Thematic Dialogue on Environmental Sustainability and Green Industry, Inclusive Growth and Prosperity and Financing for Sustainable Economic Development

1. at theat the
Open Dialogue and ConsultationsOpen Dialogue and Consultations
High-Level Conference of MiddleHigh-Level Conference of Middle
Income CountriesIncome Countries
08 May 201308 May 2013

2. • Rise of the Middle-Income CountriesRise of the Middle-Income Countries
 2/3 of world population2/3 of world population
 40% of world gross product,40% of world gross product,
• A positive developmentA positive development
• A new engine of growth for the globalA new engine of growth for the global
economyeconomy

3. CHALLENGESCHALLENGES
 Sustain high levels of growthSustain high levels of growth
 Address social and institutional, financial,Address social and institutional, financial,
production vulnerabilitiesproduction vulnerabilities
 Close domestic poverty gaps/high levels ofClose domestic poverty gaps/high levels of
income inequalityincome inequality
 Prevent reversals in economic and socialPrevent reversals in economic and social
achievements of middle income countriesachievements of middle income countries

4. REDUCING EXTREME POVERTYREDUCING EXTREME POVERTY
 strong economic growth has lifted millions ofstrong economic growth has lifted millions of
people out of poverty and createdpeople out of poverty and created
burgeoning middle classesburgeoning middle classes
 has helped achieve MDG target of reducinghas helped achieve MDG target of reducing
global poverty 5 years ahead of timeglobal poverty 5 years ahead of time
 despite decline in global extreme povertydespite decline in global extreme poverty
overall, middle income countries nowoverall, middle income countries now
account for 64% of world’s pooraccount for 64% of world’s poor

5. CHALLENGE: ENSURINGCHALLENGE: ENSURING
GROWTH WITH EQUITYGROWTH WITH EQUITY
 pursue poverty-focused interventions andpursue poverty-focused interventions and
social assistance programs (eg., conditionalsocial assistance programs (eg., conditional
cash transfers).cash transfers).
 Energize the countryside with infrastructureEnergize the countryside with infrastructure
development and modernization ofdevelopment and modernization of
agricultureagriculture
 Keep interest rates and inflation levels lowKeep interest rates and inflation levels low

6. CHALLENGE: HARNESSING PUBLIC-CHALLENGE: HARNESSING PUBLIC-
PRIVATE SECTOR PARTNERSHIPSPRIVATE SECTOR PARTNERSHIPS
 attract additional resources for capital-intensiveattract additional resources for capital-intensive
infrastructure and other development projectsinfrastructure and other development projects
 offer more efficient and accelerated provision ofoffer more efficient and accelerated provision of
public goods and servicespublic goods and services
 help improve road network quality, transporthelp improve road network quality, transport
linkages and social services.linkages and social services.
 support the government’s anti-corruption advocacysupport the government’s anti-corruption advocacy
as projects are implemented under a level playingas projects are implemented under a level playing
field – open, competitive, transparent andfield – open, competitive, transparent and
accountable.accountable.

7. CHALLENGE : AVOIDING THECHALLENGE : AVOIDING THE
“MIDDLE-INCOME TRAP”“MIDDLE-INCOME TRAP”
1. Invest in infrastructure.
2. Guard against excessive capital inflows
3. Boost spending on research and development
and education.
4. Mobilize untapped pools of labor, including
women.

8. Closing RemarksClosing Remarks
 articulate needs and aspirations of middle income countriesarticulate needs and aspirations of middle income countries
as these are different from those of poorer developingas these are different from those of poorer developing
countriescountries
 foster international support for middle income countries, asfoster international support for middle income countries, as
they gradually assume higher responsibilities andthey gradually assume higher responsibilities and
cooperation tasks, even when they continue to becooperation tasks, even when they continue to be
recipients of aid.recipients of aid.
 Provide an environment conducive to maximizingProvide an environment conducive to maximizing
contribution of middle income countries to global growthcontribution of middle income countries to global growth
 Present a platform for more effective cooperation: North-Present a platform for more effective cooperation: North-
South-South and South-South cooperation.South-South and South-South cooperation.