I don't agree with this 2 tier system.
Major flaw in this argument is there isn't major gulf in quality between test teams of Australia,India,Pakistan,Srilanka,NewZealand and West Indies. Currently South Africa and upto some extent England are ahead of the pack. These rest of the teams have capacity to beat each other at their home conditions.
Another major problem with this approach will be danger of team like India with good commercial market will be deprived to play in top tier. Let's say India failed to make it in top tier then it's replacement won't able to generate same amount of revenues for home boards. Let's not forget commercial aspect of the game which is equally important as most of the money generated by home boards are because of TV rights.
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