World Bank Analysis Highlights Critical 25 Years for Poorest Nations to Achieve Middle-Income Status

Keywords: World Bank analysis, low-income countries, global poverty, natural resources, middle-income countries, economic growth, sustainable development

World Bank Report Highlights Urgent Need for Growth in Poorest 26 Countries to Achieve Middle-Income Status by 2050

A comprehensive analysis by the World Bank has underscored the next 25 years as pivotal for the poorest 26 countries, which are currently home to over 40% of the world’s population struggling to live on less than $2.15 per day. According to the report, these countries will play a central role in the global effort to eliminate extreme poverty. However, despite their significant potential, their progress has been hindered by persistent challenges such as ongoing conflicts, frequent economic crises, and stagnating growth.

The findings are part of the upcoming Global Economic Prospects report, set to be released on January 14, 2025. The report points out that the economic growth of these 26 countries has remained sluggish, with their inflation-adjusted GDP per capita growing by less than 0.1% annually over the past 15 years.

Challenges in Achieving Middle-Income Status

While there has been notable progress in other regions, the poorest countries have largely been left behind. At the start of the 21st century, there were 63 countries classified as ‘low-income.’ By 2023, 39 countries—including emerging markets like India, Indonesia, and Bangladesh—have ascended to middle-income status, boasting annual per capita incomes above $1,145.

However, for the poorest nations, which include South Sudan and Syria, progress has stalled. The World Bank’s analysis predicts that, barring a significant uptick in growth, only six of these low-income countries will likely achieve middle-income status by 2050.

The Promise of Natural Resources

Despite these challenges, the World Bank has pointed out that many of these countries are rich in natural resources, particularly minerals crucial for the global transition to renewable energy. The 26 low-income nations possess more than 60% of the world’s cobalt reserves and 50% of graphite reserves—two metals vital for generating and storing renewable energy. This natural resource wealth presents a unique opportunity for these nations to harness global demand for clean energy technologies and boost their economic prospects.

As the world continues its shift towards sustainable energy, these countries could see significant foreign investment, leading to job creation, economic diversification, and improved living standards. The key, however, will be how effectively these nations can manage their resources, overcome internal challenges, and implement growth strategies that lead to lasting poverty reduction.

The upcoming report is expected to outline recommendations for these countries to accelerate growth, including improving governance, investing in infrastructure, and fostering a more inclusive economic model that leverages their natural resources to drive development.

In summary, while the poorest countries face immense challenges, there are critical opportunities ahead if they can unlock their potential and navigate the coming decades with sustainable growth policies. Their path to middle-income status hinges on seizing these opportunities while addressing the deep-rooted issues that have stymied progress in recent years.

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