How does a poor country become a rich country? There’s a simple blueprint — or at least, that’s what many economists used to believe. But over the years, a lot of rapidly developing economies have stalled out. These countries aren’t poor anymore, but they’re not rich either. They’re stuck in the middle. The World Bank calls this problem the “middle income trap.”
And if there’s a poster child for the middle income trap, many would point to Brazil. For a time, Brazil had one of the fastest growing economies in the world. On today’s show, we head to Brazil to understand why the old blueprint for economic development might not work so well anymore.
The story starts in the Amazon rainforest. With an audacious plan to industrialize the country as fast as possible.
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This episode of Planet Money was hosted by Jeff Guo. It was produced by James Sneed and Luis Gallo. It was edited by Marianne McCune, fact-checked by Sierra Juarez, translation help from Sarah Robbins. It was engineered by Robert Rodriguez and Jimmy Keeley. Alex Goldmark is our executive producer.
A very, very special thanks to Carrie Kahn and Valdemar Geo from NPR’s Rio bureau. Also to Otaviano Canuto and Denis Minev.
Music: Source Audio – “Idea 016,” “Dark Days,” and “Take Sanctuary.”
