Describe middle-income economies

Question

What will be an ideal response?

Answer 1

About one-third of the world's population resides in nations with middle-income economies. The World Bank divides middle-income economies into lower-middle-income ($996 to $3,945) and upper-middle-income ($3,946 to $12,195). According to the World Bank, some nations have been more successful than others in implementing key elements of change and bringing about a higher standard of living for their citizens. Among other factors, high rates of inflation, the growing gap between the rich and the poor, low life-expectancy rates, and homeless children have been visible signs of problems in the transition toward a free market economy in countries such as the United States. As compared with lower-middle-income economies, nations having upper- middle-income economies typically have a somewhat higher standard of living and export diverse goods and services, ranging from manufactured goods to raw materials and fuels. As middle-income nations have been required to make payments on their debts, the requisite structural adjustments have necessitated that the countries make spending cuts in areas that formerly helped some of the poor, including subsidized food, education, and health care.