CBSE Social Class 10 Economics Understanding Economic Development LAQ

Q.1. Distinguish between developed and underdeveloped countries.

Q.2. What is the main criterion used by the World Bank in classifying different countries ? What are the limitations of this criterion ? [CBSE Sept. 2010]
Or
Explain the meaning of the term ‘Rich Countries’ and ‘Low Income Countries’ according to the World Development Report of 2006. What is India’s position in this respect ? [CBSE 2013]
Ans. The World Development Report, 2012, brought out by the World Bank has given the following criteria in classifying countries :
(I) Rich or High income countries : Countries with the per capita income of US $12276 per annum and above in 2010, are called rich countries.
(ii) Poor or Low income countries: The countries with the per capita income of US $ 1005 or less, are called low income countries.
India comes in the category of low middle income countries because its per capita income in 2010 was just US $ 1340.4 per annum. The rich countries, excluding countries of Middle East and certain other small countries, are generally called the developed countries.
Limitations :
(i) It covers only the economic aspect ignoring peace, health, environment, education, longevity, etc.
(ii) The method does not provide us the distribution of income.

Q.3.Distinguish between human and economic development.