Classifications of Countries Basedon their Level of Development: How it is Done and How it Could Be Done

Author/Editor:

Lynge Nielsen

Publication Date:

February 1, 2011

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The paper analyzes how the UNDP, the World Bank, and the IMF classify countries based on their level of development. These 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. Such an alternative methodology is developed and used to construct classification systems using a variety of proxies for development attainment.

Series:

Working Paper No. 2011/031

Subject:

Banking International organization Personal income Poverty Purchasing power parity

English

Publication Date:

February 1, 2011

ISBN/ISSN:

9781455216789/1018-5941

Stock No:

WPIEA2011031

Pages:

45

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