Economics of lifting poor countries to middle class

  1. Land Reform: Land in under developed countries are concentrated under few people because of feudalism or similar systems. This has to be distributed equally so that agriculture can grow.
  2. Industrial subsidies plus export discipline: Manufacturing is the most common vehicle for fast economic growth. You need a protectionist policy(prioritising products of your own country) when you are building this. The priority at this stage is not profit - but learning how to build the industry.
  3. Financial policy in service of the first two goals.