ALGIERS, Algeria, May 21. Middle-income countries play a vital role in global development, President of the Islamic Development Bank (IsDB) Muhammad Al Jasser said at the panel discussion themed "Avoiding the Middle-Income Trap: Accelerating SDGs Achievement in Middle-Income Countries", which took place within the framework of the Bank's Annual Meetings in Algiers, Trend reports.
"They are home to nearly three-quarters of the world's population and contribute over 40 percent of global GDP," he explained.
According to him, within the IsDB, 34 of 57 member countries are classified as middle-income countries, a clear indication of their importance to our collective progress. Despite notable achievements, many middle-income countries find themselves facing the so-called middle-income trap, a stage where economic growth slows and the transition to high-income status becomes increasingly elusive.
"Since 1990, only a few countries have successfully made that leap, typically those that have pursued bold reforms and built strong institutions," the bank chief reminded.
Among the most pressing issues, Al Jasser named:
- Sluggish growth, exacerbated by weak productivity and underdeveloped innovation ecosystems;
- Rising debt, reducing fiscal space for critical investments;
- Food insecurity, exposing weaknesses in agricultural systems and supply chains;
- Limited access to concessional finance, thus hindering efforts to achieve sustainable development goals (SDGs).
"These are not just obstacles, they are urgent calls to action," he stressed.
According to him, achieving SDGs by 2030 requires a new approach, one that prioritizes structural transformation, economic diversification, and investments in human capital. This means equipping youth with future skills, promoting entrepreneurship and innovation, and integrating climate resilience into development strategies.
"At the IsDB, we are committed to supporting our member countries in their journey through diverse financing solutions. But finance alone is not enough," Al Jasser pointed out.
He also called for joint work on reforming the global financial architecture to better reflect the needs and realities of middle-income countries.
"We must also work together to ensure that global financing frameworks are better aligned with the needs and realities of middle-income countries," added the IsDB president.
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