Answer:
World
Bank publishes World Development Report every year measuring development in
different countries. It uses the criteria of per capita income and distinguish
countries as rich country, middle income group and lower income group according
to the limit of per capita income of the countries. In 2004 it decided ` 4,53,000 is the
minimum limit of per capita annual income to become a rich country and ` 37,000 as the
maximum per capita annual income for lower income countries.
But the report excludes some smaller countries and many Middle-East
Countries from the rich countries even though their per capita annual income is
above the limit. It is because inequality and lower standard of living.
It is seen that per capita income cannot reflect the
penetration of development or distribution of income in the society. So, UNDP has
a set of improved parameters to compare countries. UNDP uses quantity of
development as well as quality of development to find out real development.
For quantitative measure it uses per capita income and for
developing countries and for under developed countries it uses adjusted per
capita income or purchasing power parity. For qualitative measure it uses
standard of living i.e. life expectancy, level of education i.e. literacy rate,
gross enrolment ratio. Taking all these aspects into consideration UNDP
publishes Human Development Report (HDR) every year.
You need to login to perform this action.
You will be redirected in
3 sec