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What is the main criterion use by the World Bank in classifying different countries? What are the limitations of this criterion? In what respects is the criterion different from the one used by the UNDP?
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What is the main criterion use by the World Bank in classifying differ...
Per Capita Income is the main criterion used by the World Bank in classifying different countries. The limitation of thiscriterion are: → It doesn't show the distribution of income. → It also ignoresother factors such as infant mortality rate, literacy level, healthcare, etc....
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What is the main criterion use by the World Bank in classifying differ...
World Bank's criterion for classifying countries

The World Bank classifies countries based on their income level. It uses Gross National Income (GNI) per capita as the main criterion for classification. According to the World Bank, low-income economies are those with a GNI per capita of $1,025 or less, while high-income economies are those with a GNI per capita of $12,746 or more. Middle-income economies are those with a GNI per capita between these two thresholds.

Limitations of World Bank's criterion

The World Bank's criterion has several limitations. Firstly, it only considers income level and does not take into account other important factors such as human development, education, and health. Secondly, it does not consider the distribution of income within a country. A country with a high average income may still have a large population living in poverty. Finally, the criterion does not account for differences in the cost of living between countries.

Differences between World Bank's criterion and UNDP's criterion

The United Nations Development Programme (UNDP) uses the Human Development Index (HDI) as the main criterion for classifying countries. The HDI takes into account three factors: life expectancy, education, and income. Unlike the World Bank's criterion, the HDI considers factors other than income level and provides a more comprehensive picture of a country's development.

Another difference between the two criteria is that the HDI measures achievements in human development rather than just income level. The HDI takes into account the quality of life and well-being of a country's citizens, which is an important aspect of development that is not captured by the World Bank's criterion.

In conclusion, while the World Bank's criterion for classifying countries based on income level has its limitations, it is still a useful tool for understanding a country's economic development. However, it is important to also consider other factors such as human development when assessing a country's overall level of development.
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Read the source given below and answer the questions that follows:For comparing countries, their income is considered to be one of the most important attributes. Countries with higher income are more developed than others with less income. This is based on the understanding that more income means more of all things that human beings need. Whatever people like, and should have, they will be able to get with greater income. So, greater income itself is considered to be one important goal. The income of the country is the income of all the residents of the country. This give us the total income of the country. However, for comparison between countries, total income is not such a useful measure. Since, countries have different populations, comparing total income will not tell us what an average person is likely to earn. Are people in one country better off than others in a different country? Hence, we compare the average income which is the total income of the country divided by its total population.The average income is also called per capita income.In World Development Reports, brought out by the World Bank, this criterion is used in classifying countries. Countries with per capita income of US$ 12,056 per annum and above in 2017, are called rich countries and those with per capita income of US$ 955 or less are called low-income countries. India comes in the category of low middle income countries because its per capita income in 2017 was just US$ 1820 per annum. The rich countries, excluding countries of Middle East and certain other small countries, are generally called developed countries.Human Development Report published by UNDP compares countries based on the educational levels of the people, their health status and per capita income.Q. What is the main criterion used by the World Bank in classifying different countries?

Read the source given below and answer the questions that follows:For comparing countries, their income is considered to be one of the most important attributes. Countries with higher income are more developed than others with less income. This is based on the understanding that more income means more of all things that human beings need. Whatever people like, and should have, they will be able to get with greater income. So, greater income itself is considered to be one important goal. The income of the country is the income of all the residents of the country. This give us the total income of the country. However, for comparison between countries, total income is not such a useful measure. Since, countries have different populations, comparing total income will not tell us what an average person is likely to earn. Are people in one country better off than others in a different country? Hence, we compare the average income which is the total income of the country divided by its total population.The average income is also called per capita income.In World Development Reports, brought out by the World Bank, this criterion is used in classifying countries. Countries with per capita income of US$ 12,056 per annum and above in 2017, are called rich countries and those with per capita income of US$ 955 or less are called low-income countries. India comes in the category of low middle income countries because its per capita income in 2017 was just US$ 1820 per annum. The rich countries, excluding countries of Middle East and certain other small countries, are generally called developed countries.Human Development Report published by UNDP compares countries based on the educational levels of the people, their health status and per capita income.Q. Per capita income is also called as

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What is the main criterion use by the World Bank in classifying different countries? What are the limitations of this criterion? In what respects is the criterion different from the one used by the UNDP?
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