Countries around the world have always tried to create as much wealth as possible. This wealth helps them develop their economy and improve the living standards of their people.
Certain factors, such as exploiting natural resources and having skilled labour, help countries create more wealth. However, other factors, such as underdeveloped transport and communication infrastructures or scarce natural resources, can limit or hinder wealth creation.
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Wealth Creation
This means that wealth is very unevenly distributed around the world. Some countries have a lot of wealth while others have very little.
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The Inequality of Wealth Distribution
Tools have been created to measure the level of wealth of a country. They make it easier to assess and understand wealth distribution from one country to another, and also within a country. The main tools are:
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Gross Domestic Product (GDP) and Gross Domestic Product per Capita
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Gini Index
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Human Development Index (HDI)