What is the main criterion used by the world bank in classifying different countries?Whatvare the limitations of this criterion if any?
Answers
The world Bank uses per capita income as the main criteria .
As per world development report 2014 countries with per capita income of dollar 12,616 per annum above in 2012 are called right or high income countries
and dollar 1,035 per annum or less are called low income countries. LIMITATION
per capita income is useful for comparison but it does not tell us how this income is distributed among the people
The World Banks uses Per Capita Income for classification of different countries. But it has a great disadvantage that this criterion does not show about the living standard and condition of living of the common average people of the country. Like, if a country like Dubai has a high per capita income but the living standard of people there is not be considered as good as related to its income.