LICs:
* LIC stands for "Low-Income Country."
* Definition: LICs are countries with a low level of per capita income, typically below a certain threshold set by the World Bank.
* Characteristics:
* Generally have low levels of human development indicators like life expectancy, literacy rates, and access to education and healthcare.
* Often experience high poverty rates, limited access to clean water and sanitation, and vulnerability to natural disasters.
* Tend to rely heavily on agriculture and have a limited industrial base.
* Examples: Afghanistan, Burundi, Haiti, Malawi, Niger, Somalia.
HICs:
* HIC stands for "High-Income Country."
* Definition: HICs are countries with a high level of per capita income, typically exceeding a certain threshold set by the World Bank.
* Characteristics:
* Generally have high levels of human development indicators, including long life expectancy, high literacy rates, and access to quality healthcare and education.
* Advanced industrial and technological sectors.
* Strong infrastructure, including transportation, communication, and energy.
* High levels of social and political stability.
* Examples: Australia, Canada, France, Germany, Japan, United States.
It's important to note:
* The World Bank uses Gross National Income (GNI) per capita as the primary indicator to classify countries into income groups.
* These classifications are not static and countries can move between categories over time based on economic growth and development.
* Classifications are subject to debate as they don't always capture the full complexity of a country's economic and social situation.
These categories are used to understand global development trends, allocate resources, and develop targeted policies.