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What is Middle-Income Countries ?

3754 reads · Last updated: December 5, 2024

Middle-Income Countries (MICs) are those nations with a per capita gross national income (GNI) that falls between the levels of low-income countries and high-income countries. The World Bank classifies countries based on per capita GNI into low-income, middle-income, and high-income categories, with middle-income countries further divided into lower-middle-income and upper-middle-income countries.The World Bank's specific classification criteria are:Lower-Middle-Income Countries: Per capita GNI between $1,046 and $4,095.Upper-Middle-Income Countries: Per capita GNI between $4,096 and $12,695.Characteristics of middle-income countries include:Economic Diversity: Diverse economic structures that include agriculture, industry, and services.Development Potential: Typically have high development potential and rapid economic growth rates, but also face challenges such as development imbalances and structural issues.Social Development: Social indicators such as education, healthcare, and infrastructure are generally better than those in low-income countries but still lag behind those in high-income countries.International Status: Have a certain level of influence and voice in international affairs, often acting as regional economic and political powers.Middle-income countries play a crucial role in the global economy and have significant potential for growth and development.

Definition

Middle-Income Countries (MICs) are those nations whose per capita Gross National Income (GNI) falls between low-income and high-income countries. The World Bank classifies countries into low-income, middle-income, and high-income categories based on per capita GNI, with middle-income countries further divided into lower-middle-income and upper-middle-income countries.

Origin

The concept of middle-income countries was introduced by the World Bank to help the international community better understand and categorize global economic development levels. As the global economy evolves, these classification standards are continually adjusted to reflect changes in the economic conditions of countries.

Categories and Features

Middle-income countries are divided into lower-middle-income countries, with a per capita GNI between $1,046 and $4,095, and upper-middle-income countries, with a per capita GNI between $4,096 and $12,695. Characteristics of middle-income countries include economic diversity, development potential, social development, and international status.

Case Studies

Brazil is a typical middle-income country with a diverse economic structure that includes agriculture, industry, and services. In recent years, Brazil has made significant progress in education and infrastructure but still faces issues like income inequality and economic imbalance. Another example is South Africa, an upper-middle-income country with significant economic and political influence in Africa, yet it faces challenges such as high unemployment and social inequality.

Common Issues

Investors considering middle-income countries often face risks of economic instability and policy changes. Although these countries have high development potential, they may also encounter challenges related to structural reforms.

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