how has World Bank classified the countries of world?
World Bank uses the per capita income of the country as the principal criterion for classifying the countries as rich or poor. Per capita income is the average income of the people of a country in a given year.
However, there are some limitations to it. These are:
1. World Bank does not give equal importance to other factors like literacy rates and general health standards of the people which play an important role in defining the quality of life.
2. The per capita income does not reflect information about the unequal distribution of income among the people.