The Rise of South-South Trade

David Wessel writes in the WSJ:

In his recent book, "Africa's Silk Road: China and India's New Economic Frontier," World Bank economist Harry Broadman argues, "China and India have a growing middle class, with increasing purchasing power and with an increasing appetite for imported goods" -- from Africa. The Asian giants offer Africa more than markets, though. He says Chinese and Indian companies are beginning to expand beyond oil and mining in Africa to telecommunications, food processing, textiles and construction...the importance of the explosion of South-South trade and investment goes far beyond this year's outlook. It could be the opening of a new epoch of globalization -- one in which the global economic might of big U.S. and European companies is challenged like never before, one in which the remarkable success of China and other Asian economies in lifting their people out of poverty is spread -- finally -- to other poor continents.