How to cross the "middle income trap"

It is even more difficult to successfully cross the middle-income trap.

The so-called middle-income trap means that a country or region stays in the middle-income range for a long time after entering the middle-income development stage. From a global perspective, after World War II, more than 100 countries and regions have reached the level of middle-income development, but few have really crossed the middle-income stage and entered the ranks of high-income, which is why this interval is called a "trap". Among them, the situation in Latin American countries is the most prominent, and most countries have been stranded in it for a long time. For example, Argentina has survived for half a century, and only Brazil in Latin America is expected to cross the trap and enter the ranks of high-income countries after several years of hard work. In East Asia, Japan successfully crossed the middle-income trap first and then the "Four Little Dragons". Malaysia is relatively qualified to achieve leapfrog, but it is still struggling in the trap. After Thailand entered the ranks of middle-income countries, its development speed slowed down.

Those who fail to cross the middle-income trap learn more.

Judging from the experience of countries and regions that have successfully crossed the middle-income trap, they mainly rely on positive upgrading policies and good systems. The specific performance is to adopt a positive industrial upgrading policy, vigorously promote the innovation of technology and management system, and promote the continuous upgrading of industrial structure and economic structure with innovation; Pay attention to the cultivation and utilization of human resources, constantly improve management and improve the efficiency of economic operation; Form an inclusive mechanism to support economic growth and social change. From the lessons of those countries and regions caught in the middle-income trap, the main reasons are that there is no policy to promote reform and innovation, and the economy lacks the motivation and support to improve and upgrade; Also because of too much direct intervention in the market, the market lacks vitality; In addition, the lack of inclusiveness in development has led to a large income gap and differentiation within society, which is also an important lesson.

Overcoming the middle-income trap requires all-round progress

From the perspective of economic development, the problem of crossing the middle-income trap is actually a phased promotion and leap-forward problem of economic development. Generally speaking, economic growth needs to change from relying on labor and capital investment to relying on technology and innovation, that is, the process of improving the efficiency of production factors, and also the process of realizing income from low to medium to high. The research holds that the most important factor leading to the failure to cross the middle-income trap is that the efficiency of production factors has declined instead of rising, mainly because economic growth has been stagnant for a long time at the stage of relying on labor and capital investment. If analyzed from a broader perspective, crossing the middle-income trap is a phased transformation of economic and social development, involving not only the economy, but also society, politics and even culture. Therefore, crossing the middle-income trap requires comprehensive progress, including maintaining sustained economic growth, improving the inclusiveness of economic and social development, protecting the ecological environment, and forming a good governance system.

Only by crossing the middle-income trap can we realize the Chinese dream.

China is at a critical stage of crossing the middle-income trap. Although many people are optimistic about this, we must clearly realize that the challenges facing China are very serious. To achieve a successful leap, we must first form a new economic growth mechanism and accelerate the transformation of economic growth from relying on labor and capital investment to relying on technology and innovation; Second, we must reverse the deterioration of the ecological environment and accelerate the transformation to a green economy and energy-saving economic structure; Third, we should establish an inclusive economic and social development mechanism to improve the social enjoyment of economic development achievements. To seize the development opportunities in the next decade and realize the Chinese dream, crossing the middle-income trap is a key step.

The key to crossing the middle-income trap is to change the way.

To overcome the middle-income trap, we need to speed up the transformation of economic development mode and continuously enhance the comprehensiveness, coordination and sustainability of development. The key is to give full play to the leading and decisive role of the market in resource allocation, handle the relationship with the market and society, give full play to the role of social forces in managing social affairs, create a good development environment, provide high-quality public services and safeguard social fairness and justice. Promote the transformation of finance from economic construction to public service, simplify administration and decentralize power to mobilize the enthusiasm of market players for innovation and development, focus on improving the ability of independent innovation, and greatly increase the contribution rate of scientific and technological progress to economic growth. Promote the adjustment of economic and social structure, promote the transformation and upgrading of industrial structure, and vigorously develop knowledge and technology-intensive industries and modern service industries. Improve the income distribution pattern, expand middle-income groups, increase the proportion of residents' income in the national income distribution, and increase the proportion of labor remuneration in the initial distribution. Deepen the reform of the financial system, give full play to the role of finance in optimizing the allocation of resources, and effectively prevent financial risks.