Mark Carney, a former Goldman Sachs employee and the current Governor of the Bank of Canada, is a huge commodities bull.

In a recent speech at the Canadian Club of Ottawa, he outlined his bullish thesis, which hinges on the explosive growth and urbanization of large emerging market economies like China and India.

In these countries, there is still plenty of room to growth.

“Consumption levels in major emerging markets are currently fractions of those in advanced economies” and “convergence [is] still a long way off,” he said.

The two major Asian countries that have experienced the “convergence” with Western living standards are South Korea and Japan.

During their “convergence” process in the 1960s (Japan) and 1980s (Korea), their demand for energy and metal commodities exploded.

Therefore, the urbanization and industrialization of bigger countries like China and India should fuel an even bigger boom that will “remain robust for some time,” said Carney.

Another impact of Asia’s urbanization is the spike in demand for capital goods that are needed in infrastructure building, he said.

For example, Illinois-based Caterpillar (NYSE:CAT), the world’s largest maker of construction equipment, has benefited handsomely from this trend.

Since March 2009, its shares have soared 324 percent versus just 82 percent for the S&P 500 index.

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