Question

Which of the following is one of the criteria of the UNDP for measuring development that is also used by the World Bank in classifying different countries?
1. Education
2. GDP
3. Health
4. Per Capita Income

Answer 1

Correct Answer - Option 4 : Per Capita Income

The correct answer is Per Capita Income.

• 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.
• UNDP measures development on the parameters of education, health, and per capita income.
• Human Development Report published by UNDP compares countries based on the educational levels of the people, their health status, and per capita income.
• In World Development Reports, brought out by the World Bank, this criterion is used in classifying countries.
• World Bank classifies them into three categories: rich countries, middle-income countries, and poor countries.
• Countries with a per capita income of US$ 12,056 per annum and above in 2017, are called rich countries.
• Countries with a per capita income of US$ 955 or less are called low-income countries.
• India comes in the category of low-middle-income countries because its per capita income in 2017 was just US$ 1820 per annum.
• The rich countries, excluding countries of the Middle East and certain other small countries, are generally called developed countries.