Question

Compare the criteria of development by world bank with that of UNDP. Write the limitations of the criteria by world bank.

Answer 1

Answer:

World Bank uses per capita income to compare but UNDP uses health, education and per capita income to compare the status of the countries.

Limitation: While average income is useful it doesn't tell us how it is distributed among people (see the attachment for example)

Answer 2

Answer:

Criterion used by world bank to measure development is on the basis of income, countries which have higher per capita income are considered as rich countries and countries having lower per capita income are poor countries.

Criterion used by UNDP for measuring development is by following the process of estimating HDI with simple average indices like longevity i.e. health knowledge, education and per capita income. it does not rely only on per capita income as in case of world bank. According to human development report education and health are also indicators of development beside food, clothing and shelter.