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What is the main criterion used by the world bank in classifying different countries? write its limitations?

Posted by Shivansh Handa 6 years, 7 months ago

CBSE > Class 10 > Social Science

1 answers

Sia ? 6 years, 7 months ago

Following are the points which are used by world bank in classifying different countries:

The countries with per capita income of US$ 1045 or less are called low income countries.
According to world development report, the countries with per capita income of US$ 12, 736 per annum and above in 2013, are called rich countries.

Limitations of this criterion are given below:

Some may be very rich but the masses maybe poor. That is, it hides disparities.
It doesn't tell us how the income is distributed among people.

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