. What is the main criterion used by the World Bank
in classifying different countries? What are the limitations of this criterion, if any?
- The World Bank was established after the Second World War in the Year 1944 to aid the economic development of the World.
- The World Bank provides loans and grants to the countries.
- The headquarters of the World Bank is located in Washington D.C., in the United States of America.
- The World Bank uses the per capita income criterion to classify the different counties in the World.
- However, the limitation of this criteria is that the per capita income does not state how the wealth is distributed in the country. The per capita income does not highlight the income inequalities prevalent in a particular country.
The World Bank classifies different countries based on their per capita income. However, this criterion does not highlight the wealth distribution in a country.