The World Bank has released a new analysis indicating that the next 25 years will be crucial for the world's 26 poorest countries in their quest to achieve middle-income status. These nations, home to over 40% of people living on less than $2.15 a day, are at the forefront of global efforts to eradicate extreme poverty. However, their progress has been hindered by conflict, economic crises, and weak growth.
According to the analysis featured in the upcoming Global Economic Prospects report, only six of these low-income countries are likely to reach middle-income status by 2050 without significant improvements in growth rates. "The next 25 years are a critical window of opportunity for the poorest countries—and the rest of the world has a vital stake in helping them get out of poverty," said Indermit Gill, Chief Economist and Senior Vice President for Development Economics at the World Bank Group.
The report is notable for systematically examining the progress and future prospects of today's low-income countries. It highlights that these nations face greater challenges than their predecessors, with many experiencing conflict or fragility and being particularly vulnerable to climate change. Additionally, most are dealing with debt distress or high risk of it.
Despite these challenges, these countries have substantial natural resources that could aid their development. They hold significant reserves of cobalt and graphite and have high potential for solar energy production. Furthermore, their working-age populations are expanding rapidly.
Nepal serves as an example of a country that overcame conflict to achieve middle-income status by 2019. Rwanda is another case where policy reforms led to rapid economic growth following periods of instability.
"The global battle to end extreme poverty will not be won until it is won in the 26 poorest countries," stated Ayhan Kose, Deputy Chief Economist at the World Bank Group. He emphasized that these nations require more attention due to their compounded challenges from conflict, climate change, and debt distress.
To advance economically over the next quarter-century, low-income countries can learn from others that transitioned successfully through political stability and supportive policies.