World Bank Classification Criteria

The World Bank classifies countries based on their income level and region. This classification helps in determining which countries are eligible for different types of financial assistance and support.

Income Level
- The World Bank uses a country's Gross National Income (GNI) per capita as the primary criterion for classifying countries into different income groups.
- Countries are categorized into four income groups: low-income, lower-middle-income, upper-middle-income, and high-income.
- The income thresholds are updated annually to reflect changes in the global economy.

Region
- In addition to income level, the World Bank also considers a country's geographical region when classifying countries.
- Countries are grouped into regions such as Sub-Saharan Africa, East Asia, Latin America, etc.
- Regional classification helps the World Bank target its development projects and programs to specific regions based on their unique challenges and needs.

Importance
- The classification of countries by the World Bank is crucial for determining eligibility for financial assistance, policy advice, and technical support.
- It helps allocate resources effectively and efficiently to countries that need them the most.
- The classification also provides a basis for comparing and analyzing development outcomes across countries and regions.