The Middle-Income Trap: How Countries Grow Fast, Then Go Nowhere
Around the world, many countries share the same story. They grow fast. They escape poverty. They industrialize. And then… they stop. Not because of war. Not because of disaster. But because growth quietly runs out of fuel. This is called the middle-income trap . What “Getting Stuck” Actually Looks Like Let’s make this concrete. Take Thailand . Around the year 2000 , Thailand’s GDP per capita was roughly $4,000 (PPP-adjusted). At that time, expectations were high. Thailand was called “the next Asian tiger.” Fast forward more than 20 years . Today, Thailand’s GDP per capita is still hovering around $7,000–8,000 in nominal terms. That’s progress — but painfully slow. Two decades of factories, exports, and globalization for a gain that richer countries achieve in just a few years. That’s what the middle-income trap looks like: not collapse — stagnation . Malaysia: Better, But Still Stuck Malaysia did slightly better. In the early 2000s, Malaysia’s income per...