✅ Why they are useful
They give a quick way to compare countries, to see the world pattern and to decide which countries most need help.
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Unlock This CourseEvery year the World Bank sorts the world's countries into groups using one number: gross national income (GNI) per capita. This is the average income for each person in a country. Countries below a set line are low-income. Countries above a higher line are high-income. The countries in between are middle-income.
The World Bank also splits the middle group into lower-middle and upper-middle. The money thresholds change every year, so in an exam you do not need to learn exact figures. You need to know the idea.
Key terms:
Income groups follow a clear pattern across the world.
Mostly in sub-Saharan Africa, for example Niger, Mali and Madagascar. A few are elsewhere, such as Afghanistan and Yemen in Asia.
Much of Asia, Latin America and North Africa. Examples are India and Egypt (lower-middle) and Brazil, Mexico and China (upper-middle).
North America, most of Europe, Japan, Australia and the Gulf states. Examples are the USA, Germany, Japan and Qatar.
Most of the world's people live in the middle group, so the middle is the largest and most varied group.
"Describe" questions ask what the map shows, not why. Use four steps:
Do not give reasons when the question only says "describe". Save those for "explain".
In about 1980 a group led by Willy Brandt, a German politician, drew a line across a world map. It is called the Brandt line. It ran roughly along 30 degrees north, then bent south to put Australia and New Zealand with the rich countries. Rich countries lay in the "North" above the line. Poor countries lay in the "South" below it.
It was a simple way to show a world split in two. The line is an older idea and it is less useful today for three reasons:
The pattern is not fixed. Countries can move between groups when their incomes change, and the World Bank updates the lists every year.
Cambridge expects you to know that income groups are useful but limited. A group is only a label based on one average number.
They give a quick way to compare countries, to see the world pattern and to decide which countries most need help.
Countries in one group can be very different. Averages hide inequality inside a country. Income alone does not show health, education or quality of life.
Fig. 1.1 shows made-up data for the share of countries in each income group in three regions.
| Region | LICs (%) | MICs (%) | HICs (%) |
|---|---|---|---|
| Region P | 70 | 25 | 5 |
| Region Q | 0 | 60 | 40 |
| Region R | 0 | 10 | 90 |
Fig. 1.1 (made-up data)
(a) Define the term middle-income country. [2 marks]
(b) Identify the region with the highest share of LICs. [1 mark]
(c) Compare the income groups in Region Q and Region R. [3 marks]
(d) Explain why grouping countries as LICs, MICs and HICs may not always be meaningful. [6 marks]
(a) A country with a GNI per capita (1) that is between the World Bank's low and high lines (1).
(b) Region P (1).
(c) Neither region has any LICs (1). Region Q has mostly MICs, 60%, whereas Region R is mostly HICs, 90% (1). Region Q has 40% HICs compared with 90% in Region R, so Region R is richer overall (1).
(d) Level 3 answer: The groups use only one number, the average GNI per capita, so they hide a lot. Countries in the same group can be very different. A MIC that has just passed the low line is far poorer than one near the top of the group, yet they have the same label. Averages also hide inequality inside a country. A MIC may have a wealthy city and very poor rural areas, and a HIC may still have people living in poverty. Income also does not show quality of life. Two countries in the same group can have different life expectancy or literacy, which is why the Human Development Index is also used. The lines between groups are only cut-off points, so a country just below a line is almost the same as one just above it. The groups are also not fixed because they are updated every year and countries move. The groups are useful for a quick comparison, but they should be used with care.
In (c), use words that compare, such as "whereas" or "compared with", and quote figures from Fig. 1.1 for both regions.