ABSTRACT
This chapter discusses main claims of the literature on the middle-income trap. Middle income countries are defined as the middle of the distribution of countries ranked by per capita income. The middle-income trap is then a special case of economic growth slowdown which makes the transition from middle- to high-income levels impossible. The factors which increase the probability of being trapped at middle-income levels are the following: a rise in wages incompatible with the productivity growth, excessive public investment, high dependence on exports, regional income disparity, household income inequality, and an aging population. Poland has been developing steadily in the last quarter of a century. Since 1991 until the 2020 pandemic-related lock-down, Poland has not suffered recession. The overall objective of the ‘Strategy for the Responsible Development’ plan is to build conditions and an environment for an increase in income among Poland’s inhabitants as well as improving social, economic, and territorial cohesion.
