INEQUALITIES

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WEALTH AND POVERTY IN THE WORLD

The distribution of wealth and economic indicators are fundamental to understanding global economic dynamics and inequalities between countries.

This report examines the most common techniques for measuring wealth distribution, such as the Gini Index, the Lorenz Curve, and Net Worth per Adult.

Using these tools, we analyze the countries with the highest net worth per adult and those with the greatest inequalities in wealth distribution.

Additionally, the report explores the distribution of wealth by continent, highlighting disparities between North America, Europe, Asia, Latin America, the Middle East and North Africa (MENA), Sub-Saharan Africa, and Oceania.

A list of the poorest countries in the world, based on GDP per capita, is also presented, along with an assessment of average salaries and the cost of living in countries with the lowest wages.

Through this analysis, the report aims to provide a comprehensive overview of global economic inequalities, and the challenges countries face in improving wealth distribution and the standard of living for their citizens.

The most common techniques for measuring wealth distribution in Countries are:

Gini Index: A numerical value that measures inequality in the distribution of income or wealth.
Lorenz Curve: A graph that shows the cumulative distribution of wealth or income.
Learn more
Net Worth: The difference between the value of all assets owned and the debts owed. Learn more

Based on these indices, the countries with the highest Net Worth per Adult in the world are:

1. Switzerland, 2. Australia, 3. United States. Learn more

The countries with the highest wealth distribution inequalities are:

1. South Africa, 2. Venezuela, 3. Brazil, 4. UAE, 5. Saudi Arabia, 6. Sweden, 7. United States, 8. India, 9. Austria

Over the past 15 years, wealth inequality has increased in almost every country in the world, and unemployment has fluctuated.

It is surprising that Sweden ranks fifth in this list. The country has one of the highest rates of billionaires per capita, with one billionaire for every 250,000 people. Learn more

In comparison, the United States has about one billionaire for every 500,000 people. Learn more

This concentration of wealth is largely due to Sweden’s thriving tech sector, which has produced over 40 tech startups in the past two decades.

Various studies and reports indicate that wealth concentration has grown, with a significant portion of the increase in global wealth going to the richest 10% of the population. Learn more

Unemployment increased during the financial crisis of 2008 and again during the COVID-19 pandemic in 2020.

Therefore, while wealth inequality has increased in many countries, unemployment has shown a more variable trend, with periods of increase followed by periods of decrease. Learn more

The Distribution of Wealth by Continents

The distribution of wealth by continent varies significantly.

Here’s an overview based on recent data:

In North America, there has been a significant increase in total wealth, with the United States holding a large portion of global wealth.

In Europe, wealth is relatively evenly distributed, with countries like Norway showing a more equitable distribution.

Italy is an exception, having seen a concentration of wealth since 2008, confirming its status as a Western country in decline.

In Asia, China has experienced rapid wealth growth, significantly contributing to the region’s wealth distribution.

Latin America has a lower level of wealth distribution, with the richest ten percent holding nearly 76 percent of the total wealth.

In the Middle East and North Africa (MENA), the situation is similar to that of Latin America; the MENA region has a high concentration of wealth among the richest ten percent, who hold nearly 76 percent of the total wealth.

Sub-Saharan Africa also shows significant inequality in wealth distribution, with the richest ten percent capturing a large portion of the wealth.

Oceania: In Oceania, the richest ten percent hold about 60 percent of the wealth.

These data highlight the disparities in wealth distribution across different continents, with North America and Europe holding the majority of global wealth, while regions like Latin America and MENA show higher levels of inequality.

The Poorest Countries in the World

Here is a list of the poorest countries in the world, based on GDP per capita:

South Sudan: Plagued by conflicts and political instability
Burundi: With a GDP per capita of about $240
Central African Republic: With a GDP per capita of about $480
Congo (DRC): With a GDP per capita of about $590
Somalia: With a GDP per capita of about $470
Mozambique: With a GDP per capita of about $500
Niger: With a GDP per capita of about $610
Liberia: With a GDP per capita of about $680
Madagascar: With a GDP per capita of about $510
Malawi: With a GDP per capita of about $640

These countries face significant challenges such as conflicts, political instability, and lack of infrastructure, which contribute to their difficult economic situation.

In this video, the 10 poorest countries are considered based on Purchasing Power Parity (PPP).

This is a method used to compare economic productivity and living standards between countries.

PPP adjusts for differences in price levels between countries, allowing for a more accurate comparison of economic indicators like GDP per capita.

In the context of defining the poorest countries, PPP helps to account for the fact that the cost of living and price levels can vary significantly from one country to another.

By using PPP, economists can better compare the real value of money and the actual purchasing power of people in different countries.

Average Salaries and Cost of Living

The countries with the lowest salaries are:

Cuba: $25 per month
Venezuela: $30 per month
Malawi: $110 per month
Madagascar: $146 per month
Kyrgyzstan: $200 per month
Bangladesh: $245 per month
Mozambique: $305 per month

Ranking of Major Countries by Cost of Living to Average Salary Ratio:

Cuba: 3906%
Venezuela: 2547%
Bahamas: 500%
Bangladesh: 400%
India: 400%
Argentina: 352%
Saudi Arabia: 345%
Brazil: 313%
China: 250%

Greece, with a ratio of 189%, is the European country with the highest cost of living in relation to the average salary, followed surprisingly by Norway (165%) and Italy (128%).

Canada (99%), Australia (91%), United States (89%), Japan (75%), Switzerland (63%), and Luxembourg (55%) are the countries where the average salary is higher than the cost of living.

As well as in the following European countries: France (98%), Norway (87%), Germany (83%), Iceland (83%), Denmark (79%).

To see all the countries, including city by city: NUMBEO

Conclusion

With this brief study, we have identified the countries with the highest net worth per adult, such as Switzerland, Australia, and the United States, and those with the greatest inequalities in wealth distribution, such as South Africa, Venezuela, and Brazil.

The analysis revealed that inequality in wealth distribution has increased in almost every country over the past 15 years, with a significant concentration of wealth in the hands of the richest 10% of the population.

This phenomenon is particularly evident in regions like Latin America and MENA, where the richest 10% hold nearly 76% of the total wealth.

We also explored the distribution of wealth by continent, highlighting disparities between North America, Europe, Asia, Latin America, the Middle East and North Africa (MENA), Sub-Saharan Africa, and Oceania.

Additionally, we presented a list of the poorest countries in the world, based on GDP per capita and PPP, and assessed average salaries and the cost of living in countries with the lowest wages.