Question

What is the main criterion used by the world bank in it's development report in classifying different countries ? what are limitations of such criterion

Answer 1

Answer:

Explanation:

The criteria that the world bank uses is per capita income of the country

The limitation is that it gives us an idea about what an average person is likely to earn but does not tell us how the income is distributed

Answer 2

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.