The Global Wealth Pyra­mid 2016

Financial Nigeria Magazine - - Finance and Investment -

Ac­cord­ing to the re­cent Credit Suisse Re­search In­sti­tute's Global Wealth Re­port, three quar­ters of global adult pop­u­la­tion fit into the bot­tom ech­e­lon of the wealth pyra­mid. The 3.5 bil­lion adults with wealth be­low 10,000 dol­lars ac­count for 2.4 per­cent of global wealth. In con­trast, the 33 mil­lion mil­lion­aires com­prise less than 1 per­cent of the adult pop­u­la­tion, but own 46 per­cent of house­hold wealth.

Wealth dif­fer­ences be­tween in­di­vid­u­als oc­cur for many rea­sons. Vari­a­tion in av­er­age wealth across coun­tries ac­counts for much of the ob­served in­equal­ity in global wealth, but there is also con­sid­er­able dis­par­ity within coun­tries. Those with low wealth are dis­pro­por­tion­ately found among the younger age groups, who have had lit­tle chance to ac­cu­mu­late as­sets. Oth­ers may have suf­fered busi­ness losses or per­sonal mis­for­tune, or live in re­gions where prospects for wealth cre­ation are more limited. Op­por­tu­ni­ties are also some­times con­strained for women or mi­nori­ties. In con­trast, many in­di­vid­u­als can be found at the other end of the spec­trum who have ac­quired large for­tunes through a com­bi­na­tion of tal­ent, hard work and good luck.

The wealth pyra­mid cap­tures th­ese dif­fer­ences. The lay­ers of the wealth pyra­mid are quite dis­tinc­tive. The base tier has the most even dis­tri­bu­tion across re­gions and coun­tries, but also the most un­even range of per­sonal cir­cum­stances. In de­vel­oped coun­tries,

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