Middle-Income Countries at the Heart of Inclusive Social Development

Middle-income countries (MICs) occupy a crucial position in the global development landscape, home to 73% of the world’s population and 62% of its poor. Despite economic progress, these nations continue to grapple with persistent social inequalities, labour market distortions, and limited access to quality education, health care, and decent employment. The UN Secretary-General’s “Development cooperation with middle-income countries” report states that advancing social development in these nations is central to achieving the 2030 Agenda for Sustainable Development.

Although MICs have lifted millions out of poverty over the past decades, extreme poverty continues to impact its citizens, especially in lower-middle-income economies. The COVID-19 pandemic reversed years of progress, leaving poverty rates above pre-2018 levels. Beyond income, multidimensional poverty remains a critical concern. Economic growth has not always translated into improved social well-being, with benefits often concentrated in urban or affluent populations.

Inequality is another pressingly challenging issue. Gini coefficients across MICs range widely, with the highest disparities observed in Africa and Latin America. Gender inequality also persists, limiting women’s participation in education, politics, and the labour market. The report notes that the Gender Inequality Index has shown improvement overall, yet deep-rooted barriers prevent equal access to opportunities and social protection.

Social development hinges on productive employment and skills development. MICs face high youth unemployment and underemployment, coupled with mismatches between education systems and labour market needs. Informal employment continues to dominate, often without adequate wages or social security. Gender gaps in labour participation highlight systemic barriers that must be dismantled through equitable labour and education policies.

Building resilient and inclusive institutions is a cornerstone of social development. The report emphasizes the need for evidence-based policymaking, participatory governance, and transparent institutions capable of protecting vulnerable groups during economic and environmental transitions. Strengthening social dialogue, expanding social protection systems, and ensuring decent work for all are identified as critical pathways toward inclusive and just societies.

As MICs navigate the shift toward digitalization and low-carbon economies, social inclusion must remain at the core. A “just transition” approach ensures that workers and communities are not left behind in the process of economic transformation. The UN advocates for integrated policies that link social protection, reskilling programmes, and environmental sustainability, ensuring fair access to new opportunities.

Social development in MICs depends heavily on global solidarity. The report calls for greater concessional financing, debt relief, and reforms to the international financial architecture to enable these countries to invest in social infrastructure and human development. The UN system is urged to provide tailored, coordinated support that aligns with national priorities, emphasizing multidimensional measures that go beyond GDP to capture social well-being and vulnerability.

The report concludes that inclusive social development is both a moral and practical imperative. It demands cooperation across governments, multilateral institutions, and civil society to tackle inequality, strengthen social systems, and empower all people, especially women, youth, and marginalized communities. The upcoming Second World Summit for Social Development will offer a vital platform to accelerate action on poverty eradication, full employment, and social inclusion, ensuring that no one is left behind in the journey toward sustainable development.

To read the full report, click here.