World Development Report 2024: The Middle-Income Trap

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Table of Contents

• Key messages 1
• Using crises to destroy outdated arrangements 1
• Globalizing decarbonization 2
• Upgrade and compete through global low-carbon value chains 2
• Figure 9.1 3
• Use of globalized value chains for solar panels results in faster learning and lower global prices 3
• Figure 9.2 4
• Middle-income countries can support global decarbonization by becoming global suppliers of granular type 1 and type 2 energy technologies 4
• Figure 9.3 5
• Extraction and processing of critical minerals for the clean energy transition remain highly concentrated in certain countries 5
• Resist uncoordinated and protectionist industrial policy 6
• Figure 9.4 6
• Many middle-income countries have untapped potential to manufacture green products 6
• Figure 9.5 7
• All industrial policy implementation and green industrial policy implementation are correlated with GDP per capita 7
• Expanding low-carbon infrastructure 8
• Figure 9.6 9
• Countries must clear hurdles for both efficient domestic investment and foreign investment in renewable energy 9
• Figure 9.7 10
• In many middle-income countries it is economically efficient to expand renewable energy 10
• Assess financial returns and cost of capital for renewable energy 10
• Figure 9.8 11
• In low- and middle-income countries the cost of capital for renewables is high 11
• Figure 9.9 12
• Todays upper-middle-income countries are more energy efficient than upper-middle-income countries in the past 12
• Decoupling economic growth and emissions 12
• How middle-income countries can reduce energy intensity 13
• Figure 9.10 13
• Carbon emissions per unit of GDP have been declining worldwide 13
• Figure 9.11 14
• High-income countries have succeeded in reducing overall emissions by curbing energy intensity 14
• How middle-income countries can reduce emissions intensity 15
• Figure 9.12 15
• The world is slowly transitioning away from fossil fuels 15
• Notes 19
• References 20