inkomenslanden

Inkomenslanden is a Dutch term used to describe countries grouped by income level. The most widely used framework is the World Bank's income classification, which sorts economies according to gross national income (GNI) per capita in current U.S. dollars, using the Atlas method. The four categories are low-income, lower-middle-income, upper-middle-income, and high-income. The thresholds are updated annually, so a country can move between groups as its income level changes.

These classifications are used to guide development policy, aid allocation, and research. They also influence certain program eligibility and concessional financing, and they can inform analyses of trade and investment. However, income level is only one dimension of a country’s situation and does not capture inequality within a country or differences in cost of living. Currency fluctuations and methodological choices can lead to reclassification that does not always reflect real changes in well-being.

Examples of the typical grouping include high-income countries such as many in North America and Western Europe; upper-middle-income countries such as large economies in Asia, Latin America, and parts of Europe; and lower-middle-income and low-income countries found predominantly in Sub-Saharan Africa and parts of Asia and the Pacific. The classification is inherently dynamic, as national incomes rise or fall and populations grow, causing countries to shift between categories over time.

Critics note that the term can oversimplify economic reality and mask disparities within nations. Nevertheless, the income-based grouping remains a practical tool for international organizations, researchers, and policymakers to categorize economies and tailor targeted support.