There exist a lemma of the middle-income trap for the countries crossing the boundary of lower-income. As some of the privileges are gone so, open market tough competition hinders the national earning. There is a need for a higher profit margin to continue with the GDP growth rate.
This paper deals with this subject:
Article Dilemma between economic development and energy conservation...
The GDP concept is not he only measure of the welfare of the inhabitants of a country or region. It can be seriously misleading. The activity of the tertiary sector, in particular is difficult to measure. For example, how to take into account the productivity of the administration? If the local currency is not quoted on a competitive market, the nominal GDP has very few importance. I would suggest to follow the qualitative indicators, for example school attendance and to look for government measures to address this question. A larger share of skilled workers could be one of the ways to escape the "middle income trap". A focus on domestic consumption can help as well.
The problem of measuring administration is very similar to that of measuring the scientific "productivity" or an artistic performance.
In line with the implementation of the sustainable development goals and the pro-environmental transformation of the energy sector, renewable energy sources should be developed in both highly developed and developing countries. It is necessary to improve the technology of energy storage. An important issue is the diversification of energy sources, taking into account the specificity of the sector and industry economy as well as climatic and natural conditions.
Best regards,
Dariusz Prokopowicz
The so-called middle-development trap concerns countries that are catching up with the already highly developed ones. Catching up with currently highly developed economies was most often based on copying the technological solutions of rich countries and offering cheap labor, lower CIT tax rates and access to raw materials in a relative abundance and a consumer market with relatively high purchasing power, allowing to sell products created as part of direct investment foreign (FDI). In the current market situation, countries trying to catch up with the richest countries should put a strong emphasis on improving the competences of their employees (workforce and management skills). The most developed economies are based on highly productive services (e.g. IT or financial services) and high electricity consumption for this service economy model. Therefore, it is advisable to invest in electricity production based on renewable energy sources and to apply pioneering technologies to generate, collect and transmit electricity. It also seems that if a medium-developed country wants to join the most developed economies, it should invest in the largest possible work equipment in the processing industry, which in turn should be associated with an intensive development of technical education in a given country. Best regards
- Badges
- Science topic
- Similar topics
- Physical Sciences
- Materials Science
- Materials
- Inorganic Materials
- Metals
- Alloys
- Steel