Question

(iv) Rs 6000
4. What is the main criterion used by the World Bank in classifying different
countries? What are the limitations of this criterion, if any?
In what respects is the criterion used by the UNDP for measuring development​

Answer 1

Answer:

The main criterion used by the World Bank in classifying different countries is the per capita income or average income of a person in a country. Limitations of this criterion: It does not tell us about how this average income is distributed among the people in the individual countries.

Answer 2

Per Capita Income is the main criterion used by the World Bank in classifying different countries. The limitation of this criterion are:

Per capita income is useful for comparison but it doesn't show the distribution of income.

It also ignores other factors such as infant mortality rate, literacy level, healthcare, etc.

Per capita income does not give the true picture as there is a huge population which does not earn at all like children and the senior citizens but they are also included while calculating per capita income. National income rises but its distribution make the rich richer and the poor poorer.

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.