Quick Answer: Which Criterion Is Used By The World Bank For Comparing Countries?

Which criterion is used by World Bank?

per capita incomeAnswer: The main criterion used by the World Bank in classifying different countries is the per capita income or average income of a person in a country..

What is the main criterion used by?

Answer Per Capita Income is the main criterion used by the World Bank in classifying different countries. The limitation of this criterion are: • It doesn’t show distribution of income. It also ignores other factors such as infant mortality rate, literacy level, healthcare, etc.

What is the difference between the development criterion of World Bank and UNDP?

The criteria used by UNDP and world Bank to classify different countries is by using the process of averages but only difference is that world Bank only sees the average per capita income but UNDP sees the overall development.

What classifies a country as developed or developing?

Low- and middle-income economies are usually referred to as developing economies, and the Upper Middle Income and the High Income are referred to as Developed Countries.

Why UNDP report is superior than World Bank report?

The report by the World Bank compares countries based solely on per capita income while the report by the UNDP compares countries based on a host of other factors like per capita income, health status of people, and literacy levels of people.

Why do we use averages to compare the development of countries?

We use averages because they are useful for comparing differing quantities of the same category. For example, to compute the per capita income of a country, averages have to be used because there are differences in the incomes of diverse people. However, there are limitations to the use of averages.

What is the criterion used by UNDP for classifying countries?

The criterion used by World Bank: The average income, i.e. per capita income is the main criterion used by the World Bank in classifying different countries. 2. The UNDP compares countries based on HDI e., on the educational levels of the people, their health status and per capital income or average income.

What is the main norms used by the World Bank in classifying different countries as rich and poor?

per capita incomeThe main norm used by World Bank to classify differen countries into rich and poor is the per capita income or average income of the country. It is determined by dividing the country’s total income by its population.

What are IDA countries?

Countries that graduated from IDA lendingAlbania (2008)Azerbaijan (2011)Botswana (1974)Chile (1961)China (1999)Colombia (1962)Costa Rica (1962)Dominican Republic (1973)More items…

How do you classify a poor country?

Countries with less than $1,035 GNI per capita are classified as low-income countries, those with between $1,036 and $4,085 as lower middle income countries, those with between $4,086 and $12,615 as upper middle income countries, and those with incomes of more than $12,615 as high-income countries.

Who list of low income countries?

List of Low-Income CountriesAfghanistan.Bangladesh.Benin.Burkina Faso.Burundi.Central African Republic.Chad.Comoros.More items…

Is Sri Lanka a 3rd world country?

Sri Lanka is a lower-middle-income country with a GDP per capita of USD 3,852 (2019) and a total population of 21.8 million. … Social indicators rank among the highest in South Asia and compare favorably with those in middle-income countries.

How do you categorize countries?

Based on GNI countries are classified into three main groups. These are high-income (developed) countries, newly emerging economies (emerging) and low-income countries (developing). As of 1 July 2016, low-income economies are defined by the World Bank as those with a GNI per capita of $1,025 or less in 2015.

In what respect is the criterion?

UNDP ( United Nations Development Programme) compares countries on the basis of educational level of people, their health status and per capita income per annum while the criterion used by World Bank is merely that of per capita income or average income for measuring development.

How does World Bank classify countries Class 10?

When it comes to income , the World Bank divides the world’s economies into four income groups: high, upper-middle, lower-middle, and low. … The income classification is based on a measure of national income per person, or GNI per capita, calculated using the Atlas method.