The development of human capital is a critical factor for Azerbaijan's economic growth, said the World Bank (WB) regional director for the South Caucasus Rolande Pryce at the presentation of the World Bank's World Development Report (WDR) in Baku, AzVision.az reports.
Addressing the event, Pryce emphasized that while Azerbaijan has made significant strides in utilizing its natural resources, the country’s ambitions go beyond that.
"In 1993, Azerbaijan's per capita income stood at just $110. By 2023, the country had transformed into a middle-income nation, with per capita income soaring to $6,660—60 times higher—according to the Atlas method for GNI per capita. This remarkable growth is largely due to Azerbaijan's effective use of its natural resources. However, the country’s ambitions go far beyond this achievement. To attain high-income status, Azerbaijan must not only attract significant physical investments but also focus on the development of human capital, retention of talent, and institutional strengthening, all of which are essential for diversifying its economy," she said.
She also pointed out the challenges faced by many countries, especially in their transition from middle-income to high-income status.
"Since the 1990s, only 34 middle-income countries have successfully made this leap. The remaining 108 countries, by the end of 2023, remain stuck in the middle-income trap. Since 1970, the average per capita income in these nations has consistently remained below 10 percent of the US per capita income," she added.
Additionally, Pryce noted that achieving high-income status is becoming increasingly difficult due to rising debt levels, aging populations in developing countries, and the growing protectionism in developed economies.
The World Development Report has been published annually by the World Bank since 1978, providing in-depth analysis of various aspects of economic development. These reports remain the World Bank’s most significant contribution to the global discussion on development challenges.
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