Why Pakistan is wealthier than India

[AfrazulMandal]

Russia is wealthier than China!
Okay.

 

[KhalaiMakhlooq]

but it has to do with wealth.

No, wealth creation is helped if you are an educated, creative and ambitious person.

If you go around trying to spend money like there no tomorrow, that's called an arab sheikh.

China is wealthier than Russia.
Okay.

Er, what world do you live in? Why do you think there's a trade war between US-China and Trump talks about it all day. The US owes China over $1 Trillion

 

[Darwin]

https://www.dawn.com

See the headlines in bold in your biggest newspaper.
1 b usd aid received. Everyone so happy.
Now let's continue this thread.

 

[Baby Leone]

No, wealth creation is helped if you are an educated, creative and ambitious person.

If you go around trying to spend money like there no tomorrow, that's called an arab sheikh.



Er, what world do you live in? Why do you think there's a trade war between US-China and Trump talks about it all day. The US owes China over $1 Trillion

OMG i just asked to see the pattern not lecture on how to spend, Obviously if you have more money you will spend more. thats not rocket science right?

 

[KhalaiMakhlooq]

No, wealth creation is helped if you are an educated, creative and ambitious person.

If you go around trying to spend money like there no tomorrow, that's called an arab sheikh.



Er, what world do you live in? Why do you think there's a trade war between US-China and Trump talks about it all day. The US owes China over $1 Trillion

1.2 Trillion US Dollars owed by US to China.
https://www.cnbc.com/2018/04/05/chi...pon-that-could-be-used-in-a-us-trade-war.html

OMG i just asked to see the pattern not lecture on how to spend, Obviously if you have more money you will spend more. thats not rocket science right?

you cant measure wealth by the consumption of luxury good by the population.

 

[Ghessan]

As someone who's travelled to many many places all the world, and interacts with people from ALL nationalities on a daily basis, I think you can understand what I mean when I say, the people I meet are intelligent, creative and ambitious.

How many times have you set foot outside of your country, sir?

i have traveled several times and met many Indians in business circles even host business colleagues and their families during cricket matches in Pakistan when they used to visit. Spend my childhood abroad having great interaction with Indian families. this was just to tell you yes i do know few things and that was the sole purpose.

let's rest this aside,

but when it comes out of people as they start counting their on to belittle others does not reflect any good.

 

[KhalaiMakhlooq]

'owes' implies that the US went and asked China for a loan, instead of China voluntarily invested in US treasuries

View attachment 526466

You don't live in the UK, everyone knows here that China will be the next global super-power. Do read any news?

https://www.usnews.com/opinion/worl...global-power-is-shifting-from-the-us-to-china

 

[Chakar The Great]

ASSET CLASSES
An ambitious project to measure the wealth of nations shows how GDP is a deceptive gauge of progress
By Eshe Nelson & Dan Kopf

January 31, 2018

Is gross domestic product a sufficient measure of an economy’s health? Many argue that GDP, which counts the sum of the goods and services produced by a nation, fails to reflect a population’s wellbeing, because it accounts for neither distribution of income nor extractive effects such as pollution.

This week, the World Bank published an ambitious project to measure economies by wealth, to get a more complete picture of a nation’s health, both in the present and the future. The Changing Wealth of Nations analyzes the wealth of 141 countries, from 1995 to 2014. The report argues that wealth is a better judge of economic success because it measures the flow of income that a country’s assets generate over time—although it is significantly more challenging to measure. “A country’s level of economic development is strongly related to the composition of its national wealth,” the report states.

Wealth includes all assets, which means human capital (the value of earnings over a person’s lifetime), natural capital (energy, minerals, agricultural land), produced capital (machinery, buildings, urban land), and net foreign assets.

Assessing an economy by GDP instead of wealth is like looking exclusively at a company’s income statements without considering the assets on its balance sheet. A company can make its income look good for a short time by liquidating assets, but over the long run this will reduce the firm’s productive capacity and other means of generating income in the future.

The same applies to a country. GDP “does not reflect depreciation and depletion of assets, whether investment and accumulation of wealth are keeping pace with population growth, or whether the mix of assets is consistent with a country’s development goals,” the report states. That said, for most countries GDP is strongly correlated to wealth.

However, there are outliers. For example, in Turkey, GDP outpaces wealth. Kuwait has much more wealth per capita than its GDP (as does Saudi Arabia, but to a lesser extent). Kuwait and Saudi Arabia have the resources to make investments far into future. Saudi Arabia is making these efforts, diversifying its economy away from oil under a plan known as Vision 2030.

The push for wealth accounting also came up in the 1980s, the World Bank says. Back then, there were concerns that the rapid growth in GDP of resource-rich countries was mostly the result of liquidating natural capital—wealth accounts would have been a better measurement of an economy’s health at the time.

In many rich countries, human capital tends to be the largest component of wealth, whereas natural capital is higher in low- and middle-income economies. Global wealth increased 66%, to $1,143 trillion, between 1995 to 2014. And while total wealth increased almost everywhere, per capita wealth did not. Some low-income economies experienced a decline because population growth outpaced investment, especially in parts of Africa. The share of global wealth held by low-income countries remained at about 1% throughout the period of study, even as their share of the world population increased from 6% to 8%.

The table below shows the share of wealth that comes from different types of capital for the 10 most populous countries in the world. Human capital accounts for roughly two-thirds of global wealth.

As global economies develop, the composition of wealth changes. In low- and middle-income countries, human capital wealth on a per-capita basis tends to increase, while aging populations and stagnant wage growth means that this component shrinks for richer countries. Still, in high-income countries human capital comprises some 70% of wealth, and natural capital only 3%.

Simply having natural capital is not enough to ensure the economic development of lower-income countries, the World Bank says. Of the 24 countries classified low-income since 1995, 12 are resource rich, the organization says.

Globally, another way to increase wealth is through gender equality. The World Bank finds that women account for less than 40% of human capital wealth because of their lower earnings, lower labor force participation, and fewer average hours of work. If the gender pay gap were closed, the world would experience a 18% increase in human capital wealth.

Very impressive. I love when people bring facts to the table. If some one wants to stay in denial, be it.

 

[Tejas Spokesman]

I had to post this because many people on this forum still quote GDP, and to be honest we stopped using that in the mid-20th century.

Wrong.
Both IMF and World Bank have fully rejected Wealth data for measuring a nations development and only use GDP and GNI.
This ia because wealth index takes into account Fixed assets like land amd house owner ship which are not economic activities.
The main reason why Pakistan has more wealth than as per this data is because average per capita land area owner ship is higher in Pakistan than India.

Also research showed zero correlation between wealth and government revenues whereas It has been proved that Govt revenues are highly proportionate to GDP.

 

[KhalaiMakhlooq]

Wrong.
Both IMF and World Bank have fully rejected Wealth data for measuring a nations development and only use GDP and GNI.
This ia because wealth index takes into account Fixed assets like land amd house owner ship which are not economic activities.
The main reason why Pakistan has more wealth than as per this data is because average per capita land area owner ship is higher in Pakistan than India.

Also research showed zero correlation between wealth and government revenues whereas It has been proved that Govt revenues are highly proportionate to GDP.

When did they fully reject wealth accounting of nations?

where do I live? pray tell!
point me to the post of mine where I am denying that China is the next global power!

The point was is China more wealthier than Russia?

 

[Tejas Spokesman]

ASSET CLASSES
An ambitious project to measure the wealth of nations shows how GDP is a deceptive gauge of progress
By Eshe Nelson & Dan Kopf

January 31, 2018

Is gross domestic product a sufficient measure of an economy’s health? Many argue that GDP, which counts the sum of the goods and services produced by a nation, fails to reflect a population’s wellbeing, because it accounts for neither distribution of income nor extractive effects such as pollution.

This week, the World Bank published an ambitious project to measure economies by wealth, to get a more complete picture of a nation’s health, both in the present and the future. The Changing Wealth of Nations analyzes the wealth of 141 countries, from 1995 to 2014. The report argues that wealth is a better judge of economic success because it measures the flow of income that a country’s assets generate over time—although it is significantly more challenging to measure. “A country’s level of economic development is strongly related to the composition of its national wealth,” the report states.

Wealth includes all assets, which means human capital (the value of earnings over a person’s lifetime), natural capital (energy, minerals, agricultural land), produced capital (machinery, buildings, urban land), and net foreign assets.

Assessing an economy by GDP instead of wealth is like looking exclusively at a company’s income statements without considering the assets on its balance sheet. A company can make its income look good for a short time by liquidating assets, but over the long run this will reduce the firm’s productive capacity and other means of generating income in the future.

The same applies to a country. GDP “does not reflect depreciation and depletion of assets, whether investment and accumulation of wealth are keeping pace with population growth, or whether the mix of assets is consistent with a country’s development goals,” the report states. That said, for most countries GDP is strongly correlated to wealth.

However, there are outliers. For example, in Turkey, GDP outpaces wealth. Kuwait has much more wealth per capita than its GDP (as does Saudi Arabia, but to a lesser extent). Kuwait and Saudi Arabia have the resources to make investments far into future. Saudi Arabia is making these efforts, diversifying its economy away from oil under a plan known as Vision 2030.

The push for wealth accounting also came up in the 1980s, the World Bank says. Back then, there were concerns that the rapid growth in GDP of resource-rich countries was mostly the result of liquidating natural capital—wealth accounts would have been a better measurement of an economy’s health at the time.

In many rich countries, human capital tends to be the largest component of wealth, whereas natural capital is higher in low- and middle-income economies. Global wealth increased 66%, to $1,143 trillion, between 1995 to 2014. And while total wealth increased almost everywhere, per capita wealth did not. Some low-income economies experienced a decline because population growth outpaced investment, especially in parts of Africa. The share of global wealth held by low-income countries remained at about 1% throughout the period of study, even as their share of the world population increased from 6% to 8%.

The table below shows the share of wealth that comes from different types of capital for the 10 most populous countries in the world. Human capital accounts for roughly two-thirds of global wealth.

As global economies develop, the composition of wealth changes. In low- and middle-income countries, human capital wealth on a per-capita basis tends to increase, while aging populations and stagnant wage growth means that this component shrinks for richer countries. Still, in high-income countries human capital comprises some 70% of wealth, and natural capital only 3%.

Simply having natural capital is not enough to ensure the economic development of lower-income countries, the World Bank says. Of the 24 countries classified low-income since 1995, 12 are resource rich, the organization says.

Globally, another way to increase wealth is through gender equality. The World Bank finds that women account for less than 40% of human capital wealth because of their lower earnings, lower labor force participation, and fewer average hours of work. If the gender pay gap were closed, the world would experience a 18% increase in human capital wealth.

but as per few illiterate indians (majority) indians are light years ahead of Pakistan

if you want to see real wealth just see the consumption pattern of these 3 countries Pakistan, Indian & Bangladesh and you will get shocking results.

"human capital (the value of earnings over a person’s lifetime)"

i think this kept Pakistan in top 10 and obviously most populous as ours most population is a young lot.

Because Indian population is almost thrice compare to Pakistan. Still, India is doing way better in many fields .... I will start from IT (Information Technology). and Pakistan is also doing better compare to India in many fields.

And, both country is struggling with corrupted leaderships, Corrupted Babu's and Corrupted management systems.

But Both are suffering from same Rape incidents, crime rate, toilet and health care issues........

Very impressive. I love when people bring facts to the table. If some one wants to stay in denial, be it.

The latest Global Wealth report showed that India's average wealth per capita is $7024 whereas Pakistan's average wealth per capita $3816. Average wealth=Total national wealth divided by total adult population.

The only reason Pakistani per capita median wealth ($1711) is ahead of India's ($1289) is because of wealth distribution inequality.

http://publications.credit-suisse.c...earch-institute/global-wealth-report-2018-en/

 

[JohnWick]

The latest Global Wealth report showed that India's average wealth per capita is $7024 whereas Pakistan's average wealth per capita $3816. Average wealth=Total national wealth divided by total adult population.

The only reason Pakistani per capita median wealth ($1711) is ahead of India's ($1289) is because of wealth inequality.

http://publications.credit-suisse.c...earch-institute/global-wealth-report-2018-en/

But the average the inequality I think?

 

[Chakar The Great]

The latest Global Wealth report showed that India's average wealth per capita is $7024 whereas Pakistan's average wealth per capita $3816. Average wealth=Total national wealth divided by total adult population.

The only reason Pakistani per capita median wealth ($1711) is ahead of India's ($1289) is because of wealth distribution inequality.

http://publications.credit-suisse.c...earch-institute/global-wealth-report-2018-en/

There is massive disparity interms of income distribution in India. Dont fool us please.

 

[Tejas Spokesman]

There is massive disparity interms of income distribution in India. Dont fool us please.

Exactly.
Only reason India has less average per capita wealth than India is because of income inequality although India's has higher average per wealth because distribution is unproportionate.

 

[KhalaiMakhlooq]

The latest Global Wealth report showed that India's average wealth per capita is $7024 whereas Pakistan's average wealth per capita $3816. Average wealth=Total national wealth divided by total adult population.

The only reason Pakistani per capita median wealth ($1711) is ahead of India's ($1289) is because of wealth distribution inequality.

http://publications.credit-suisse.c...earch-institute/global-wealth-report-2018-en/

This uses a method that calculates data based on income, not including assets. That's a flawed method. Like valuing a company based on income and ignoring the balance sheet.

Exactly.
Only reason India has less average per capita wealth than India is because of income inequality although India's has higher average per wealth because distribution is unproportionate.

Income and Wealth are different.