World Bank Publishes Roadmap for the Rise of Emerging Economies

The World Bank has published a roadmap for over 100 emerging economies representing 75% of the world's population to overcome the middle-income trap. The Chief Economist, Indermit Gill, calls for a new approach with a focus on investments, innovation, and foreign technologies.

South Korea is cited as an example of a country that successfully left the middle-income trap. However, with demographic challenges, environmental concerns, and geopolitical tensions, there is no room for error for these 100 countries.

Another report from the World Bank warns that 108 countries, accounting for 40% of global GDP and housing 6 billion people, are at risk of being stuck in the middle-income trap. To avoid this, the World Bank proposes a 3i strategy: investment, infusion of foreign technologies, and innovation.

This strategy is crucial to address aging populations, protectionism, and the urgent need for energy transition. Only 34 middle-income economies have transitioned to high-income status since 1990. Without significant changes, it could take China 10 years and India 75 years to reach 25% of US income levels.