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Hindering or enabling? The role of states in MIC to HIC transitions in ECA

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dc.contributor.authorWorld Bank
dc.date.accessioned2025-01-03T14:15:31Z
dc.date.available2025-01-03T14:15:31Z
dc.date.issued2025-01-03
dc.description.abstractWhile the state played a strong role in South Korea’s development, the state itself underwent a push for reforms in terms of promoting effective as well as impartial institutions. At the outset, institutional quality in South Korea was only marginally better than middle income countries (MIC) averages. This was followed by major improvements during the country’s upper middle-income stage. A rapid shift towards near-Organization for Economic Co-operation and Development (OECD) institutional quality occurred between 1980 and 2000, as South Korea transitioned from MIC to high-income status - when government rapidly brought corruption levels down and decisively moved to improve the public administration. An increasingly capable public sector leveraged foreign aid to support industrialists in adopting modern technologies and reinvesting profits. While risks of capture are inherent to industrial policy - and can turn such policies into a fiscal burden fueling rent-seeking - continuous public sector improvements and high-level commitment to success allowed maintaining a focus on performance rather than incumbency protection. This note focuses on the role of the state in the pursuit of middle- to high-income transitions in Europe and Central Asia (ECA). ECA MIC to high income countries (HIC) transitions account for almost one third of the countries (11 out of 34) that newly achieved high-income status since 1990 (WDR 2024) - suggesting that states in ECA converges must have gotten something right. This note explores differences in the role of the state across these groups, while also relating these back to the experience of South Korea and Finland.en
dc.identifierhttp://documents.worldbank.org/curated/en/099121924141531761/P18044119ccbf50c1196d612f007885e167
dc.identifier.doi10.1596/42594
dc.identifier.doihttps://doi.org/10.1596/42594
dc.identifier.urihttps://hdl.handle.net/10986/42594
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.rightsCC BY-NC 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by-nc/3.0/igo
dc.subjectMIDDLE-INCOME COUNTRY (MIC)
dc.subjectHIGH-INCOME COUNTRY (HIC)
dc.subjectPUBLIC SECTOR
dc.subjectFOREIGN AID
dc.subjectCORRUPTION LEVELS
dc.titleHindering or enabling? The role of states in MIC to HIC transitions in ECAen
dc.typeReport
dspace.entity.typePublication
okr.date.disclosure2025-01-03
okr.date.doiregistration2025-04-14T12:01:16.247467Z
okr.date.lastmodified2024-12-20T00:00:00Zen
okr.doctypeEconomic & Sector Work
okr.doctypeEconomic & Sector Work::Other Public Sector Study
okr.docurlhttp://documents.worldbank.org/curated/en/099121924141531761/P18044119ccbf50c1196d612f007885e167
okr.guid099121924141531761
okr.identifier.docmidP180441-9ccbf5b3-f9b7-49c1-96d6-2f007885e167
okr.identifier.externaldocumentum34439336
okr.identifier.internaldocumentum34439336
okr.identifier.report195812
okr.import.id6155
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099121924141531761/pdf/P18044119ccbf50c1196d612f007885e167.pdfen
okr.region.geographicalEurope and Central Asia
okr.sectorOther Public Administration
okr.themePublic Administration,Mitigation,Environmental Health and Pollution Management,Economic Policy,Air quality management,State-owned Enterprise Reform and Privatization,Green Growth,Economic Growth and Planning,Environment and Natural Resource Management,Public Sector Management,Climate change,Adaptation,Public Assets and Investment Management
okr.topicGovernance::Governance Indicators
okr.topicGovernance::Governance and the Financial Sector
okr.topicLaw and Development::Corruption & Anticorruption Law
okr.unitEFI-ECA-GOV-FM & PS-1 (EECG1)
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