Question

why is the main criteria used by the World Bank in classifying different countries what are the limitations of the criterion

Answer 1

Per Capita Income is the main criterion used by the World Bank in classifying different countries. Economists agree that income is not the only factor to improve the quality of life. There are many other factors which affect the development, e.g. infant mortality rate, literacy level, healthcare, etc. Hence, it can be said that the criterion used by the World Bank has its own limitations.

Answer 2

Criterion used by the world bank is per capita income
Since it mentions that
Countries having per capita income more than US $ 1765 is considered rich country .
Countries with per capita income less than US $ 1035 is considered poor country .
Limitation are
It is easy to differentiate between countries .
Easy to calculate.
Also seeks other aspects such as standard of living , health status etc.

Hope this helps
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