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बेसिक इंग्लिश का दूसरा सत्र (कक्षा प्रारंभ : 22 अक्तूबर, शाम 3:30 से 5:30)
For World Bank India is Not a Developing Country
Jun 10, 2016

The World Bank has dropped the use of developing nation tag for India in its specialized reports and instead classifies it as a lower-middle-income economy in South Asia.

World Bank Classification of the Countries

World Bank Classification of the Countries

Reasons behind it?

  • In World Development Indicators publication, the World Bank have stopped grouping low-and middle-income countries together as 'developing countries'. For analytical purposes, India continues to be classified as lower-middle-income economy.

  • The World Bank has not changed term 'developing countries' or 'developing world' in its general work but when it comes to presenting specialized data, it will use more precise groupings of countries. The term developing country was no more useful for analytical purposes.

  • Accordingly, while India will be referred to as a lower-middle-income economy in all of World Bank's analytical reports, it may be referred to as a developing country only in some of the generic communications.

  • The decision to stop using the term developing countries has been taken in view of the word having no universal definition, causing countries like Malaysia and Malawi to be come under the same category earlier.

  • There is no internationally agreed definition of the term 'developing world'. 

  • As per the classification, Afghanistan, Bangladesh and Nepal are low-income economies.

  • Pakistan and Sri Lanka fall under lower-middle-income.

  • Brazil, South Africa and China under upper middle income.

  • Russia and Singapore under high-income-Non-OECD and the US under high income-OECD.

An Example

  • There's often a big gap between the countries within the developing world grouping—which make, for instance, Malaysia and Malawi both developing countries. Malaysia has a gross domestic product of $338.1 billion, according to the 2014 figures, while Malawi's stands at a merely $4.258 billion. Now while Malaysia is referred to as upper middle-income economy, Malawi falls in a low-income classification.

The World Bank

Since inception in 1944, the World Bank has expanded from a single institution to a closely associated group of five development institutions. The World Bank Group is headquartered in Washington, D.C. and have more than 10,000 employees in more than 120 offices worldwide.

  • World Bank provides low-interest loans, zero to low-interest credits, and grants to developing countries. 

  • These support a wide array of investments in such areas as education, health, public administration, infrastructure, financial and private sector development, agriculture, and environmental and natural resource management.

  • Some of its projects are co-financed with governments, other multilateral institutions, commercial banks, export credit agencies, and private sector investors.

  • The World Bank also provide or facilitate financing through trust fund partnerships with bilateral and multilateral donors. 

  • The World Bank offers support to developing countries through policy advice, research and analysis, and technical assistance. 

  • The World Bank supports capacity development in the member countries. 

  • It also sponsor, host, or participate in many conferences and forums on issues of development, often in collaboration with partners.

  • To ensure that countries can access the best global expertise and help generate cutting-edge knowledge, the Bank is constantly seeking to improve the way it shares its knowledge and engages with clients.

 


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