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16 December 2014

The real wealth of nations

Sonnie Bailey

The World Bank published a report in 2006 entitled ‘Where is the Wealth of Nations?’.

The findings of the World Bank report suggest that “human capital and the value of institutions (as measured by rule of law) constitute the largest share of wealth in virtually all countries.”

The report suggests that the wealth of a country isn’t in its natural resources, or even its productive capital such as machinery, buildings and infrastructure. It’s the way a way a society organises itself, and the knowledge and skills of the members of that society, that are the real drivers of wealth.

Invisible factors, like the level of trust between members of a society, are what really make us wealthy.

That’s food for thought.


Tags

society, trust


About the author 

Sonnie Bailey

In his spare time, Sonnie likes telling people that he’s a former Olympic power walker, a lion tamer, or that he is an orthodontist. He is none of those things. In reality, Sonnie is a financial planner based in Christchurch. Through his business, Fairhaven Wealth (www.fairhavenwealth.co.nz), he provides independent, advice-only, fixed-fee financial planning services. Sonnie is a “recovering lawyer”: he has specialised in trusts and personal client work. He has also worked as a financial services lawyer for many years.

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