There are several different reports published every year about the Wealth of nations. These surveys use a host of different statistical methods to analyze the different sources of income of various countries and rank them on the basis of the wealth. These surveys can be used by various stakeholders for a variety of reasons including deciding whether the country is a good option for immigration or investment purposes.
Some statistical surveys rank the countries on the basis of the size of their overall income or net wealth. In such surveys, generally the United States is seen at the top of the list, followed by Germany and China. The United Kingdom, Japan, and India follow close behind. However when the countries are sorted on the basis of the per-capita average wealth of their population – or alternatively, the median per-capita wealth of the citizens, then it is found that other nations lead the list or come out on top of the rankings. Also, the second metric helps to account for the problem of income inequality as well. When ranked on these terms Australia emerged as the richest country in terms of the highest per-capita wealth around the globe, with a per-capita income of approximately 200,000 USD in the previous year of 2018.
Advantage of Per-Capita Income Ranking For Immigration Decisions
A per capita income of 200,000 USD per person translates to nearly 1.5 crore per annum, which explains the beeline for immigration to Australia, from people around the world. Getting a chance to live in a country where your potential income could be 1.5 crore per annum, could really boost a person’s chances of improving his own income and creating wealth for future generations.
Another advantage of measuring income on a per capita basis is that it displays a much more balanced view of the overall wealth of the country, by acknowledging the fact that countries, which are smaller in size and have a lower population will definitely account for less amount of wealth as they will accumulate less of it in total. However, when the average wealth is calculated, then the distribution of income is not taken into account perfectly. One way to work around this problem is to calculate the Median Wealth of the nation, which statistically speaking, means the wealth of the person, who is at the middle of the list when wealth is ranked from top to bottom. This statistical figure, will improve as the asset distribution between the rich and poor reaches better parity.
The United States has been found to be the third on the list of wealthiest countries in terms of per-capita average income, while it ranks 19th on the basis of median wealth. Netherlands, on the contrary ranks at the 12th place in terms of per capita average income, but shoots up to the 4th place, when ranked on the basis of median wealth, which goes to show, how it is a more egalitarian nation when considered in terms of distribution of wealth.
The different statistical parameters used for ranking the wealth of nations can be useful for persons interested in immigration. These people should watch out for the median wealth as well as per capita income of the nation. The median income will increase when the overall income and assets of a country begin to be distributed in a more even manner.
[Source: statista]
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