what is the main Criterion used by the World Bank in classifying different countries what are the limitation of this Criterion, if any ?
Answers
Answer:
The main criterion used by the world bank to classify different countries as developed or underdeveloped is the average income of the country. It divides the countries into high income countries, middle-income countries and low-income countries. The limitation to this criteria is that it does not show the distribution of income among the people in a particular country. It also hides disparities. It does the consirder the health of the country.
Answer:
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.