Classifications of Countries BasedOn their Level of Development: How it is Done and How it Could Be Done
IMF Working Papers, February 1, 2011
Source details
- Canonical URL
- Classifications of Countries BasedOn their Level of Development: How it is Done and How it Could Be Done
Other formats
Bibliographic details
- Authors: Lynge Nielsen
- Published: February 1, 2011
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781455216789.001
Overview
- The paper analyzes how the UNDP, the World Bank, and the IMF classify countries based on their level of development.
- Existing classification systems are found lacking in clarity with regard to their underlying rationale.
- The paper argues that a country classification system based on a transparent, data-driven methodology is preferable to one based on judgment or ad hoc rules.
- An alternative methodology is developed and used to construct classification systems using a variety of proxies for development attainment.
Main findings and argument
- Current systems used by UNDP, the World Bank, and the IMF lack clear articulation of their underlying rationale.
- A transparent, data-driven country classification system is argued to be preferable to systems based on judgment or ad hoc rules.
- The paper develops and applies an alternative methodology to construct classification systems using multiple proxies for development attainment.
Methodology developed
- The paper develops a transparent, data-driven methodology for classifying countries by level of development.
- The methodology is applied to construct classification systems using a variety of proxies for development attainment.
- Emphasis is placed on replacing judgmental or ad hoc rule-based classifications with empirically grounded procedures.
Policy implications and recommendations
- Move from judgment-based or ad hoc rule-based classification systems toward transparent, data-driven classification systems.
- Use a variety of development proxies when constructing country classification systems to capture multiple dimensions of development attainment.
Subjects and keywords
- Subject: Banking, International organization, Personal income, Poverty, Purchasing power parity
- Keywords: balance of payments, country classification system, development country, WP
Content derived from "Classifications of Countries BasedOn their Level of Development: How it is Done and How it Could Be Done", IMF Working Papers, February 1, 2011.
Content in this bundle
- 1. The World Bank's Operational Income Thresholds