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