Crossing The "Middle Income Trap" International Experiences, Lessons And Implications For China

According to World Bank standards, in2010China’s per capita GDP topped$4000, China has entered the ranks of upper-middle-income economy side. Historicalexperience shows that after World War II, only one tenth middle-income countriesbecome high-income countries, per capita income in other countries is always difficultto break through$10,000. In recent years, China faces rising cost of productionfactors, comparative advantage weakening, diminishing marginal benefit,unsustainable model of development, some economists believe that China’s economicis facing across the "middle income trap" problem.In the theoretical analysis of economics,"middle income trap" is actually theprocess of economic development in the state of equilibrium, because the powerfactor of economic growth is not sustainable in the past, offsetting effect of economicgrowth factors, resulting in economic Growth is limited to stagnation or even slowdown. Across the "middle income trap", in essence, research in the country hasreached middle-income status, how to maintain sustained economic growth, nationalincome increasing problem. Classical theory of economic growth from differentangles explain why some developing countries will fall into economic stagnationdilemma, or is lack of faith, lack of motivation; Or was mediocre and incompetentstate administration; or is it too early into the pursuit of high consumption patterns,the resources are a lot to enjoy. The World Bank report in2007has been able to putforward the "middle income trap" concept, it is for the second half of the20th century,a summary of some lessons for developing countries.Throughout Southeast Asia, Latin America bogged down in the "middle incometrap" national circumstances, is not difficult to find reasons for the economicstagnation mainly from three aspects behind the development of the system, thedistribution of income inequality and the lack of innovative technologies. UnderChina’s economic "new normal" economic and social problems have becomeincreasingly prominent, learning from history, in his country as a mirror, to get rid ofthe old development system and mode constraints, the formation of new economic growth point, across the "middle income trap", became an unavoidable issue. But itshould be noted that compared with other deep "middle income trap" countries,China’s economic growth potential, as a vast regional differences and strong, largescale economies, level of productivity of multi-level performance. Under the "newnormal", the Chinese economy will have a more rapid growth of deep spacecontinuity.National and international community has entered the ranks of middle-incomecountries, many countries can maintain rapid economic growth, the mostrepresentative is the Japanese and Asian "tigers", the experience is worth oursummary and reference. To successfully cross the "middle income trap", China shouldchoose a policy more in line with the country’s economic situation, relying on thestructural characteristics of its own resources, manpower, environment, technology,starting from the top-level design, starting from the mechanism reform, getmomentum; constantly improve their own technology content and capital-intensive,labor productivity has improved steadily; upgrading the industrial organization,reducing the proportion of primary industry, through the transformation and upgradingthe basic position of the manufacturing sector to consolidate and improve theproportion of tertiary industry. To actively support the development of small andmicro enterprises, and guide enterprises to participate in international economiccompetition, in the background of economic globalization Forced mechanism todetect the use of their own lack; vigorously develop modern agriculture, increase theadded value of agricultural products by increasing the income level of farmers, so asto ensure sustained and healthy economic development.