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Word divided the countries into 2 categories - Rich countries and Poor countries on the basis of only materialistic things. However non materialistic things like dignity, freedom are also important. So this was the limitation.
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Per Capita Income is the main criterion used by the World Bank in classifying different countries.The limitation of this criterion are: → It doesn't show distribution of income. → It also ignores other factors such as infant mortality rate, literacy level, healthcare, etc.
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