Escaping the Middle-Income Trap at the 1st Mile

Over the past 35 years, few economies have managed to shift from middle-income to high-income status. Escaping this “middle-income trap” will be even more difficult than before for the 108 countries currently classified as such. Home to 75% of the global population and over 60% of the extreme poor, these countries face unprecedented demographic, ecological, and geopolitical challenges.

Hosted by IFAD and the World Bank Rome Office, with support from the Institute for Economic Development, this event explored how boosting investment in rural areas is one pathway to support countries in this shift by addressing rural poverty, fighting climate change, and helping create economic opportunities for all.

The conversation highlighted key insights from the World Development Report 2024: The Middle-Income Trap. Somik Lall, Senior Adviser to the Chief Economist of the World Bank Group and lead author of the report, presented its main findings and discussed how rural investment can be a pathway for countries to transition from middle-income to high-income status. He as joined by Donal Brown, Associate Vice-President, Department for Country Operations at IFAD, for an in-depth conversation on catalyzing investment at the 1st mile in rural areas.

The engaging exchange was moderated by Stefania Lenoci, Head of WBG Rome Office and Special Representative to Southern Europe, the Vatican and the Rome-based UN Agencies, and included questions and insights from the audience.