Differences in economic development between countries

Need to know

What you need to know

• The World Bank classifies countries into LICs, MICs, and HICs based on GNI per capita.
• GNI per capita is a measure of average income but does not show income distribution.
• Development is a multidimensional concept, better captured by indicators like the HDI.
• Income classification thresholds are adjusted annually by the World Bank.

Explanation

Differences in economic development between countries

1. The World Bank classifies countries into LICs, MICs, and HICs based on GNI per capita.
2. GNI per capita is a measure of average income but does not show income distribution.
3. Development is a multidimensional concept, better captured by indicators like the HDI.
4. Income classification thresholds are adjusted annually by the World Bank.