Saturday, August 19, 2017 - 12:40:01

Indonesia needs 30 years to become advanced nation

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Having been classified as a middle-income country since the early 1990s, Indonesia needs about 30 years to come out of what is called the middle-income trap and move into the high-income group of countries.

Indonesia , according to the Organisation of Economic Cooperation and Development (OECD) forecasts, is expected to shift from a middle-income nation to a high-income, or advanced country, by 2042.

Antara News quoted the head of the Asia Desk, OECD Development Centre, Kensuke Tanaka, as saying, “That is much slower than Malaysia , which is expected to make that transition by 2020, China (by 2026) and Thailand (by 2031).

The middle income trap refers to a situation in which a country that has become a middle-income nation fails to become a high-income country and experiences stagnation.

Based on international standards, a country is said to have fallen into a middle-income trap if it stays at the middle-income level for 42 years.

Indonesia , Tanaka said, is only leading the Philippines , which is forecast to shift to an advanced nation by 2051, Vietnam by 2058 and India by 2059.

The OECD official said to escape the trap, developing countries must change their basic economic structures and develop their modern service sectors.

According to Indonesian Finance Minister Chatib Basri, of the 113 countries classified as middle-income nations since 1960, only 13 such as Japan , the Republic of Korea , Singapore and Ireland have been successful in developing into high-income states.-VNA

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