Quarter of developing countries poorer than in 2019, World Bank finds
GS3Economy · S&T · Environment · Security· Growth, inflation & macro indicators· Mains·
Why in news
The World Bank reported that a quarter of developing countries have lower incomes than in 2019 due to economic challenges and policy mistakes.
Background
The World Bank estimates global growth for emerging market and developing economies at 4% for the next year. Chief Economist Indermit Gill highlighted that current growth is insufficient to create jobs for the growing youth population.
Facts for Prelims
- FactWorld Bank estimates 4% growth for emerging market and developing economies next year
- PostIndermit Gill is the Chief Economist of the World Bank
- FactOne-quarter of developing countries are experiencing lower incomes than in 2019
For Mains
Q. Analyze the factors contributing to the economic stagnation in developing nations and suggest policy measures to ensure inclusive growth for the youth population.
Dimensions to cover in your answer
- Structural bottleneck: Insufficient global growth rates to absorb the expanding youth labor force
- Policy-driven stagnation: Impact of fiscal mismanagement and lack of investment in technology and education
- External shocks: Compounding effects of regional wars and famines on developing economy stability
Keywords: Economic Stagnation · Inclusive Growth · Fiscal Discipline · Human Capital Investment · Emerging Markets
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