A newly released report has revealed that only 1% of the world’s population will own 3/4 of the world’s wealth by 2030.
The report, released by the Library of the British House of Commons and published by The Guardian states that if the trend of wealth inflation, which began in the wake of the global financial crisis in 2008, continues at the same pace, 64% of the world’s wealth will be concentrated in the hands of only 1% of the world’s population.
It is to be noted that the annual increase of wealth of the world’s 1% has been sustainable at an average of 6%, with only 3% for 99% of the Earth’s population. Accordingly, if this rate continues at the same pace then by 2030, 1% of the world’s population will have an estimated figure of $305 trillion; the current wealth owned by the 1% is currently estimated at $140 trillion.
The report warned world leaders that the continued inflation of wealth among the richest people over the next decade would fuel mistrust and anger among the world’s population in general. Therefore, they should move against wealth accumulation and take appropriate measures to restore a financial balance within their countries.
Usually, as per wealth management consultants, rich people diversify their wealth into cash savings, gold and diamonds, long term investments and other short term stock market and business investments. In terms of savings and long term investments they estimate their percentage at an average of 50-60% pending on the person, and usually these savings grow with the wealth development in the same proportion.
Accordingly, and as per the Report’s analysis and the specialists perspective, half of the world’s wealth will remain idle to the world’s economy, while only half of the world’s wealth is and will be circulating in the economy, which is a concerning factor as the world’s population grows at a proportion that requires injecting more capital and expanding production of resources.
In September 2015, Mr. Ban Ki-moon, then United Nations Secretary-General, announced the Sustainable Development Agenda 2030, adopted by 193 member states of the United Nations General Assembly. He described it as a pledge by world leaders to all people everywhere for a humanity programme to eradicate poverty in all its forms. Such an initiative requires investments in education for all programmes, labour intensive projects to eradicate unemployment as well as a coordinated vision for utilising the world’s wealth in the process. The world is getting into the new age of AI and robotics that will impact labour in factories as well as other sectors in today’s employment market.
Current world conflicts and disputes growing into trade wars, an increased flow of refugees as well as political frictions add to the World’s instability, which may cause an increase in the level of savings and less capital circulation within the economies. Rich people and businessmen are driven by profit and financial gain, which thrives within stable market economies. Accordingly, to achieve the UN’s initiative, countries need to introduce special projects that will attract businessmen and rich people for utilising their saved-up capital resources safely, while serving the purpose of the UN’s 2030 vision.