Question

The World Bank classifies countries as being low-income, middle-income, or high-income.

1. explain the low income, middle income and high income

2. explain why More than 80% of the world’s people live in low- and middle-income countries.

Answer 1

1.The World Bank classifies countries according to low income, middle income and high income based on the GNI per capita that is calculated by the World Bank's Atlas method. The low income countries are those with a GNI per capita with $$1005$ or less, the middle income countries belongs to the GNI per capita between $$1006$ and $3995$ and the high income countries belongs to the GNI per capita of $$12,236$ or more. The low income, middle income and high income is based on the standard of living of the people, the high income economies should have the highest overall standard of living, the middle income economies have the average of the standard of living for the world as whole and the low income countries have a relatively a low standard of living.

2. The low and middle income countries the people are mostly illiterate so comes to the population growth, the people don't have much knowledge about the birth control techniques. Also the people have thought in the mind that more children in today, more the income tomorrow so this induce them to give birth to more children. The low income and middle income countries are characterisezed by poverty so there will be a high death and birth rate, the success of surving a born children is very less so obviously the parents tend to have more children.