
More than 100 countries, including China, are at risk of entering a 鈥榤iddle-income trap鈥� and failing to become wealthy nations, the World Bank said Thursday as it unveiled a 鈥榗omprehensive roadmap鈥� to reach high-income status.
In its 2024 World Development Report, the Bank said countries usually hit such a 鈥榯rap鈥� when they reach around 10 per cent of annual US GDP per capita 鈥� roughly $8,000 today 鈥� which can prove tough to move past.
With more than 100 countries representing more than 75 per cent of the world鈥檚 population currently classified as middle-income, tackling the issue will prove key for economic development in the decades ahead, the Bank added.
鈥楾he battle for global economic prosperity will largely be won or lost in middle-income countries,鈥� World Bank Group chief economist Indermit Gill said in a statement, calling for a 鈥榝resh approach.鈥�
鈥楩irst focus on investment; then add an emphasis on infusion of new technologies from abroad; and, finally, adopt a three-pronged strategy that balances investment, infusion, and innovation,鈥� he said.
鈥榃ith growing demographic, ecological and geopolitical pressures, there is no room for error.鈥櫬�
The Bank pointed to South Korea as an example of a former developing country which used this strategy to successfully reach high-income status.
鈥業f they stick with the old playbook, most developing countries will lose the race to create reasonably prosperous societies by the middle of this century,鈥� Gill said in the World Development Report.
鈥楾he team that has written this report hopes to radically alter this arithmetic,鈥� he added.