World wealth

1. What is happening to World Inequality?!
By: Gholamhossein Davani
Member of Association of Economists Professional British Columbia, Ca
Economic researcher
The three richest people in the world possess more financial assets than the lowest 48 nations combined!! And According to the New York Times on July 22, 2014, the "richest 1 percent in the United States now own more wealth than the bottom 90 percent and As already noted, global household wealth equates to 51,600 US dollars per adult, a new all- time high for average net worth in spite that more than half world population are living with less than $ 2 USD per day and The 85 Richest People In The World Have As Much Wealth As The 3.5 Billion Poorest !!
Every year, Forbes, Fortune, Merrill Lynch and other website and economic institution publishes world wealth, world Billionaires and world unequal report. It regularly shows the increasing inequality of wealth, with the super-rich, representing just 0.13% of the world’s population, owning 25% of all financial assets (stocks, bonds and cash in banks)! Most of these people did not get their wealth by clever deals or investments, or by hard work (God forbid!), but mainly by inheriting it. They just make more money and own more wealth because they had it in the first place. The UN found that the top 10% of the world’s population owned 85% of all wealth, including property. And one-quarter of these people were in the US alone. The poorest 50% own just 1% of the world’s wealth! And they say Marx was wrong about the ‘amiseration’ of the working class. Suisse credit report emphasis that despite a decade of negative real returns on equities, several equity bear markets and the collapse of housing bubbles, the 2013 Credit Suisse Wealth Report finds that global wealth has more than doubled since 2000, reaching a new all-time high of 241 trillion US dollars. Strong economic growth and rising population levels in emerging nations are important drivers of this trend. Average wealth per adult has also hit a new peak of 51,600 US dollars, but inequality remains high.I prepared below table that source were economic reports that shows from 1987 to 2013 inspire the world was involve in financial crisis several years in financial crisis ( 2002 and 2007till 2013) the number and total wealth of rich billionaires has been increased so much ( $B3500 to $B6400= 4.4 times) . the main reason of world inequality are as common factors thought to impact economic inequality include as, globalization, privatization, labor market outcomes ,corporate corrupt, corporate fraud, change to high technological ,policy reforms , more regressive taxation, plutocracy(Tax Haven& Off shore Company), dead of ethics , criminal capitalism , ethnic discrimination, gender discrimination, nepotism ,variation in natural ability, neoliberalism. Time magazine at March 25, 2013 wrote a September study from the Economic Policy Institute (EPI) in

2. Washington noted that the median annual earnings of a full-time, male worker in the U.S. in 2011, at $48,202, were smaller than in 1973. Between 1983 and 2010, 74% of the gains in wealth in the U.S. went to the richest 5%, while the bottom 60% suffered a decline, the EPI calculated. No wonder some have given the 19th century German philosopher a second look.
Comparative World Billionaires regional 1987-2013*
The economic research said that The three richest people in the world possess more
financial assets than the lowest 48 nations combined!! And According to the New York Times on July 22, 2014, the "richest 1 percent in the United States now own more wealth than the bottom 90 percent"-
Year
Total No.
North America
Japan
Europe
Asia pacific
Russian
China
Others
Total assets
$BUSD
1987
140
41
24
-
-
-
-
223
295
1990
169
99
40
-
-
-
-
30
542
1995
365
129
35
-
-
-
-
201
892
2000
470
49
43
87
-
-
-
291
898
2002
497
283
-
121
61
-
-
32
1500
2005
691
384
-
188
90
--
-
29
2200
2007
946
476
-
242
160
-
-
68
3500
2010
1011
464
-
248
234
62
-
65
3600
2012
1226
515
-
310
243
96
122
183
4600
2014
1645
540
27
340
349
111
152
74
6400

3. Source: http://www.vox.com
In spite that every year the rich wealth has been increase average 60% in past 2o years but world poverty also increased that the table shows world poverty in 2013
Region
% in $1.25 a day poverty
Population (millions)
Pop. in $1 a day poverty (millions)
East Asia and Pacific
16.8
1,884
316
Latin America and the Caribbean
8.2
550
45
South Asia
40.4
1,476
596
Sub-Saharan Africa
50.9
763
388
Total Developing countries
28,8
4673
1345
Europe and Central Asia
0.04
473
17
Middle East and North Africa
0.04
305
11
Total
5451
1372

4. Source: http://www.vox.com
According to last economic research the total world wealth in 2013 was about $B241,000 that comparison were North America ($B 78,800), Europe ( $B 76,000) , Asia Pacific includes China and India( $B73,800) , Latin America and carbon( $B9,000) , Africa( $B2,700) that 41% were belong to 1% world population and 86% world wealth is belong to 10% of top population. The special report said $B 98,000 are belong to 32 Million persons that more than 50% are living in United States and important notes of Oxfam report are as follow:
1- The wealth of the one percent richest people in the world amounts to $110 trillion. That’s 65 times the total wealth of the bottom half of the world’s population.
2- The bottom half of the world’s population owns the same as the richest 85 people in the world.
3- Seven out of ten people live in countries where economic inequality has increased in the last 30 years.
4- The richest one percent increased their share of income in 24 out of 26 countries for which we have data between 1980 and 2012.

5. In the US, the wealthiest one percent captured 95 percent of post-financial crisis growth since 2009, while the bottom 90 percent became poorer.
.I believe Corrupt, Fraud , privatization and criminal capitalism are most tie with world wealth richest that you can look at richest man in emerging countries same Russia, India, China , Brazil , Turkey , Indonesia and Philippine that these countries have huge external and Internal debt and have must poverty population but number of Billionaires has been increased every year ! and in some country same Greece the total wealth of richest are more than 30% of GDP !!
that Tax Justice Network report has published in 2013 has emphasis that fraud is a branch of Corruption and I argue that fighting with fraud is part of corrupt fighting. The world's developing countries lost a total of $946.7 billion to corruption, trade misinvoicing and tax evasion in 2011, according to the research. And to make matters worse, the amount that gets spirited away is growing larger with each passing year. Money lost to corruption in developing nations was 13.7 percent greater in 2011 than was lost the year before; illicit outflows totaled $832.4 billion in 2010. The total figures are staggering: between 2002 and 2011, developing countries lost about $5.9 trillion to illicit outflows (Illicit Outflows from Developing Countries 2002-2011,” was released by Global Financial Integrity, a research and advocacy organization based in Washington, D.C). Especially Tax Justice Network in the index was launched on November 7, 2013.estimated $21 to $32 trillion of private financial wealth is located, untaxed or lightly taxed, in secrecy jurisdictions around the world. Illicit cross-border financial flows add up to an estimated $1-1.6 trillion each year. Since the 1970s African countries alone are estimated to have lost over $1 trillion in capital flight, dwarfing their current external debts of 'just' $190 billion and making Africa a major net creditor to the world. But those assets are in the hands of a few wealthy people, protected by offshore secrecy, while the debts are shouldered by broad African populations. All fraud research increasing alarm is just reminded fraud should not happen, but it does. It can happen from the highest to lowest levels in an organisation. Recent surveys by PricewaterhouseCoopers and Ernst & Young show that incidents of fraud have increased globally by 22% over the past two years and here in the UK the average corporate fraud costs a company some £200,000. The government estimates the annual cost of fraud to the UK economy is in the region of £14bn. As the world becomes more integrated the global dimension of inequality is likely to become increasingly relevant and In spite that there are many reasons for economic inequality within societies that said the main reason of world inequality are as common factors thought to impact economic inequality include as, globalization, labor market outcomes ,corporate corrupt, corporate fraud,privitization , change to high technological ,policy reforms , more regressive taxation, plutocracy(Tax Haven& Off shore Company), dead of ethics , criminal capitalism , ethnic discrimination, gender discrimination, nepotism ,variation in natural ability, neoliberalism.

6. Recently Economist Thomas Piketty, who specializes in the study of economic inequality, argues that widening economic disparity is an inevitable phenomenon of free market capitalism when the rate of return of capital is greater than the rate of growth of the economy but I believe that rising income inequality is structural to basic of capitalism since corporation increasingly substitute workers for capital equipment under competitive pressures to reduce costs and maximize profit and capitalist system would inevitably impoverish the masses as the world’s wealth became concentrated in the hands of a greedy few, causing economic crises and heightened conflict between the rich and working classes. “Accumulation of wealth at one pole is at the same time accumulation of misery, agony of toil, slavery, ignorance, brutality, mental degradation, at the opposite pole. Over the long- term, this trend increases the organic composition of capital, meaning that less labor inputs (workers) are required in proportion to capital inputs, increasing unemployment and increasing the size of the reserve army of labour. This process exerts a downward pressure on wages. The adoption of capital equipment for the substitution of labor (job automation) increases productivity per worker and thus profits for the capitalist class, resulting in a situation of relatively stagnant wages for the working class amidst rising levels of property income for the capitalist class. With above explanation that 99% in Occupy movement said Capitalism is collapsed, so we need new structure!! Might be we consider to quotes Supreme Court Justice Louis Brandeis, who said, ‘We may have democracy, or we may have wealth concentrated in the hands of the few, but we cannot have both.’
Conclusion:
According to new research is named” The Trillion Dollar Scandal report launched on 3rd September 2014” reported by The ONE Campaign) Illegal tax evasion, shady deals for natural resources and laundered money mean that a total of between $972 billion and $2.02 trillion flows out of developing countries every year. A significant proportion of the money from the trillion-dollar scandal ends up in offshore tax havens. ONE estimates that $20 trillion is held in such havens. If invested in health systems, revenues recovered according to economic research by ending the trillion-dollar scandal could:
Help avert 3.6 million deaths per year between 2015 and 2025 in low-income countries; Help avert 4.3 million deaths per year between 2015 and 2025 in lower-middle-income countries, putting the world on track to end preventable child deaths by 2030.11, Through the economic opportunities created, transparent, open data could add $13 trillion to the global economy by 2019 and contribute over half of the G20’s growth target. Newspaper circulation (534 million printed per day), it would take more than 5 years to sell 1 trillion papers. Counting to one trillion would take roughly 31,709 years (counting one number per second). $1 trillion could buy everyone on the planet a Starbucks latte every day for a month A

7. stack of one trillion one dollar bills would stand 67,866 miles high, or reach roughly a third of the way to the moon. Lined up end-to-end, a trillion one dollar bills would be 96,906,565 miles long, more than enough to reach the sun. $1 trillion is equivalent to the combined national incomes of Austria, Denmark, and Finland . $1 trillion would be enough to buy 8,928 F-35 fighter jets, the most costly plane ever built. $1 trillion is greater than the annual profits of the largest 86 public companies in the world, combined. 41.5% of company service providers approached to set up a phantom firm in the US required no identification whatsoever – 2.5 times the rate in other countries. 70% of the 213 biggest corruption cases between 1980 and 2010 involved anonymous shell companies. in 2014 money laundering globally was estimated to involve between $1.91 trillion and $3.64 trillion. UNODC suggests that “all crime proceeds appear to be generally higher in developing countries and tend to be laundered abroad more frequently”. ONE estimated the proportion of this estimate likely to relate to developing countries, using IMF statistics on the proportion of global GDP (purchasing power parity) originating in developing and emerging economies (50.8%),and used this ratio to calculate the likely scale of money laundering as estimated by UNODC originating in developing and emerging economies. We concluded that in 2014 the amount involved was likely to be between $972 billion and $1.853 trillion. Developing countries lose an estimated $100–$160 billion in tax revenues as a result of trade mispricing and an estimated $250 billion from illegal tax evasion each year. The global cost of money laundering in 2014 is estimated at between $1.91 trillion and $3.64 trillion. The global cost of bribery is estimated at between $600 billion and $1.7 trillion. ONE has taken a highly conservative estimate of the low-range costs of money laundering and bribery incurred by developing countries, at one-third of the global total. In this scenario, the cost of money laundering for developing countries is between $630 billion and $1.2 trillion, and the cost of bribery is between $200 billion and $560 billion. While there may be some overlap between these estimates, the use of highly conservative assumptions means the cost of corruption is likely to be underestimated rather than overestimated. If we aggregate the low range, the total comes to $1.18 trillion. Using less conservative assumptions of the proportion of bribery and money laundering relating to developing countries – two thirds – but still using low-range global estimates, the total could be as much as $2.02 trillion.

8. __________________________________________________________________
*- Asia pacific and Europe were in other countries from 1987to 2000 and Japan were joined to Asia pacific from 2002.
Source:
1- www.iresearch.worldbank.org/PovcalNet/povDuplic.html
2- www.web.worldbank.org/WBSITE/EXTERNAL
3- www.www.bidnessetc.com
4- www.Forbes.com
5- www.Wikipedia.com
6- www.knoema.com