Question

'per capita income of a country does not reflect the real development of that country' do you agree? give any one reason?
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Answer 1

Yes. PCI doesn't tell us the distribution of income among the people.

Answer 2

Yes it is true true that this Per Capita Income is not the only thing that refers to the development of a particular country, it cannot be used as a factor to calculate the development of a country.

The UNDP uses various other factors such as literacy rate, Gross Enrollment Ratio, Per capita income, Net Attendance Ratio, etc.....

If the Per Capita Income of a country is below $1045 per annum then that particular country will be called as low-income country and if the Per capita income of a country is $12736 per annum and above is considered as rich countries.

Hence, Per capita income plays a vital role in the calculation of Development but other factors must also be included because development of a country depends on a lot of things.