Question

What is the main criteria used by world bank in classifying countries as rich and poor?

Answer 1

Answer:

per capita income is the main criteris

Answer 2

Usually,per capita income or average income of people in different countries is the main parameter or yardstick used by World Bank to classify them as rich or poor.

Explanation:

• World Bank usually use per capital income or average income as the main criteria to categorize countries as rich or poor.
• It sets a minimum yardstick for classifying or categorizing respective countries as rich or poor on the basis of their per capital income or average income level.
• Usually,any country with an annual per capita or average income of over US$12,616 is considered to be rich,countries registering an annual per capita or average income of US$ 1530 or less are considered as middle income countries and countries with annual per capita or average income of US$1035 or less are classified as poor countries under the World Bank estimation.