BEWARE OF FAKE INSTITUTES WITH SIMILAR NAMES. blank    blank
banner

WORLD BANK COUNTRY CLASSIFICATIONS



  Jul 10, 2024

WORLD BANK COUNTRY CLASSIFICATIONS



1. Q: What are the World Bank's main income group classifications for countries?
A: The World Bank classifies countries into four main income groups: Low-income economies, Lower-middle-income economies, Upper-middle-income economies, and High-income economies.

2. Q: How does the World Bank determine these classifications?
A: The World Bank uses Gross National Income (GNI) per capita as the main criterion for classifying economies. GNI can be broadly equated with GDP. The classifications are updated each year on July 1st using the previous year's GNI per capita data.

3. Q: What are the current income thresholds for each group?
A: As of July 1, 2023, the thresholds are:
- Low-income: $1,135 or less
- Lower-middle-income: $1,136 to $4,465
- Upper-middle-income: $4,466 to $13,845
- High-income: $13,846 or more

4. Q: How often are these thresholds updated?
A: The income thresholds are adjusted annually for inflation using the Special Drawing Rights (SDR) deflator.

5. Q: What is India's current classification?
A: As of 2023, India is classified as a Lower-middle-income economy.

6. Q: How do these classifications affect a country's relationship with the World Bank?
A: These classifications are used to determine lending eligibility from the World Bank. For instance, IDA (International Development Association) loans are primarily available to low-income countries.

7. Q: Can countries move between classifications?
A: Yes, countries can move up or down classifications based on their economic performance. However, to reduce classification changes due to short-term fluctuations, the World Bank uses a three-year average of GNI per capita for the classification.

8. Q: Are there any other factors considered besides GNI per capita?
A: While GNI per capita is the primary criterion, the World Bank also considers other factors like a country's creditworthiness, political risks, and debt sustainability in its overall assessment and engagement with countries.

9. Q: How many countries are in each classification?
A: The number changes each year, but as of 2023, there were 27 low-income economies, 55 lower-middle-income economies, 55 upper-middle-income economies, and 80 high-income economies.

10. Q: Does this classification system have any limitations?
A: Yes, while it's a useful tool, it doesn't capture all aspects of development. It doesn't account for inequalities within countries, non-monetary dimensions of wellbeing, or environmental sustainability.​​​​​​​​​​​​​​​​




SRIRAM's



Share:
 

Get a call back

Fill the below form to get free counselling for UPSC Civil Services exam preparation

 
UPSC DAILY CURRENT AFFAIRS

 
SILK ROUTE THROUGH KALIMPONG AND SIKKIM
 
RHODODENDRON NIVEUM, THE STATE TREE OF SIKKIM
 
OPERATION DHANUSH NEAR LOC
 
French Revolution and India
 
RBI’S MONETARY POLICY STANCE
 
French Revolution and India
 
MUSLIM WOMEN UNDER SECTION 125 OF CRPC:
 
BASTILLE DAY
 
INDIA-BASED NEUTRINO OBSERVATORY (INO)
 
India's Critical Minerals Strategy
 
Conflict in Sudan:
 
ASIAN PROTECTIONISM:RESPONSE TO CHINESE OVERCAPACITY
 
IVF Treatments in India
 
Indian quantum cryptography discovery
 
Climate Change : Loss and damage fund