Question

ᴡʜᴀᴛ ɪs ᴛʜᴇ ᴄʀɪᴛᴇʀɪᴏɴ ᴜsᴇᴅ ʙʏ ᴛʜᴇ ᴡᴏʀʟᴅ Bᴀɴᴋ ɪɴ ᴄʟᴀssɪғʏɪɴɢ ᴅɪғғᴇʀᴇɴᴛ ᴄᴏᴜɴᴛʀɪᴇs ?ᴡʜᴀᴛ ᴀʀᴇ ᴛʜᴇ ʟɪᴍɪᴛᴀᴛɪᴏɴs ᴏғ ᴛʜɪs ᴄʀɪᴛᴇʀɪᴀ?​

Answer 1

PER CAPiTA iNCOME

• Per Capita Income is the main criterion used by the World Bank in classifying different countries.

The limitation of this criterion are :-

→ It doesn't show the distribution of income.

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

Answer 2

The average income, i.e. per capita income is the main criterion used by the World Bank in classifying different countries. 2. The UNDP compares countries based on HDI e., on the educational levels of the people, their health status and per capital income or average income.

It does not tell us about how this average income is distributed among the people in the individual countries.