How has the World Development Report classified countries? What are the limitations of this report? (Board Term-I, (501), 2013, (62), 2012)

Question: How has the World Development Report classified countries? What are the limitations of this report? (Board Term-I, (501), 2013, (62), 2012)

Answer: (i) World Bank classifies countries according to the Per Capita Income.

(ii) Countries with PCI of more than US $ 12616 per annum and above are called rich countries.

(iii) Countries with PCI less than US $ 1035 are called poor countries.

(iv) Countries with income between US $ 1530 per annum are called low middle income countries.

The limitations of this report are:

(i) It considers only income and not other aspects such as literacy, health, life expectancy, etc.

(ii) World Development Report (WDR) only tells about income and not how it is distributed among the citizens.