Lesson plan
Atlas method
The World Bank has used the Atlas method since 1993 to estimate the economic size of countries based on their gross national income (GNI) in U.S. dollars and List of countries by GNI (real) per capita. To convert a country's GNI from its local currency to U.S. dollars, the Atlas method uses a conversion factor that averages exchange rates over three years. This helps reduce the effect of temporary exchange rate changes. Additionally, it adjusts for differences in inflation rates between the country (using its GDP deflator) and several developed countries (using a weighted average of their GDP deflators in Special Drawing Rights, or SDR, terms). The converted GNI in U.S. dollars is then divided by the country's midyear population to determine GNI per capita. The World Bank prefers the Atlas method for comparing the economic sizes of countries. It is used to categorize countries into low, middle, and high-income groups and to determine their eligibility for loans. This method helps avoid abrupt changes in country classification due to short-term economic fluctuations.
Article summary
The World Bank has used the Atlas method since 1993 to estimate the economic size of countries based on their gross national income (GNI) in U.S. dollars and List of countries by GNI (real) per capita. To convert a country's GNI from its local currency to U.S. dollars, the Atlas method uses a conversion factor that averages exchange rates over three years. This helps reduce the effect of temporary exchange rate changes. Additionally, it adjusts for differences in inflation rates between the country (using its GDP deflator) and several developed countries (using a weighted average of their GDP deflators in Special Drawing Rights, or SDR, terms). The converted GNI in U.S. dollars is then divided by the country's midyear population to determine GNI per capita. The World Bank prefers the Atlas method for comparing the economic sizes of countries. It is used to categorize countries into low, middle, and high-income groups and to determine their eligibility for loans. This method helps avoid abrupt changes in country classification due to short-term economic fluctuations.
Key claims
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Discussion questions
- Summarise the article in your own words. Which single claim would you verify first, and why?
- Which claim in this article is most likely to be revised as the sources update? How would you check its current status?
- If two sources disagreed about one of these facts, what would you need in order to trust one over the other?
Bibliography
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Key claims and bibliography are generated from the same tracked claims and sources as the article page.