EADI Prize for Development Studies 2010
We are very delighted to award the 2010 EADI Prize for Excellence in development Studies to a young researcher who has submitted a paper which raises questions at the heart of the research process.
EADI has created the prize in 2005 with the objective to reward and bring recognition “to encourage creative, interdisciplinary, multifaceted research on development issues” from the upcoming generation of development specialists.
Among the entries of this year’s competition, the jury has identified a winner.
Masuma Farooki with her outstanding paper on “China’s Metals Demand and Commodity Prices: A Case of Disruptive Development?”
The paper examines the role of China’s demand in the 2003 to 2008 commodity boom, and its impact on the future behaviour of hard-commodity prices. The persistence of the demand driver, despite the interruption due to the financial crisis towards the end of 2008, leads Masuma to conclude that the Boom is the start of an expansionary phase of a commodity Super Cycle. She explains that China’s increase in base-metals consumption has directly led to demand disruptions in the global commodity markets and offers a chance of ‘commodity optimism’ for resource exporting developing countries.
Masuma acknowledges that supply constraints in the mining industry and the role of financial markets have had an impact on commodity prices in recent years. However, she states, the nature of China’s resource intensive growth will continue to put upward pressures on commodity prices and therefore ‘disrupts’ the traditional role of commodities in the development arena. Its continued demand does open space for mineral and metal exporting countries to experience positive effects from their resource endowments, so the author.
Masuma believes that hard-commodity-exporting countries have an opportunity to benefit from the current and expected growth of commodity prices in the medium term. For base-metal ore abundant countries, commodity optimism may well define the next fifty years of global economic development. It may well now be an opportune moment to make the most of commodities, she concludes.
It is a thought provoking, clear, accessible paper containing well knit arguments, usage of appropriate words, good logical sequencing and is very relevant to the current context.
Masuma Farooki graduated with a Master in Economics from the University of Lahore and with a Master in Development Studies from the Institute of Development Studies in the UK. Masuma afterwards successfully pursued a PhD at The Open University in the UK under the title ‘The Southern Engines of Growth and Hard Commodity Prices: Does China Lead to Disruptive Development?’
We congratulate Masuma and wish her all the best for her future career!