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Question -

What is the main criterion used by the World Bank in classifying different countries?



Answer -

What are the limitations of this criterion, if any?


Answer
 World Bank uses the per capita income to classify different countries. The per capita income is calculated by dividing the total income of the country by the population of the country. For the year 2017, the countries with per capita income of US $12,056 per annum were declared rich countries and the countries with per capita income of US $ 955 or less are called low-income countries.
The limitations of the criterion are:
1. Other important factors, including literacy rate, infant mortality rate, healthcare, are ignored while classifying the countries.
2. Information about the unequal distribution of income is not mentioned by The World Bank
3. The economy of the country cannot determine the development of the country.

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