what is the main criterion used by the world bank in classifying different countries describe its limitations
Answers
The main Criterion used by the World Bank in classifying different countries as per capita income average income countries with high capita income are categorised as developed countries on the countries having low capita income are categorised as developing countries the limitation for this is: the countries having high population will have a low capita income like India countries having low population will have high capita 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.