How to Compare Different Countries or States?
How to Compare Different Countries or States?: Overview
This topic explains the basis of comparison between countries or states. It highlights the factors that can be considered while comparing two nations. We will also know that average income of a country is a criterion for comparison by the World Bank.
Important Questions on How to Compare Different Countries or States?
Development of a country can generally be determined by

Write a paragraph on what should India do, or achieve, to become a developed country.

Find out the per capita income level of low-income countries as per World Development Reports.

Suppose records show that the average income in a country has been increasing over a period of time. From this, can we conclude that all sections of the economy have become better? Illustrate your answer with an example.

Besides the size of per capita income, what other property of income is important in comparing two or more societies?

Why do you think average income is an important criterion for development? Explain.

Let us consider two countries, A and B. For the sake of simplicity, we have assumed that they have only five citizens each. Based on data given in Table , calculate the average income for both the countries:
Country | I | II | III | IV | V |
COUNTRY A | |||||
COUNTRY B |

Give three examples where an average is used for comparing situations.

Why do we use averages? Are there any limitations to their use? Illustrate with your own examples related to development.

What is the main criterion used by the World Bank in classifying different countries? What are the limitations of this criterion, if any?
