Criteria used by World Bank in the classification of countries:

The World Bank classifies countries based on their Gross National Income (GNI) per capita. GNI is the total income of a country's residents, including income from abroad, while per capita means per person. The classification is primarily used to determine eligibility for financial assistance and loans from the World Bank.

Demerits of this criteria:

1. Does not capture economic inequality: GNI per capita is an average measure that does not reflect the distribution of income within a country. It fails to account for disparities in wealth and income inequality. A country with a high GNI per capita may still have a large proportion of its population living in poverty.

2. Does not consider other socio-economic factors: The classification based solely on GNI per capita overlooks other crucial factors such as education, healthcare, infrastructure, and social development. These factors are essential for understanding a country's overall well-being and development.

3. Not updated frequently: The World Bank updates its classification every year, but changes in a country's economic situation may occur more rapidly. This infrequent updating can lead to outdated classifications that do not reflect the current economic conditions of a country accurately.

4. Reliance on income figures: GNI per capita is calculated based on income figures reported by governments, which may not always be accurate or reliable. In some cases, governments may manipulate or misreport income data to appear more economically prosperous.

5. Does not consider non-monetary aspects: The classification based on GNI per capita does not take into account non-monetary aspects of development, such as human rights, political stability, environmental sustainability, and quality of life. These factors are important in assessing a country's overall well-being and progress.

6. Does not account for regional disparities: The classification does not consider regional disparities within a country. A country with a high GNI per capita may have significant disparities between urban and rural areas, leading to unequal development and opportunities.

7. Limited focus on economic growth: The classification primarily focuses on economic growth and does not adequately consider sustainability or the long-term implications of development. It does not consider the environmental impact or the sustainability of a country's economic practices.

In conclusion, while the World Bank's classification based on GNI per capita provides a broad measure of a country's economic standing, it has several limitations. It fails to capture economic inequality, overlooks other socio-economic factors, is not frequently updated, relies on potentially unreliable income figures, does not consider non-monetary aspects, does not account for regional disparities, and has a limited focus on economic growth. To have a more comprehensive understanding of a country's development, it is crucial to consider a wider range of indicators beyond just GNI per capita.