Question

How has the world development report classified different countries? What are the limitations of this report?

Answer 1

(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.