1. Building a Sustainable Future
The Changing Wealth of Nations 2018
Building a Sustainable Future
Editors: Glenn-Marie Lange
Quentin Wodon
Kevin Carey
February 5, 2018
Brookings Institution

2. This book tracks wealth in 141 countries, from 1995 to 2014
The World Bank has developed wealth as an indicator of sustainability for two decades
This book tracks wealth in
141 countries, from 1995 to 2014
Long Term Prosperity and Well-Being
National Income / GDP
Total Wealth
Produced
Capital
Natural
Capital
Human
Capital
Net
Foreign
Assets
Machinery
Equipment
Structures
Urban
Land
Energy/Minerals
Agricultural
Land
Forests
Protected
Areas
Male/Female and Employed /Self-employed
Total Assets- Total Liabilities

3. Global Wealth by Income Group 1995 to 2014
Global wealth grew 66% between 1995 and 2014, from $690 trillion to $1,143 trillion with increasing convergence between middle-income and high-income countries

4. Growth in Total Wealth and Per Capita Wealth, 1995 to 2014
Population growth impacts per capita wealth, especially in low- and middle-income countries

5. Per Capita Wealth in 2014 by Income Group
Despite gains in middle-income countries, inequality persists. Per capita wealth in high-income OECD countries is 52 times that of low-income countries.
Low income
Lower Middle income
Upper Middle income
High income
non-OECD
High income
OECD
World

6. Total wealth grew everywhere, but per capita wealth did not
Percent Change in Wealth Per Capita
Total wealth grew everywhere, but per capita wealth did not

7. The composition of wealth fundamentally changes with economic development
Percent Shares of Wealth by Asset Type

8. Natural Capital: Share vs Per Capita Value
... but growing an economy is not about liquidating natural capital to build other assets
Natural capital per capita is highest in upper middle income and high income OECD countries
Low income
Lower Middle income
Upper Middle income
High income
OECD

9. Value of Natural Capital Per Person, 1995 to 2014 (2014 US$)
Agricultural land, fossil fuels and minerals grew the most; forests grew just enough to maintain the per capita value
Value of Natural Capital Per Person, 1995 to 2014 (2014 US$)
... but growing an economy is not about liquidating natural capital to build other assets

10. Human Capital: Share vs Per Capita Value
Human Capital rapidly increases as economies grow
Low income
Lower Middle income
Upper Middle income
High income
OECD

11. Gains in Human Capital from Gender Equality
Women account for less than 40% of human capital.
Gender equality could generate large gains
Gains in Human Capital from Gender Equality

12. What Have We Learned? Global wealth increased by 66% in 20 years
Middle income countries’ share has risen; beginning to close the gap with high income countries
Per capita wealth increased by 30%, but 25 countries saw stagnation or a decline
Natural capital, if managed wisely and rents invested properly, is a driver of sustainable growth
Human capital is the biggest component of wealth
The composition of wealth changes with economic development; managing wealth as a portfolio of assets is critical

13. WAVES