Question

what is the main criterion used by the world bank in classifying different countries?what are the limitations of the above criteria,if any?
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Answer 1

Answer:

In the World Development Report issued by the World Bank, the main criteria used for classifying countries is their per-capita income.                                         Countries with per-capita income more than US$12236 are called rich countries. While countries with per-capita income less than US$1005 or less are called low income countries.

Limitations-

1)per capita income hides disparities in the country

2)the criteria hides unequal distribution of income among people

3)factors like literacy rates,health standards etc. are ignored, which play important role in defining quality of life.

Explanation:

Answer 2

Per Capita Income is the main criterion used by the World Bank in classifying different countries. The limitation of this criterion are:

Per capita income is useful for comparison but it doesn't show the distribution of income.

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

Per capita income does not give the true picture as there is a huge population which does not earn at all like children and the senior citizens but they are also included while calculating per capita income. National income rises but its distribution make the rich richer and the poor poorer.