Question

what is the main Criterion used by the World Bank in classifying different countries what are the limitation of the above Criterion if any

Answer 1

The main criteria used by World Bank is the Income Rate. Its disadvantage is that it doesn't show how the income is distributed among the population. It may be possible that a small section of society earns a huge amount of money. Hence it is not the best criteria for judging the development of a country.

Answer 2

Explanation:

Per Capita income of the country is the main criterion used by the World Bank in classifying different countries.

The two main limitations of this criterion are –

a. It takes into the account only the economic aspects and ignores some crucial factors such as – literacy rate, infant mortality rate, etc. which are among the most important indicators of the development.

b. This method is unable to provide the distribution of different levels of income.