Question

what is the main criterion used by world bank in classifying different countries?what are its limitations?

Answer 1

the world bank uses the criterion of per capita income

Answer 2

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 this Helps !!!