Question: What is the main criterion used by the World Bank in classifying different countries? Describe its limitations. (Board Term-I, (Set-OEQL2HT), 2016-17)
Answer: The average income, i.e., per capita income is the main criterion used by the World Bank in classifying different countries Limitations
(a) It covers only the economic aspect ignoring factors like infant mortality rate, literacy rate, no attendance ratio for class I-V, etc., which are important indicators for development.
(b) This method also does not provide us the distribution different levels of income.