Middle Income Countries and Multilateral Development Banks Traps on the Way to Graduation

Otaviano Canuto, Matheus Cavallari and Tiago Ribeiro dos Santos

No 1909, Research papers & Policy papers on Economic Trends and Policies from Policy Center for the New South

Abstract: Multilateral Development Banks (MDBs) have two financing windows, with different terms, dedicated to low- and middle-income countries. Countries are presumed to cross those windows as their income per capita rises, with middle-income countries (MICs) eventually “graduating” to a non-client status once they reach some criteria. However, due to what may be called “middle-income traps”, such progression toward graduation has been limited to a small number of countries.

Date: 2019-07
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Persistent link: https://EconPapers.repec.org/RePEc:ocp:rpaeco:pp1910

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