Question

What are the main criterion used by the World Bank in classifying different countries ?what are the limitations of this Criterion.if any ​

Answer 1

Answer:

Per Capita Income is the main criterian used by World Bank in classifying countries.

The limitations of this criterion are:-

1)It does not show distribution of income.

2)It also ignores other factors such as infant mortality rate , literacy level, health care, etc.

Explanation:

Hope it helps you...

Answer 2

Per Capita Income of a Country:

It is obtained by dividing the total income of all the residents of the country by the population of the country.

It gives the average earnings of each member of the country.

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The world bank mainly uses the per Capita income of countries to compare them as developed, developing or under-developed.

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The limitation of this is that it only considers per Capita income of the countries and ignores other factors like education, health etc.

Another limitation is that it doesn't tell any information about the ground level of the country. For example, there is a country which has 5 members and each one earns Rs 5000 /-. So, its per capita is Rs. 5000. Lets consider another country which also has 5 members. On earns Rs. 20,000 and another earns Rs. 5000/- and rest earn nothing. Its per capita income is also Rs. 5000/-. If other factors are also considered, then the first country is more developed than the second one but, if only per capita is considered, then both the countries are at the same level.