How has the World Development Report classified countries ? What are the limitations of this report ?
CBSE Class X Social Science LA (5 Marks)
Answers
(i) World Bank classifies countries according to the Per Capita Income.
(ii) Countries with PCI of more than US $ 12616 per annum and above are called rich countries.
(iii) Countries with PCI less than US $ 1035 are called poor countries.
(iv) Countries with income between US $ 1530 per annum are called low middle income countries.
The limitations of this report are :
(i) It considers only income and not other aspects such as literacy, health, life expectancy, etc.
(ii) World Development Report (WDR) only tells about income and not how it is distributed among the citizens.
Answer:
For the aim of pursuing capital projects, the governments of low- and middle-income countries can apply for loans and grants from the World Bank, an international financial institution.
Explanation:
The World Bank categorizes nations based on per capita income. Rich countries are defined as those with a PCI of at least US$ 12616 per year. iii Poor countries are those with a PCI of less than US$1035. Based on gross national income per capita, the World Bank divides the world's economy into four categories: high, upper-middle, lower-middle, and low-income countries. Subgroups of developing countries include small island developing states, landlocked developing countries, and least developed countries.
Instead of physical features like coastlines, countries are differentiated by their various political systems and governing institutions. Every nation has a distinctive political system of its own.
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