Economic growth and its indicators in an international conference that sounds the alarm
Economic growth and its indicators in an international conference that sounds the alarm
In the face of mounting debt and slowing global economic growth, middle-income countries issued an international call to reform the financial system, promote sustainable investments in all countries, and develop a road map to get out of what is known as the “middle-income trap”.
This was in the past two days – April 28 and 29 – when “The High-Level Conference of Middle-Income Countries (MICs)” was held; in the Philippine capital, “Manila”, senior representatives of 24 middle-income countries participated, which are countries that suffer greatly from alarming levels of public debt, which reduces the margin of financial movement necessary to advance the wheel of development in these countries in particular, amid increasing economic challenges and debts. It burdens their economies and the economies of emerging countries.
The importance of this conference comes given that 27 countries have succeeded since 2000 in moving from the middle-income category to the high-income category, and this is despite the fact that many other countries have suffered setbacks in this path. The importance of the “High-Level Conference on Middle-Income Countries” also lies in the fact that approximately 60% of the world’s poor are located in middle-income countries. That is, the greatest challenge will be in fighting and eliminating poverty if our focus is limited to low-income countries alone.
In this regard, Armida Salesiah Alisegbana, Executive Secretary of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), said: “The transition of middle-income countries towards more developed economies – with their commitment to the path of sustainable development – requires strengthening development financing tools and expanding their scope to meet the needs of this critical stage”.
She added: “This calls for internal political reforms that focus on expanding fiscal space, preserving what is called “sustainable debt sustainability,” and directing resources towards productive green investments.”
Makati Declaration Outputs
The conference concluded by issuing the “Makati Declaration on Middle-Income Countries – Makati Declaration on Middle-Income Countries”, which called on the United Nations to provide broader support to these countries; In order to access innovative development financing sources and mechanisms, in addition to assistance in a number of vital areas, such asdigital transformation, and building resilience to global crises.
In this context, the “Makati Declaration” – issued by the conference – highlighted the fundamental challenges that hinder the progress of middle-income countries, warning of the danger of falling into what is known as the “middle-income trap,” where the pace of economic growth slows down, and countries lose their development dynamism if they do not address structural imbalances in a timely manner.
The text of the declaration read: “We realize that middle-income countries often experience recurring slowdowns in growth, and if left unaddressed, the global economy will contract in the long term. Consequently, countries cannot achieve high income levels”.
Challenges of economic growth
The declaration also pointed to a wide range of challenges that still face these countries, including widening social gaps, chronic poverty, unemployment, loss of biodiversity, and digital transformation gaps between developed and developing countries and societies.
In light of the decline in development support from traditional partners in the Global North, the participating countries stressed the importance of strengthening cooperation among themselves, especially through technical cooperation mechanisms with countries of the South, which are now taking an increasing role in new development policies.
Hence, Enrique Manalo – Philippine Foreign Minister – stated: “We are witnessing a reshaping of traditional development partnerships, with an increasing number of middle-income countries–including Philippines–to allocate more resources to support South-North cooperation”.
The Makati Declaration on middle-income countries also included a set of proposed measures and policies; The most prominent of which are: developing productive capabilities, enhancing human and social development, in addition to supporting innovation and digital transformation in all sectors, as well as adopting development indicators that go beyond measuring gross domestic product, and strengthening the ability of these countries to withstand multidimensional crises.
On the other hand, the outcomes of the Makati Declaration reflect a growing awareness that efforts to achieve the Sustainable Development Goals (SDGs) – especially Goal 8, which is concerned with promoting economic growth – require a different approach for middle-income countries.
In conclusion,Earth Guards – in view of the Makati Declaration – believes that supporting middle-income countries is the key to achieving more equitable and sustainable global development; Therefore, through its various platforms, it continues its commitment to highlighting issues of equitable development and efforts to provide decent work. So that we can build a more balanced and inclusive economic and human future.
