The criterion which is used by the World Bank to classify different countries is on the basis of development and its per capita income, this bank categorize the country. As it is that per capita income is the total income of the country divided by its total population, this income indicates the country’s income irrespective of its population and helps in comparison of different size of countries.

Limitations of this criterion are:

Per capita income is an average, it does not tell us how the income is distributed among the people of the country.

It pressurizes too much on income as a measure of development leaving different variables like health and education that can provide us proper structure of the development.