Average income or per capita income is the main domain used by the World Bank in classifying different countries as rich and poor countries. According to the World Bank, income is one of the most important attributes. Countries with average income of USD 12616 per annum and above are called rich countries. Countries with average income of USD 1530 or less are called middle-income countries and countries with average income of USD 1035 or less are called poor countries.
This is based on the conception that the higher the total income of the country, the developed it is. However, there are certain restrictions to this norm because income, although an important measure for calculating growth and development, is not the only attribute. Over the past few decades, health and education have made an important mark in the development of a country. So, even if the country has high per capita income and literacy rate but does not have good medical facilities, it cannot be considered developed.
