Middle-Income Countries (MICs)
Candlefocus EditorThe World Bank divides countries into four categories based on their per capita gross national income (GNI). One of these categories currently comprises of countries with a GNI per capita centered around $1,026 to $12,475; these countries are the Middle-Income Countries or MICs. This important demographic bloc includes countries with burgeoning populations and economies, which are expected to play an important role in shaping the structure of the global economy in the years to come.
At present, most of the economically developed nations are classified as high-income categories by the World Bank, while the world’s poorest countries are classified as low-income countries. This forms the basis of the World Bank’s operational services to its clients. The Middle-Income Countries (MICs) are silently gaining a greater share of the global population and economic activity; and this, inevitably has a great impact on the conventional economic ecosystem. In terms of sheer population, the majority of world’s citizens live in the MICs. China, India, Indonesia and Brazil are some of the biggest countries in this bloc. Although these countries may not be as wealthy as their high-income counterparts, the level of economic growth in the MICs definitely has global significance.
It is expected that the continued economic expansion of the MICs will help to reduce the global population below the poverty line, which is defined as $1.90 per day. This is especially true of countries such as India and China, which have made remarkable strides in curbing poverty in the past few decades. However, the MICs still lag behind their wealthier counterparts in terms of access to quality healthcare, education and other basic services. Moreover, these countries have also been impacted adversely by environmental degradation as a result of their industrial development.
Given their population and contribution to global economic growth, the MICs have a major influence on global economic trends. Their influence is seen in the international trade policies and practices that emerge from their need for commodity prices and access to capital, technology and resources. The MICs are an important source of consumer demand for global products and services, making them a crucial target for companies wishing to expand overseas.
In conclusion, Middle-Income Countries form an important demographic and economic bloc for the global economy. Their increasing population, economic growth and contribution to global economic trends make them an important factor for the world's geopolitical stability, economic growth and international trade. They are a crucial target for global companies wishing to expand overseas, and their rising economic power will likely continue to shape the international economic order.