Middle Income Countries

Context: An analysis by the World Bank has revealed that the next 25 years are going to be vital in determining if the poorest 26 countries would experience progress and would be classified as middle income countries.

More on the news

• These countries are home to 40% of people living on less than $2.15 a day, making them central to ending extreme poverty.

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What are Middle income economies?

• The World Bank classifies economies into four income groups: low, lower-middle, upper-middle, and high.

Key Highlights from the analysis

• Global Progress Overview
  • In 2000, there were 63 low-income countries.
  • By 2023, 39 countries (e.g., India, Indonesia, Bangladesh) became middle-income nations with per capita incomes exceeding $1,145.
    • The remaining countries, joined by South Sudan and Syria in the 2010s, have stagnated.
      • Their inflation-adjusted GDP per capita grew by only 0.1% annually over the past 15 years.
• Current Situation and Projections
  • Without substantial growth improvements, only six of the world’s 26 poorest countries are expected to achieve middle-income status by 2050.    
    • The remaining countries risk staying in poverty unless they significantly boost their economic growth.
      • These nations represent 40% of people living on less than $2.15 a day.       
  • Opportunities for Growth
    • Natural Resources:
      • These poor  countries hold 60% of cobalt and 50% of graphite reserves needed for renewable energy.
      • They have significant potential for solar energy production.
    • Demographic Advantage:
      • Expanding working-age populations can drive economic growth, unlike shrinking populations elsewhere.

Touch grass- doomscrolling

Context:  A recent study by French firm Greenly shows that Doomscrolling is bad — not just for the mind, society and politics, but also for the environment.

What is Touch grass?

• “Touch grass” is an internet slang term that means taking a break from screens and social media.
• It encourages people to spend time outdoors in nature.

What is doomscrolling?

• It is an act of spending a lot of time on social media to consume more negative news.  
• It involves consumption of short form video without stopping. 
  • This process gives information but it is not good for mental health.

SHAKTI Scheme

Context: Recently the Government updated the SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) Policy to enhance coal supply for the power sector.

About the SHAKTI Scheme

• Nodal Ministry: Ministry of Coal.
• Aim: To allocate coal transparently to coal-based Power Generating Companies.
• Objective: Ensure affordable and adequate coal supply for thermal power plants and improve transparency in coal linkage allocation.
• Eligibility For Allocation: All the Power Generating companies are eligible for coal linkage under SHAKTI Policy, subject to terms and conditions mentioned in the Policy. 
  • The SHAKTI Policy has various mechanisms of coal allocation to the power plants in a transparent manner.

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Achievements So Far

• 58 Thermal Power Plants (TPPs) have been granted linkage for a total capacity of 63,670 MW .
• 20 tranches of linkage auctions have been conducted by Coal India Limited under SHAKTI Policy and about 76.30 MT of coal has been booked by the successful bidders.

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