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  • The Economist The Middle-Income Trap - Focus

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    Nirmit Sanghavi
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    While poor countries tend to grow faster than rich ones by imitating innovation, not all poor countries from decades ago have caught up economically. A chart from the World Bank shows that most middle-income countries in 1960 remained middle-income in 2008, falling into what is called the "middle-income trap." Only 13 countries escaped this trap to become high-income, with Greece being one success story that should not be forgotten.

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    The Economist the Middle-Income Trap - Focus

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    While poor countries tend to grow faster than rich ones by imitating innovation, not all poor countries from decades ago have caught up economically. A chart from the World Bank shows that most middle-income countries in 1960 remained middle-income in 2008, falling into what is called the "middle-income trap." Only 13 countries escaped this trap to become high-income, with Greece being one success story that should not be forgotten.

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    3 views2 pages

    The Economist The Middle-Income Trap - Focus

    Uploaded by

    Nirmit Sanghavi
    While poor countries tend to grow faster than rich ones by imitating innovation, not all poor countries from decades ago have caught up economically. A chart from the World Bank shows that most middle-income countries in 1960 remained middle-income in 2008, falling into what is called the "middle-income trap." Only 13 countries escaped this trap to become high-income, with Greece being one success story that should not be forgotten.

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    10/07/2019 The middle-income trap - Focus

    Focus

    The middle-income trap


    Which countries have escaped the middle-income trap?

    Graphic detail
    Mar 27th 2012 | by The Economist online

    The forces of economic convergence are powerful, but not all powerful. Poor countries
    tend to grow faster than rich ones, largely because imitation is easier than invention. But
    that does not mean that every poor country of ve decades ago has caught up, as today's
    chart shows. It plots each country's income per person (adjusted for purchasing power)
    relative to that of America, both in 1960 and in 2008. The chart appeared in the World
    Bank's recent China 2030 report. If every country had caught up, they would all be found in
    the top row. In fact, most countries that were middle income in 1960 remained so in 2008
    (see the middle cell of the chart). Only 13 countries escaped this middle-income trap,
    becoming high-income economies in 2008 (top-middle). One of these success stories, it
    should not be forgotten, was Greece.

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    Graphic detail
    Mar 27th 2012 | by The Economist online

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