Tag Archive for: Wealth

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Wealth in Dubai: Generous Strides in the Global Poverty Effort

Wealth in Dubai: Making Generous Strides in the Global Poverty EffortFrom a small pearl fishing village to one of the richest cities in the world, Dubai has made quite the journey. Dubai is the largest and most populous city in the United Arab Emirates and is home to the tallest building in the world, the Burj Khalifa.

People believe that wealth in Dubai stems from its oil industry. However, it only accounts for about 7 percent of its total revenue. The big bucks are in Dubai’s real estate.  Reports show that most of the state’s $82.11 billion in revenue come from its investment in real estate, airlines, and sea ports.

Dubai has shown that its population has no plans to hold onto its wealth.  The city has made tremendous strides toward the eradication of global poverty and plans to continue to do so until it is eliminated.  Forty-six years after the foundation of the UAE, international aid provided by its government and non-governmental organizations has been estimated at $15.23 billion.  This international support using wealth in Dubai makes it one of the world’s largest contributors to foreign aid.

“Foreign aid and assistance are one of the basic pillars of our foreign policy.  For we believe that there is no true benefit for us from the wealth that we have unless it does not also reach those in need, wherever they may be, and regardless of their nationality or beliefs,” founder and former president of the UAE Sheikh Zayed bin Sultan Al Nahyan said.

The majority of Dubai’s foreign aid goes to programs that focus on the assistance of the poor, healthcare, energy generation, transport and storage.  In recent years, the state has put an emphasis on the pursuit of solar energy.

Dubai’s leaders say that sustainability and clean energy are priorities for any long-term resolution to issues created by poverty.  They say that further investment in solar energy will lead to its use in emergency operations, schools, refugee camps and other aid processes of this kind.

– Emily Trosclair

Photo: Flickr

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How Education Affects Wealth and Prosperity in the United States

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Fifteen-years-ago, education was a golden ticket to a good secure job in the United States. The idea was to go to school, get a four-year degree and land a good career. College education was just that: education. Disciplines did not matter as much as the actual degree.

Times have changed. Increased pressure from other countries has created strong competition and graduating Americans are not given preference over other people anymore. Employers are looking for the skill sets necessary to complete the job and they are not afraid to outsource to get it.

Specialization has become more and more trendy and two-year degrees and specific training courses have surged in popularity. A May 2015 study from Georgetown University suggests that college graduates will earn $1 million more than high school graduates.

This is not new as it has been widely known for a while. The kicker though, the highest paying majors earn $3.4 million more that those with the lowest paying majors.

The study suggested that STEM related fields heavily out paid social sciences. For example, a bachelor’s degree in engineering or architecture earns an average of $83k annually over the course of their career, while a graduate degree holder in education earns $60k over their career on average.

The relationship is quite complex. Another influencing factor was whether graduates worked in the for-profit, nonprofit or public sector; which industry they worked for; and whether they participated in professional development after they had started their careers. Educators working business jobs, for example, would make more than an engineer working as a teacher.

As time has gone by, humanity studies have declined and business and STEM degrees are on the rise in America. This is heavily influenced by what is in demand in the labor market. Business degrees make up 26 percent of college-educated workers. Although humanity majors are down, liberal arts and humanity class enrollment has gone up due to more rigorous general education requirements.

Attainment is another major finding in the study. Among the 15 major groups, biology and life sciences majors are most likely to earn a graduate degree, while communications and journalism majors are the least likely to earn a graduate degree. Fifty-eight percent of biology and life sciences majors earn a graduate degree, compared to 21 percent of communications and journalism majors.

Better counseling and mentorship programs are needed to help future students become fully educated about the degrees they decide to pursue before enrolling. An August 2015 study from the Federal Reserve Bank of St. Louis looked at how college degrees affected a person’s income and ability to manage financial hardships such as the recession. They analyzed data from 1992 to 2013 to determine trends, reporting wealth and income correlations with racial and ethnic groups.

They found that regardless of skin color or ethnicity, the median net worth of families headed by someone with a four-year degree was 3.6 to 9.8 times larger than families headed by less-educated persons. However, when it came to race, the landscape looked a lot different in terms of handling recessions.

Asians and Caucasians who had four year degrees withstood economic recessions better than their uneducated counterparts and typically accumulated more wealth over the long run. Blacks and Hispanics fared worse. The study concluded that Hispanic and black families with degrees typically fared “significantly worse” than those without degrees. College-educated Hispanic and black families experienced declines in wealth during and after the economic collapse of 2008.

The higher education system in the United States has been continuously scrutinized for not doing enough to provide opportunities for minorities. This is an easy narrative to blame for all the problems. The reality is much more complex. Racism does affect mental health and has led to many problems in society that affect economics and social welfare but there is still much unknown according to the study.

The U.S. must fund more studies and strategize better on how to deal with these imbalances. Further research is needed to understand why there are such disparities in wealth among racial and ethnic groups.

– Adnan Khalid

Sources: Center on Education and the Workforce, Federal Reserve Bank of St. Louis
Photo: Rainbow Educational Consulting

Income Inequality in 2014

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The World Economic Forum (WEF) meeting is occurring in Davos, Switzerland and there is one issue that is being presented as one of the largest challenges that has to be faced in the coming years.  Income inequality around the world is rising and experts say that it is going to become an explosive issue as time goes on.

Oxfam recently released an article that puts into startling perspective how significant an issue income inequality is becoming. Oxfam found that the 85 richest people on the globe have as much collective wealth as the poorest half of the world.  This is a staggering statistic. Oxfam goes on to point out that the richest one percent of the world holds an accrued wealth of $110 trillion dollars, while the 3.5 billion poorest people in the world posses roughly the same amount.

Oxfam’s report also pointed out that in the United States, the wealthiest one percent captured 95 percent of post financial crisis growth since 2009, while the bottom 90 percent have become poorer. The report goes on to point out how the wealthy have taken advantage of their wealth and created tax havens and other political means to ensure their wealth remains unaffected.

The Huffington Post released a report in which it found that the U.S. has the worst income inequality in the world. It cited the tax code as a huge reason  for the massive income inequality bracket in the U.S. The report also highlighted Wall Street as a reason for the U.S. having the world largest income inequality range. “The same politicians that have busily been slashing taxes on the wealthy have also been loosening fetters on banking, allowing the financial sector to swell to bloated size and mop up ever-more income while contributing ever-less back to the economy.”

Oxfam’s Executive Director, Winnie Byanyima, issued a statement saying, “Widening inequality is creating a vicious circle where wealth and power are increasingly concentrated in the hands of a few, leaving the rest of us to fight over crumbs from the top table.” She went on to say that with the WEF having income inequality as a hot button issue, the attendees will work personally to make sure that they are not taking advantage of various tax breaks and things of that nature as well.

The WEF is a amazing opportunity for many of the world leading figures to come together and begin to try and sort out many of the issues that plague our society.

– Arthur Fuller

Sources: Business Insider, Huffington Post, Huffington Post, Oxfam
Photo: WTW

5 Richest Countries vs. 5 Poorest Countries

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With the holidays quickly approaching, everyone is sharing what they are grateful for. Family, friends and jobs top the lists of many individuals. And the holiday spirit has many people anxious to give to the less fortunate. In the global arena, many developed nations possess greater resources than their less fortunate neighbors. Here’s a list of the five richest countries and their five poorest neighbors:

Richest Countries

1. Qatar

The Arab state is the largest exporter of oil and natural gas with a GDP per capita (PPP) of $105,091. It only has 2 million residents.

2. Luxembourg

Despite its small size, Luxembourg is the second richest country in the world with a GDP (PPP) of $79,593.

3. Singapore

Located in southern Asia, the country has a GDP (PPP) of $61,567 and a population of 5 million residents.

4. Norway

The country has a GDP (PPP) of $56,663, earning the majority of its wealth from petroleum, natural gas and fresh water reserves. It is also the least dense European country.

5. Brunei

The country boasts a GDP (PPP) of $55,111 with most of its revenue derived from its reserves of crude oil and natural gas.

Poorest Countries

1. Eritrea

Located near the Horn of Africa, the country has a GDP (PPP) of $792.13. It has a fast growing economy compared to its neighbors.

2. Liberia

The West African country’s instability due to past civil wars has caused the GDP (PPP) to stagnate at $716.04.

3. Burundi

Violence in the region plays a dramatic role in the country’s economy which has a GDP of $648.58. Inhabitants of the region often face corruption, poor education and AIDS.

4. Zimbabwe

Like many African countries, Zimbabwe’s economy has taken continual hits. The country currently has a GDP (PPP) of $589.46 and attracted attention in the past due to human rights issues in the past.

5. Democratic Republic of Congo

The Democratic Republic of Congo currently has the lowest GDP with $394.25 per capita. The second largest country in Africa has potential to greatly benefit from its mineral reserves and land for agriculture but its economy continues to be effected by violence in the region.

– Jasmine D. Smith

Sources: Top 10 Always, The Richest
Photo: Trulia

The Widening Gap of Global Inequality

poverty-reductionThe gap between rich and poor is widening. It takes money to make money, and so inequality is becoming exacerbated as the rich get richer.

Rising inequality has impeded efforts to eliminate global poverty. With a greater share of wealth being captured by those in the highest income bracket, the amount reaching the lowest is continually decreasing. Two nations with equivalent GDP growth rates could have drastically different levels of poverty depending on income equality. For example, in India, the net worth of 46 billionaires is $176 billion. This number represents 12% of the GDP of India, as opposed to 1% fifteen years ago. Half of that amount would be enough to eliminate absolute poverty in India.

The irony of this unchecked growth of the upper classes is that eventually it can result in a restriction of growth. Extreme inequality slows the development of markets and limits investment opportunities for the poor. Inequality also diminishes the political power of the poor. This skewing of power can reduce government efficiency and allow for tax evasion by the wealthy, limiting the government’s ability to invest in necessary infrastructure to sustain growth.

If we’re to see success in the fight against global poverty, then rising equality must be allowed to play its part.

– David Wilson

Source: The Guardian
Photo: Global Post