downward trend and the problems have been compounded by much volatility. This Briefing Paper looks at commodity price trends and variability, and the impact these factors have had on economic performance. The market continues to signal the desirability of export diversification, and this Briefing Paper considers the options both for stabilising earnings and for diversification.