Context:
World Bank releases the World Development Report 2024
Key Highlights:
- Highlights the issue of Middle-Income Trap
- Middle-Income Trap – A situation in which a Middle-Income Country experiences systematic growth slowdown as it is unable to take on new economic structures needed to sustain high-income levels.
- As countries grow wealthier, they usually hit a trap at about 10% of annual U.S. GDP per person and do not grow fast further.
- Since 1990, only 34 Middle-Income Countries (MICs) have managed to shift to high-income status.
- Challenges in escaping middle income trap – Rapidly aging populations, rising protectionism in advanced economies, and need to speed up energy transition.
- Foreign trade and investment are in danger of becoming constricted by geopolitical tensions, and populism is shrinking the room for governments to act.
- Rising debt and adverse demographics are crowding out private investors and reducing public investment.
- Accelerating climate action will require large investments in infrastructure and regulatory reforms that may stall productivity.
Source: World Bank
Previous Year Question
Which of the following gives ‘Global Gender Gap Index’ ranking to the countries of the world?
[UPSC Civil Services Exam – 2017 Prelims]
(a) World Economic Forum
(b) UN Human Rights Council
(c) UN Women
(d) World Health Organization
Answer: (a)
