Question

what the main Criterion used by the World Bank in classifying different countries what are the limitations of the above 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

World Bank uses per capita income for classifying different countries. Limitations of this criterion are as follows

It does not see the public facilities like , peace of a country, literacy rate and health facilities. It is not necessary that a country having high per capita income will be wealthy and healthy and it is no necessary that each person living in that country is rich and literate..