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 How to Compare Different Countries or States

If development can mean different things, how can some countries be called developed and others underdeveloped?
We must remember many things when we want to classify countries as developed or under developed or developing countries.

They could have similarities as well as differences.

The income of the people should be considered to be one of the most important attributes.
Countries have different populations, so we must compare the average income of the country which is got by dividing the total income of the country by its total population, etc.


However, for comparison between countries, total income is not such a useful measure. Comparing the total income may not tell us what an average person is likely to earn, since people in one country may be better off than others in a different country. Hence, per capita income is the average income. This criterion is used in classifying countries, in the World Development Report 2006, brought out by the World Bank. Rich countries are countries with per capita income of Rs 4,53,000 per annum and above in 2004, and low-income countries are those with per capita income of Rs 37,000 or less. India comes in the category of low-income countries because its per capita income in 2004 was just Rs 28,000 per annum. Excluding countries of the Middle East and certain other small countries, the rich countries are generally called the developed countries.

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