Changes

[[Openness]] to experience is important to one's level of creativity.<ref>[https://www.sciencedirect.com/science/article/abs/pii/S0092656609001317 Openness to experience, plasticity, and creativity: Exploring lower-order, high-order, and interactive effects], ''Journal of Research in Personality'', Volume 43, Issue 6, December 2009, Pages 1087-1090</ref> Needless to say, top-down, authoritarian regimes which restrict information, engage in heavy propaganda and oppress dissent, are not big fostering openness in their societies. Thus, their societies have less of an ability to be creative/innovative.

[[Openness]] to experience is important to one's level of creativity.<ref>[https://www.sciencedirect.com/science/article/abs/pii/S0092656609001317 Openness to experience, plasticity, and creativity: Exploring lower-order, high-order, and interactive effects], ''Journal of Research in Personality'', Volume 43, Issue 6, December 2009, Pages 1087-1090</ref> Needless to say, top-down, authoritarian regimes which restrict information, engage in heavy propaganda and oppress dissent, are not big fostering openness in their societies. Thus, their societies have less of an ability to be creative/innovative.

In today's economic climate, there is evidence that in order [[middle-income countries]] to become high-income countries, they must escape the [[middle-income trap]] and innovation plays a role in this matter.<ref>[https://asiasociety.org/new-york/china-may-be-running-out-time-escape-middle-income-trap China May Be Running Out of Time To Escape the Middle-Income Trap], Asia Society, 2017</ref>  

In today's economic climate, there is evidence that in order [[middle-income countries]] to become high-income countries, they must escape the middle-income trap and innovation plays a role in this matter.<ref>[https://asiasociety.org/new-york/china-may-be-running-out-time-escape-middle-income-trap China May Be Running Out of Time To Escape the Middle-Income Trap], Asia Society, 2017</ref>  

   

   

* [https://grok.com/share/c2hhcmQtNA%3D%3D_1468b637-e527-4077-b698-44cd56ccd6d1 High-income countries are rarely authoritarian countries in our technological age driven by innovation]: "High-income countries are less likely to be authoritarian because innovation-driven economies thrive on openness, free exchange of ideas, and individual autonomy, which clash with authoritarian control. Data backs this: in 2024, most high-income countries (per World Bank classifications) score high on the Democracy Index (e.g., Norway, Denmark, Canada), while authoritarian regimes like China or Russia, though economically advanced, rely on state control and suppress dissent, limiting certain types of innovation. However, exceptions exist—Singapore and some Gulf states combine wealth with authoritarianism, leveraging technocratic governance and resource wealth rather than broad-based innovation. The correlation isn't absolute, but authoritarianism often stifles the creative freedom needed for cutting-edge technological progress."

* [https://grok.com/share/c2hhcmQtNA%3D%3D_1468b637-e527-4077-b698-44cd56ccd6d1 High-income countries are rarely authoritarian countries in our technological age driven by innovation]: "High-income countries are less likely to be authoritarian because innovation-driven economies thrive on openness, free exchange of ideas, and individual autonomy, which clash with authoritarian control. Data backs this: in 2024, most high-income countries (per World Bank classifications) score high on the Democracy Index (e.g., Norway, Denmark, Canada), while authoritarian regimes like China or Russia, though economically advanced, rely on state control and suppress dissent, limiting certain types of innovation. However, exceptions exist—Singapore and some Gulf states combine wealth with authoritarianism, leveraging technocratic governance and resource wealth rather than broad-based innovation. The correlation isn't absolute, but authoritarianism often stifles the creative freedom needed for cutting-edge technological progress."

=== Russia's history relative to the middle-income trap ===

=== Russia's history relative to the middle-income trap ===

In terms of the middle-income trap, Russia escaped the middle-income trap in during these periods: Russia (2012–14, 2022- present). Although the war in Ukraine boosted Russia's GNP, due to USA's weakness listed above, Russia's wartime economy negatively affected its long-term economic potential in terms of the civilian sector such as the erosion of long-term human capital; lower budget for education spending; lower R&D spending in the civilian sector; less resources to improve its labor productivity rate and diversify its economy, etc. (See: [[Essay: Russia's economy is that of a shrinking, aging, and poorly qualified population]]). In the past, a number of factors were impeding Russia's ability to escape the middle-income trap.<ref>[https://daviscenter.fas.harvard.edu/insights/russias-economy-war-ukraine-and-hopes-post-putin-liberalization Russia’s Economy, War in Ukraine, and Hopes for Post-Putin Liberalization], Davis Center for Eurasian and Asian Studies, Harvard University,  December 4, 2023</ref><ref>[https://www.brookings.edu/wp-content/uploads/2016/07/tt20-russia-growth-prospects-drobyshevsky.pdf Russia: Prospects for Growth and Convergence] by Sergey Drobyshevsky (Scientific Director, Gaidar Institute for Economic Policy; Managing Director, Russia’s G-20 Expert Council</ref><ref>[https://www.intellinews.com/moscow-blog-russia-is-stuck-in-the-middle-income-trap-134557/ MOSCOW BLOG: Russia is stuck in the middle income trap], bne Intellinews, December 21, 2017</ref>

 

In terms of the [[middle-income trap]], Russia escaped the middle-income trap in during these periods: Russia (2012–14, 2022- present). Although the war in Ukraine boosted Russia's GNP, due to USA's weakness listed above, Russia's wartime economy negatively affected its long-term economic potential in terms of the civilian sector such as the erosion of long-term human capital; lower budget for education spending; lower R&D spending in the civilian sector; less resources to improve its labor productivity rate and diversify its economy, etc. (See: [[Essay: Russia's economy is that of a shrinking, aging, and poorly qualified population]]). In the past, a number of factors were impeding Russia's ability to escape the middle-income trap.<ref>[https://daviscenter.fas.harvard.edu/insights/russias-economy-war-ukraine-and-hopes-post-putin-liberalization Russia’s Economy, War in Ukraine, and Hopes for Post-Putin Liberalization], Davis Center for Eurasian and Asian Studies, Harvard University,  December 4, 2023</ref><ref>[https://www.brookings.edu/wp-content/uploads/2016/07/tt20-russia-growth-prospects-drobyshevsky.pdf Russia: Prospects for Growth and Convergence] by Sergey Drobyshevsky (Scientific Director, Gaidar Institute for Economic Policy; Managing Director, Russia’s G-20 Expert Council</ref><ref>[https://www.intellinews.com/moscow-blog-russia-is-stuck-in-the-middle-income-trap-134557/ MOSCOW BLOG: Russia is stuck in the middle income trap], bne Intellinews, December 21, 2017</ref>

For more information, please see:  

For more information, please see:  

== Asian Development Bank: The middle-income countries transition to high-income counties around the globe: Characteristics of graduation and slowdown ==

== Asian Development Bank: The middle-income countries transition to high-income counties around the globe: Characteristics of graduation and slowdown ==

''See also:'' [[Middle-income countries]] and [[Middle-income trap]]

''See also:'' [[Middle-income countries]]  

[[File:Latin America (orthographic projection).svg|thumbnail|200px|right|Many [[Latin America]]n middle-income countries haven't become high-income countries and have half the [[labor productivity]] of countries that are technological leaders.<ref>[https://www.brookings.edu/articles/is-economic-growth-in-middle-income-countries-different-from-low-income-countries/ Is economic growth in middle-income countries different from low-income countries?] by Barry Eichengreen, Donghyun Park, and Kwanho Shin, [[Brookings Institute]], September 25, 2017</ref><ref>[https://www.econ.cam.ac.uk/research-files/repec/cam/pdf/cwpe2267.pdf Is Southeast Asia falling into a Latin American style “middle-income trap”?], Cambridge Working Papers in Economics, CWPE 2267. Published 9 November 2022. Website www.econ.cam.ac.uk/cwpe</ref>

[[File:Latin America (orthographic projection).svg|thumbnail|200px|right|Many [[Latin America]]n middle-income countries haven't become high-income countries and have half the [[labor productivity]] of countries that are technological leaders.<ref>[https://www.brookings.edu/articles/is-economic-growth-in-middle-income-countries-different-from-low-income-countries/ Is economic growth in middle-income countries different from low-income countries?] by Barry Eichengreen, Donghyun Park, and Kwanho Shin, [[Brookings Institute]], September 25, 2017</ref><ref>[https://www.econ.cam.ac.uk/research-files/repec/cam/pdf/cwpe2267.pdf Is Southeast Asia falling into a Latin American style “middle-income trap”?], Cambridge Working Papers in Economics, CWPE 2267. Published 9 November 2022. Website www.econ.cam.ac.uk/cwpe</ref> ]]

See also: [[Middle-income trap]] ]]

[[Middle-income countries]] is the term which the [[World Bank]] defines as: "economies with a gross national income (GNI) per capita between $1,136 and $13,845 as of 2024. MICs consist of lower-middle-income countries and upper-middle-income countries, both of which are part of the income categories that the World Bank uses to classify economies for operational and analytical purposes,"<ref>[https://www.investopedia.com/terms/m/middle-income-countries.asp Middle-Income Countries (MICs): Characteristics and Significance], Investopedia</ref> as measured in U.S. dollars.

[[Middle-income countries]] is the term which the [[World Bank]] defines as: "economies with a gross national income (GNI) per capita between $1,136 and $13,845 as of 2024. MICs consist of lower-middle-income countries and upper-middle-income countries, both of which are part of the income categories that the World Bank uses to classify economies for operational and analytical purposes,"<ref>[https://www.investopedia.com/terms/m/middle-income-countries.asp Middle-Income Countries (MICs): Characteristics and Significance], Investopedia</ref> as measured in U.S. dollars.

The abstract for the Asian Development Bank 2015 paper entitled ''The Middle-Income Transition around the Globe: Characteristics of Graduation and Slowdown'' indicates:

The abstract for the Asian Development Bank 2015 paper entitled ''The Middle-Income Transition around the Globe: Characteristics of Graduation and Slowdown'' indicates:

{{Cquote|The paper investigates the situation of middle-income economies around the world. Since 1965, only 18 economies with a population of more than 3 million and not dependent on oil exports have made the transition to being high-income. Many more have not been able to move beyond the middle-income stage. We conduct statistical tests of differences between two groups of economies across a range of growth and development variables. The results suggest that middle-income economies are particularly weak in the following areas: governance, infrastructure, savings and investment, inequality, and quality—but not quantity—of education. The findings are used to suggest whether the People’s Republic of China is successfully progressing through the middle-income stage or whether it may get caught in a [[middle-income trap]].<ref>[https://www.adb.org/sites/default/files/publication/159840/adbi-wp519.pdf ''The Middle-Income Transition around the Globe: Characteristics of Graduation and Slowdown''] by Paul Vandenberg, Lilibeth Poot, and Jeffrey Miyamoto. Asian Development Bank. ADBI Working Paper Series. No. 519. March 2015</ref>}}

{{Cquote|The paper investigates the situation of middle-income economies around the world. Since 1965, only 18 economies with a population of more than 3 million and not dependent on oil exports have made the transition to being high-income. Many more have not been able to move beyond the middle-income stage. We conduct statistical tests of differences between two groups of economies across a range of growth and development variables. The results suggest that middle-income economies are particularly weak in the following areas: governance, infrastructure, savings and investment, inequality, and quality—but not quantity—of education. The findings are used to suggest whether the People’s Republic of China is successfully progressing through the middle-income stage or whether it may get caught in a middle-income trap.<ref>[https://www.adb.org/sites/default/files/publication/159840/adbi-wp519.pdf ''The Middle-Income Transition around the Globe: Characteristics of Graduation and Slowdown''] by Paul Vandenberg, Lilibeth Poot, and Jeffrey Miyamoto. Asian Development Bank. ADBI Working Paper Series. No. 519. March 2015</ref>}}

== Innovation and countries going from middle-income countries to high-income countries ==

== Innovation and countries going from middle-income countries to high-income countries ==

== Middle-income trap ==

== Middle-income trap ==

[[File:Flag of the PRC.png|thumbnail|right|205px|The middle-income country of [[China]] is endeavoring to become a high-income country.

[[File:Flag of the PRC.png|thumbnail|right|205px|The middle-income country of [[China]] is endeavoring to become a high-income country.]]

''See also:'' [[Innovation]] and [[Productivity]]

See: [[Middle-income trap]] ]]

''See also:'' [[Middle-income trap]] and [[Innovation]] and [[Productivity]]

The [[middle-income trap]] refers to an economic situation where a middle-income country is failing to transform itself to a high-income economy due to its rising costs and declining competitiveness (Historically few countries successfully manage the transition from low to middle to high income).<ref>[https://elibrary.worldbank.org/doi/10.1596/9780821387856_CH04#:~:text=The%20middle%2Dincome%20trap%20refers,to%20middle%20to%20high%20income. Middle-Income Trap]</ref><ref>[https://asiasociety.org/new-york/china-may-be-running-out-time-escape-middle-income-trap China May Be Running Out of Time To Escape the Middle-Income Trap], Asia Society, 2017</ref><ref>[https://www.adb.org/publications/tracking-middle-income-trap-what-it-who-it-and-why-part-1 Tracking the Middle-Income Trap: What is It, Who is in It, and Why? (Part 1)], Asia Development Bank, 2012</ref><ref>[https://www.adb.org/publications/tracking-middle-income-trap-what-it-who-it-and-why-part-2 Tracking the Middle-Income Trap: What is It, Who is in It, and Why? (Part 2)], Asia Development Bank, 2012</ref>

The middle-income trap refers to an economic situation where a middle-income country is failing to transform itself to a high-income economy due to its rising costs and declining competitiveness (Historically few countries successfully manage the transition from low to middle to high income).<ref>[https://elibrary.worldbank.org/doi/10.1596/9780821387856_CH04#:~:text=The%20middle%2Dincome%20trap%20refers,to%20middle%20to%20high%20income. Middle-Income Trap]</ref><ref>[https://asiasociety.org/new-york/china-may-be-running-out-time-escape-middle-income-trap China May Be Running Out of Time To Escape the Middle-Income Trap], Asia Society, 2017</ref><ref>[https://www.adb.org/publications/tracking-middle-income-trap-what-it-who-it-and-why-part-1 Tracking the Middle-Income Trap: What is It, Who is in It, and Why? (Part 1)], Asia Development Bank, 2012</ref><ref>[https://www.adb.org/publications/tracking-middle-income-trap-what-it-who-it-and-why-part-2 Tracking the Middle-Income Trap: What is It, Who is in It, and Why? (Part 2)], Asia Development Bank, 2012</ref>

The Asia Society describes the middle-income trap thusly: "The “middle-income trap” is a theory of economic development in which wages in a country rise to the point that growth potential in export-driven low-skill manufacturing is exhausted before it attains the [[Innovation|innovative]] capability needed to boost [[productivity]] and compete with developed countries in higher value-chain industries. Thus, there are few avenues for further growth — and wages stagnate."<ref>[https://asiasociety.org/new-york/china-may-be-running-out-time-escape-middle-income-trap China May Be Running Out of Time To Escape the Middle-Income Trap], Asia Society, 2017</ref>

The Asia Society describes the middle-income trap thusly: "The “middle-income trap” is a theory of economic development in which wages in a country rise to the point that growth potential in export-driven low-skill manufacturing is exhausted before it attains the [[Innovation|innovative]] capability needed to boost [[productivity]] and compete with developed countries in higher value-chain industries. Thus, there are few avenues for further growth — and wages stagnate."<ref>[https://asiasociety.org/new-york/china-may-be-running-out-time-escape-middle-income-trap China May Be Running Out of Time To Escape the Middle-Income Trap], Asia Society, 2017</ref>

*[https://cepr.org/voxeu/columns/trapped-china-and-middle-income-trap Trapped! China and the ‘middle-income trap’], 2024

*[https://cepr.org/voxeu/columns/trapped-china-and-middle-income-trap Trapped! China and the ‘middle-income trap’], 2024

=== Global Innovation Index ===

=== Global Innovation Index ===