Question

what is the main Criterion used by the World Bank in classifying different countries what are the limitation of this criterion

Answer 1

The criterion used is per capita income. 

Limitations

(a) It covers only the economic aspect ignoring factors like infant mortality rate, literacy rate, no attendance ratio for class I-V, etc which are important indicators for development.

(b) This method also does not provide us the distribution different levels of income.

Answer 2

The World Development Report, 2012, brought out by the World Bank has given the following criterion in classifying countries-
Rich or High income countries- Countries with the per capita income of US $1216 per annum and above in 2012, are called rich countries.
Poor or Low income countries- The countries with the per capita income of US $1035 or less, are called low income countries.
India comes in the category of low middle income countries because its per capita income in 2012 was just US $1530 per annum. The rich countries, excluding countries of Middle east and other small countries, are generally called the developed countries.
Limitations-
1. It covers only the economic aspect ignoring peace, health, environment, education, longevity ,etc.
2.This method does not give information regarding the distribution of income.
Hope it helps you !