Comparative country studies and experiences suggest that deliberate promotion of largescale industries and dedicated implementation of industrialisation policies are instrumental to a successful escape from the middle-income trap and transition to highincome status. The second aspect relates to prospective transition to structural fiscal deficits and depletion of the official foreign exchange reserves.
In this regard, and with an eye on slowing the depletion of external and fiscal buffers, there is need to enhance domestic resource mobilisation, by broadening the tax base and coverage, streamlining incentives and rationalisation of distortionary subsidies. The country needs to grow a vibrant middle-class; and have more tax-paying citizens by investing more on innovation, empowerment and home ownership.