What is the main criterion used by the World Bank in classifing different countries?what are the limitations to this criterion,if any?
Answers
Development is a multidimensional phenomenon. A single intervention has its limitations, especially when so much needs to be done. While it is important to understand the various linkages and interconnections between development challenges, one has to demarcate what an intervention can and cannot do. A polio-eradication intervention, for example, may help limit the disease but may not completely eliminate it. Elimination may require an inclusive, multi-sectoral approach including the provision of better sanitation, preventive education etc.
Similarly, while benefiting the intended population, the intervention may also throw up a new set of problems and challenges. For example, improvements in household sanitation require people to store water in overhead tanks. But, these can in turn lead to the spread of mosquito-borne diseases such as malaria and dengue. Therefore, while sanitation improves, the risk of malaria may go up. So the linkages and the limitations of development intervention need to be kept in mind.
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.