World Development Report 2024: The Middle-Income Trap
The World Development Report 2024 addresses middle-income countries' challenges in avoiding the "middle-income trap," advocating a "3i strategy" focusing on investment, technology, and innovation for sustainable growth.
Read original article
The World Development Report 2024 focuses on the challenges faced by middle-income countries in avoiding the "middle-income trap." It highlights that these nations, home to 6 billion people, must adopt a multifaceted approach to economic development. Lower-middle-income countries should move beyond investment-driven strategies to incorporate modern technologies and business practices. Upper-middle-income countries need to prioritize innovation and restructure their economies to enhance economic freedom and social mobility. The report outlines a "3i strategy" for development: low-income countries should focus on investment (1i), lower-middle-income countries should combine investment with technology infusion (2i), and upper-middle-income countries should add innovation to their strategies (3i).
The report emphasizes the importance of disciplining vested interests, rewarding merit, and capitalizing on crises to foster economic growth. It notes that many middle-income countries have struggled to transition to high-income status, with only 34 achieving this since the 1990s. Challenges such as high debt, aging populations, and rising protectionism complicate this transition. The report advocates for policies that promote competition, support technological upgrading, and ensure efficient use of resources. It also stresses the need for structural changes to overcome stagnation and highlights the role of crises in creating opportunities for reform. Overall, the report serves as a guide for middle-income countries to navigate their economic challenges and achieve sustainable growth.
Related
Why Warm Climates Tend to Create Poor Economies
Warmer countries with extractive institutions struggle economically. Colder nations like the Netherlands, lacking resources, thrive due to inclusive institutions. "Why Nations Fail" emphasizes inclusive institutions' role in economic development, contrasting resource curse impacts. Sudan's gum arabic conflict and the Netherlands' success exemplify these dynamics.
The UK can go back to being the richest country in the world
The UK aims to regain global wealth, focusing on economic gaps between regions like the Greater South East and North England. Emphasis on historical strengths in areas like Bradford and the necessity for enhanced infrastructure and government aid to boost Northern economy. Calls for reduced fiscal transfers, increased investments, and balanced government support to drive economic success and address regional inequalities for overall prosperity.
World will miss target of tripling renewable electricity generation by 2030: IEA
The IEA warns of falling short on tripling renewable electricity by 2030, with current policies suggesting only a doubling. Urges governments to turn promises into actions, emphasizing solar and wind energy integration.
New inflation warning: Get used to high interest rates, IMF says
The IMF warns of persistent inflation leading to higher global interest rates due to high service prices and trade tensions. Central banks are cautious about rate cuts, emphasizing sustainable inflation levels. Major central banks may reduce borrowing costs later in the year, anticipating a global inflation slowdown. Tariffs, sticky services price inflation, and trade tensions pose risks to economic growth. IMF downgrades US growth forecasts but revises India and China upwards, highlighting Asia's role in global growth.
World Bank warns 108 countries risk being stuck in 'middle-income trap'
The World Bank warns that 108 countries, including China and India, risk a middle-income trap due to outdated growth strategies. A new "3i strategy" is suggested for sustainable economic growth.
1 comments'More than 100 countries—including China, India, Brazil, and South Africa—face serious obstacles that could hinder their efforts to become high-income countries in the next few decades, according to a new World Bank study that provides the first comprehensive roadmap to enable developing countries to escape the “middle-income trap.”'
Related
Why Warm Climates Tend to Create Poor Economies
Warmer countries with extractive institutions struggle economically. Colder nations like the Netherlands, lacking resources, thrive due to inclusive institutions. "Why Nations Fail" emphasizes inclusive institutions' role in economic development, contrasting resource curse impacts. Sudan's gum arabic conflict and the Netherlands' success exemplify these dynamics.
The UK can go back to being the richest country in the world
The UK aims to regain global wealth, focusing on economic gaps between regions like the Greater South East and North England. Emphasis on historical strengths in areas like Bradford and the necessity for enhanced infrastructure and government aid to boost Northern economy. Calls for reduced fiscal transfers, increased investments, and balanced government support to drive economic success and address regional inequalities for overall prosperity.
World will miss target of tripling renewable electricity generation by 2030: IEA
The IEA warns of falling short on tripling renewable electricity by 2030, with current policies suggesting only a doubling. Urges governments to turn promises into actions, emphasizing solar and wind energy integration.
New inflation warning: Get used to high interest rates, IMF says
The IMF warns of persistent inflation leading to higher global interest rates due to high service prices and trade tensions. Central banks are cautious about rate cuts, emphasizing sustainable inflation levels. Major central banks may reduce borrowing costs later in the year, anticipating a global inflation slowdown. Tariffs, sticky services price inflation, and trade tensions pose risks to economic growth. IMF downgrades US growth forecasts but revises India and China upwards, highlighting Asia's role in global growth.
World Bank warns 108 countries risk being stuck in 'middle-income trap'
The World Bank warns that 108 countries, including China and India, risk a middle-income trap due to outdated growth strategies. A new "3i strategy" is suggested for sustainable economic growth.