On what basis the rich and low income countries have been categorized in the world What are the limitations - Social Science - Development

Question

On what basis the rich and low income
countries have been categorized in the world? What are the
limitations to this approach? 3 MARKS QUESTION

Akankshya Mishra · Accepted Answer

Dear Student
Answer to your question is as follows :

Under the World Development Report 2006, the rich and low-income
countries have been categorised on the following basis:
i Countries with per capita income of Rs 4,53,000 per annum and
above will be classified as rich countries
ii Countries with per capita income of Rs 37,000 or less will be
classified as low-income countries

India will be categorised in low-income countries as per 2004 data
its per capita income was just Rs 28,000 per annum
It does not tell us about how this average income is distributed
among the people in the individual countries Two countries with the
same per capita income might be very different concerning income
distribution One might have an equitable distribution of income
while the other might have great disparities between the rich and
the poor It also doesn't give enough details about how the poor are
exploited It gets influenced by the population which deters from
giving an accurate comparison

Regards

. On what basis the rich and low income countries have been categorized in the world? What are the limitations to this approach? 3 MARKS QUESTION