Question

What is the main criterion used by the World Bank in classifying different countries? What are the limitations of this criterion, if any?

Answer 1

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 !

Answer 2

Answer:per capita income is the main criterion used by the World Bank in classifying different countries. The limitation of this criteria are:

1. It doesn't show distribution of income

2. It also ignores other factors such as infant mortality rate, literacy level, health care etc.

I hope it may help you

Explanation: