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What is the main criterion used by the world Bank in classifying different countries? What are the limitations of this criterion, of any?

Posted by Ganga Rajesh 5 years, 7 months ago

CBSE > Class 10 > Social Science

2 answers

Riya Philip 5 years, 7 months ago

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Samraat Sahil Verma 5 years, 7 months ago

• World bank compares the countries on the basis of Per Capita Income •In World development report brought out by World Bank give criteria to classify countries. •Rich country --> per capita income US $12735 per annum and above. •Low income countries-->per capita income US $1045 per annum or less. •Low middle Income countries-->Per Capita income US $1570 per annum.(•India comes under this category) #LIMITATIONS OF AVERAGE INCOME •Average income are useful for comparison but they also hide disparities •It does not tell us how the income is distributed among the people

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