Question

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What is the main criterion used by the word bank in classifying doffrent countries? what are the limitations of this crieterion , if any?​

Answer 1

Answer:

Per Capita Income is the main criterion used by the World Bank in classifying different countries. The limitation of this criterion are: i) It doesn't show distribution of income. ii) It also ignores other factors such as infant mortality rate, literacy level, healthcare, etc.

Answer 2

Explanation with Ans.

1) Criterion used by World bank:

[☀️For classifying countries in terms of development]

• According to World bank reports, Country with per capita income of US$ 12236 per annum and above( as per 2016) are richer and developed countries.
• Those countries with per capita income less than US$ 1005 or less than that are low-income countries or less developed countries.

Here, Per capita income is calculated by:

$\large{ \boxed{ \sf{Per \: capita \: income = \frac{Total \: national \: income}{Total \: population} }}}$

Position of India Then?!

• India comes under the category of Lower middle income countries because as per the survey and report 2016, per capita income of India was US$ 1840 per annum.

⚠️ Do you know? The rich countries(Middle east counrties) being less developed than India are considered to be developed, but India is said to be a developing country.

2) Limitations of the above system:

• The first and foremost thing, Per Capita Income is not the only criteria for terming any country in terms of Development.
• The Development of any country also depends on Medical Facilities, Infant Mortality Rate, Literacy Rate etc. India has improved al lot in all these factors.
• The total national income increases when income of Individual billionaires are added and from this, we can't understand the development.
• Their is a huge gap between the rich and poor people's income, But as the average income is more, we can't say that it is more developed.

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