World Bank classifies the whole globe as a rich or poor country. World bank works on the basis of average income or per capita income of the particular country to be declared as poor or rich. Any country having more than or equal to 45,3000 per annum in the year 2004 is classified as a rich country and less than or equal to 37000 per annum is called a lowincome country or a poor country.
Limitations :
(i) They use per capita income to classify but it hides disparities like two country may have equitable distribution. In other country, it may be possible that most of citizens are poor while very few of them are extremely rich.
(ii) More income can not always ensure a good quality of life. Freedom, equality and equal opportunities are necessary for the same.