What is the main criterion used by the World Bank in classifying different countries? What are the limitations of this criterion, if any?
The main criterion used by the World Bank for classifying different countries is per capita income. In World Development Reports, countries with per capita income of US 2400 or less are called low-income countries.
However, this criterion has limitations. Income alone does not reveal the complete picture of development. For example, countries like Nepal and Bangladesh have lower per capita income than India, yet they are better in terms of life expectancy. Development is about people, their health, and well-being. Therefore, looking only at income hides these crucial human development aspects.
Explanation
The answer is derived directly from the provided text. The first paragraph establishes the World Bank's classification method based on per capita income thresholds (US 2400 for low income). The second paragraph addresses the limitations by citing the specific example from the text regarding Nepal and Bangladesh having better life expectancy than India despite lower income. It reinforces the text's argument that development involves health and well-being, not just money.