Question

In what respect is the criterion used by the UNDP for measuring development of the
countries, different from the one used by the World Bank?

Answer 1

Answer:-

World Bank

(a) Per capita income is the base for comparison.

(b) It is a narrow concept of development.

(c) Countries have been divided into three categories, i.e., the rich countries, the middle income countries and the poor countries.

UNDP

(a) UNDP has taken education, health and the per capita income as the base.

(b) It is a broader concept of development,

(c) Countries have been ranked.

Answer 2

World bank only uses per capita income for measuring development while UNDP uses many other factors like infant mortality, healthcare facility education level which help in improving the quality of life and helps in making the citizens more productive. As per HDI- 2014, India's rank is 135. On the other hand, the World Bank uses per capita income as the only criterion for measuring development and classifying the countries as rich and poor. Per capita income is useful for comparison, it does not tell us how income is distributed.