Global Income Distribution and the Middle-Income Strata: Implications for the World Development Taxonomy Debate

At the heart of the debate about the middle-income strata has been the question: How accurate are traditional measures of the knowledge of middle-income segments and their distribution between and within countries? The article analyses the recent shifts in the World Bank’s Country Income Classification, which rests on income thresholds. It also explores the implications of those changes for the way the emergence of the middle strata is conceived at international, regional and national levels. To that end, a particular emphasis is given to the Latin American region. The aim is to raise awareness on widespread shortcomings and drawbacks regarding the composition of the world development taxonomy and the conventional notion of the middle-income strata.