Question

UNDP. in what way is the criterion used by UNDP is different from the one used by the world bank.

Answer 1

UNDP uses HDI as the main criterion for measuring development. This criterion takes into consideration other development indicators like life expectancy, besides per capita income, whereas world bank compares the different countries only on the basis of the income criterion.

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Answer 2

World bank only uses per capita income for measuring development while 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. As per HDI- 2014, India's rank is 135. On the other hand, the World Bank uses per capita income as the only criterion for measuring development and classifying the countries as rich and poor. Per capita income is useful for comparison, it does not tell us how income is distributed.