Question: State the criterion used by the World Bank as per World Development Report 2012, in classifying the countries. How did the World Bank define low and high income countries (based on this report)? (Board Term-I, KVS-2014)
Answer: (i) The World Bank defined low and high income countries according to per capita income (PCI).
(ii) Countries with per capita income of US $ 12616 per annum and above are called rich countries.
(iii) Countries with per capita income of US $ 1035 or less are called low-income or poor countries.