What is the main criterion used by the world bank in classifying different countries what are the limitations of different criterion if any how it is different from undp criterion?
Answers
limitations
it hides disparities
difference
it does not give a clear image about the human development
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.
World bank only uses per capita income for measuring development while UNDP uses many other factors like infant mortality, healthcare facility education level which help in improving the quality of life and helps in making the citizens more productive. As per HDI- 2014, India's rank is 135. On the other hand, the World Bank uses per capita income as the only criterion for measuring development and classifying the countries as rich and poor. Per capita income is useful for comparison, it does not tell us how income is distributed.