World Bank ranking puts Nordic countries at top of list of richest countries

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In a recent survey, the World Bank estimated the total wealth of 120 countries, including produced capital, natural resources, and the value of human skills and capabilities. The findings of the survey were published in a book entitled Where is the Wealth of Nations? Measuring Capital for the 21st Century that was presented in Washington last Tuesday. The information of the survey dates from 2000.
      European countries dominate the list of the wealthiest countries along with the United States and Japan. While Finland was in 12th spot, three other Nordic countries were wealthier - Denmark was second, Sweden third, and Norway eighth.
      Switzerland heads the list, in which the top performers are all OECD countries.
      According to the survey, the estimated national wealth of each Finnish citizen is USD 419,346, or approximately EUR 350,000.
     
The researchers of the World Bank divided the total national wealth into three parts. The most important part includes the intangible capital component of total wealth, for example good education, efficient administration, and justice system.
      The other two components are produced capital and natural resources. Produced capital includes buildings, infrastructure, and urban land. Natural resources include forest resources, agricultural land, and sub-soil assets, for example oil.
     
The value of produced capital per capita in Finland is USD 61,064, while the value of natural resources is USD 11,445 per capita, consisting mostly of forest resources. On the other hand, even though Finland’s forest resources amount to a total of USD 8,464 per capita - one of the highest in the world - the proportion of intangible capital residual among the country’s total wealth is 82 percent. Produced capital represents 14 percent, while the remaining three percent of the total wealth is made up of natural resources.
     
While Europe heads the top-10 list, Africa dominates the bottom-10 list. Ethiopia has the lowest level of total wealth, combined with a very low share of produced capital. A similar pattern can be observed in Burundi, Niger, Nepal, Guinea-Bissau, Mozambique, Chad, and Madagascar. Nepal is the only country at the bottom end of the table that is not in Africa.
      Nations listed as among the poorest countries are characterised by high levels of natural capital - at least 25 percent of the total. Moreover, the survey indicates that the intangible capital component of total wealth is predominant, even in developing countries.
     
Economist Kirk Hamilton of the World Bank will give an address on the issue of national wealth at the WIDER Institute in Helsinki at 4.00 p.m. on Tuesday March 7th. The event is open to the public. Address: Katajanokanlaituri 6 B.


Links:
  The World Bank: Environmental Economics and Indicators

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