World Bank to change classification of countries; India no more a 'developing country'

| Tuesday, May 31, 2016 - 15:20
First Published |
World bank, classification of countries, india, economy, finance, World Development Indicators, developing country, lower-middle, income

India will be known as “lower-middle” income country/South Asia

New Delhi: The World Bank has announced that it is no longer distinguishing between “developed” and “developing” in its latest edition of World Development Indicators (WDI).

The organisation said it will do away with the term “developing” from its publications and databases, as it was becoming less “relevant”. According to this new norm, India won’t be called a ‘developing nation’. It will be known as “lower-middle” income country/South Asia.

Till now, developing referred to low and middle-income countries while high-income countries were called 'developed'. Brazil, China and Mexico belong to “upper-middle income”; India, Pakistan, and Bangladesh are “lower-middle income”.

World Bank stated that India languishes on world indicators like labour force participation rate, electricity generation and access to improved sanitation facilities. Time required to start a business in India was 29 days in June 2015 against the global average of 20 days, it said.

After this decision, other organisations are also likely to follow the same.

Currently, under the UN's classification, all of Europe, Northern America, Japan, Australia and New Zealand are classified as developed regions and all other regions are developing.

The International Monetary Fund (IMF) currently classifies 37 countries as “Advanced Economies” – and the rest as “Emerging Market and Developing Economies”.

The UNDP’s Human Development Index classifies countries into “Very High”, “High”, “Medium” and “Low” based on indicators related to income, education and health.

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