Question

Consider the following statements in relation to World Development Report-2024:

A. The middle-income trap refers to a situation where a country experiences stagnation in growth after reaching middle-income status, hindering its transition to high-income status.

B. As per the World Bank report, 118 countries were classified as middle-income countries.

C. India is one among the countries falling into the middle-income trap.

D. World Bank recommended to adopt 3i strategy like investment, infusion, and innovation for low-income countries to achieve high-income status.

Which of the above statements are correct?

1. A, B, and C only
2. A, C, and D only
3. A, B, and D only
4. All the above

Answer 1

Correct Answer: A, B, and D only

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Explanation:

1. Statement A: The middle-income trap refers to a situation where a country experiences stagnation in growth after reaching middle-income status, hindering its transition to high-income status.

   • Correct: This is the widely accepted definition of the middle-income trap, a concept used in economics and development studies.

2. Statement B: As per the World Bank report, 118 countries were classified as middle-income countries.

   • Correct: The World Development Report-2024 categorizes countries based on income levels, and this number aligns with the World Bank’s classification.

3. Statement C: India is one among the countries falling into the middle-income trap.

   • Incorrect: India is classified as a lower-middle-income country but has not stagnated in growth. The middle-income trap applies to countries that have stagnated after achieving middle-income status, which does not accurately describe India's economic trajectory.

4. Statement D: World Bank recommended to adopt 3i strategy like investment, infusion, and innovation for low-income countries to achieve high-income status.

   • Correct: The 3i strategy (investment, infusion, and innovation) is emphasized in the World Development Report to help countries transition from low to middle or high-income levels.

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Conclusion:

Statements A, B, and D are correct, while C is incorrect.
Thus, the correct answer is A, B, and D only.