Refer Report
New Delhi : More than 100 countries, including India, will have to overcome several hurdles to join the ranks of high-income countries in the coming decades, and it could take nearly 75 years for India to reach even one-fourth of the current per capita income level of the world economy, the United States, a World Bank report predicted on Friday.
The World Bank’s report, titled “World Development Report 2024 – ‘Middle Income Trap’, focuses on Asian countries in particular as they seek to transition to higher per capita income levels. According to the report, it will take China more than 10 years and Indonesia 70 years to reach one-fourth of US per capita income. America’s current per capita income is over $68,000.
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Drawing on lessons learned over the past 50 years, the report notes that as countries become richer, they fall into middle-income traps. That means they could break through the income trap at about 10 percent of US gross domestic income (GDP) per capita annually – the equivalent of $8,000 today. Countries caught in such a problem are classified as middle-income countries by the World Bank.
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108 countries of the world are included in the middle-income category by the end of 2023. The annual per capita income of these countries is in the range of 1,136 to 13,845 US dollars. Home to 600 crore people, these countries account for 75 percent of the world’s population. Most alarmingly, two out of every three people in these countries live in extreme poverty and face even worse challenges in the future than they have experienced in the past. The country’s aging population and rising debt levels, hostile geopolitics and growing trade conflicts, and the challenges of accelerating economic growth without polluting the environment, the report said.
Middle income countries will decide whether the battle for global economic prosperity will be won or lost in the coming years. Since 1990, only 34 middle-income economies have made the transition to high-income class. More than one-third of them are beneficiaries of integration into the European Union or have been enabled to do so by the discovery of new oil reserves. – Indermeet GillChief Economist of the World Bank Group
Source: Marathi