The main criterion used by the World Bank in classifying different countries Per Capita Income.
The limitations of this criterion are mentioned below:
Per capita income can be a useful tool for comparison but it is not accurate enough to show the distribution of income.
It also doesn’t account for various other factors such as infant mortality rate, literacy level, healthcare, etc.
Since the population is large, per capita income does not reveal true numbers as the population which does not earn at all like children and the senior citizens are also included while calculating per capita income. National income rises but its distribution makes the rich richer and the poor poorer.
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