The World Development Report, 2012, brought out by the World Bank has given the following criteria in classifying countries :- (i) Rich or High income countries : Countries with the per capita income of US $12276 per annum and above in 2010, are called rich countries. (ii) Poor or Low income countries: The countries with the per capita income of US $ 1005 or less, are called low income countries. India comes in the category of low middle income countries because its per capita income in 2010 was just US $ 1340.4 per annum. The rich countries, excluding countries of Middle East and certain other small countries, are generally called the developed countries. Limitations : (i) It covers only the economic aspect ignoring peace, health, environment, education, longevity, etc. (ii) The method does not provide us the distribution of income.