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What main criterion is used by the world bank in classifying different countries? What are the limitations of the above criterion, if any?



Per Capita Income is the main criterion used by the World Bank in classifying different countries. Economists agree that income is not the only factor to improve the quality of life. There are many other factors which affect the development, e.g. infant mortality rate, literacy level, healthcare, etc. Hence, it can be said that the criterion used by the World Bank has its own limitations.
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