One what basis the rich and low income countries have been categorized in the world? What are the limitations of this approach? According to the World Development Report, 2006, India comes in which category? Give reason for the same.
Answers
Explanation:
In World Development Report 2006, brought out by the World Bank, this criterion is used in classifying countries. Countries with per capital income of Rs 4,53,000 per annum and above in 2004, are called rich countries and those with per capital income of Rs 37,000 or less are called low-capital countries. India comes in the category of low-capital countries because its per capital income in 2004 was just Rs 28,000 per annum. The rich countries, excluding countries of Middle East and certain other small countries, are generally called developed countrie
Answer:
The World Bank uses average income or per capita income as a criterion for classifying different countries. Countries with per capita income of ?4,53,000 per annum and above (in the year 2004) are called rich countries and those with per capita income of ?37,000 or less are called low income countries. Those falling in between ₹37,000 – ₹4,53,000 are placed in the middle category
India comes under low income countries; the per capita income in India is 28,000 per annum. Those falling in between ₹37,000 – ₹4,53,000 are placed in the middle category.
Limitations of this criterion.
1.While averages are useful for comparison, they also hide disparities. Two countries may have identical average income, but one country may have equitable distribution where people are neither very rich nor very poor, while in the other country most citizens are very poor and very few are extremely rich,
2.Better income cannot ensure a good quality life. Criterion set by the World Bank has ignored certain attributes of a good life which do not depend on income or cannot be bought with money. Example, freedom, equal treatment, equal opportunities, free atmosphere, provision of unadulterated medicines, etc.