How do you calculate the wealth of a nation? It’s easier to figure out the net worth of an individual, but it’s not so easy in the case of countries. Here’s an attempt.
Mode of Calculation
The official and conventional estimates of a country’s wealth are always based on established economic variables like gross domestic product (GDP) and purchasing power parity (PPP). These variables are basically averages, kept by the World Bank, International Monetary Fund, and other similar global financial institutions.
The problem with an estimate based on averages is that small and less populated countries always come first. Nevertheless, the list really gives a general idea about the most affluent countries in the world. Some countries, such as Brunei and Hong Kong have been excluded from this list. Either the countries are not sovereign republics or the entire wealth is owned by a few individuals.
So, here’s the list of the world’s richest countries.
Qatar
1. Qatar
Once a poor country of desert peasants, now Qatar is a land of oil riches. Its citizens need not pay any taxes. Almost all public services are free. To top that, the country is building air-conditioned soccer stadiums for the soccer World Cup in 2022. This was decided after other countries had complained that Qatar was too hot to host a World Cup soccer tournament. Certainly, Qatar is very hot financially right now, and it will remain hot till its oil fields remain productive.
Photo Courtesy: Lazy Sam
Luxembourg
2. Luxembourg
Luxembourg is one of the smallest countries in the world. It rarely makes news. The country normally finds mention in the global media when they lose some soccer matches to other European countries by a big margin or when some of the European Union institutions headquartered in the country make some announcements and conduct some events - or when the news is about the world's richest countries. Previously powered by steel and chemical industry, the Luxembourg economy at present is fueled by the banking industry. Known sometimes as a tax haven, the country probably has the highest number of banks per square mile.
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Norway
3. Norway
One of the least populated countries in Europe, Norway gains its wealth from its huge oil and natural gas reserves. This Scandinavian country is known for the whales in its seas, but is actually the largest producer of oil outside the Arab world. It's the ultimate welfare state, having offered its residents a universal health care system, free or subsidized education at all levels, and an all-encompassing social security scheme.
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