as the countries of asia have urbanised and industrialised. the demand for infrastructure has grown very strongly when people move to the cities new dwellings need to be built and as living standards rise so too does the quality of dwellings
constructed. mr lowe said. he added that the growth of urban centres requires the building of communication and transport
networks such as roads bridges and railways-all requiring raw materials. particularly steel. the rise in demand for raw materials in asia has led to an increase in the price of raw materials over the last 10 years causing australia terms of trade
to have significantly increased.
mr lowe says the increase in demand and prices are at the highest level today and have raised the return to capital in australias resixurces sector.