Jun 05 2018

Turkey’s millionaires taking lion’s share of wealth

The increasingly unequal distribution of wealth in countries including Turkey as one of the sources of their problems, Marxist economist Michael Roberts said in a recent blog post.

Citing a report by Johannesburg, South Africa-based think tank New World Wealth, he said that high net worth individuals (HNWIs), or those worth over $1 million, owned 52 percent of Turkey’s total wealth.

“The most unequal countries in the world are Saudi Arabia, Russia, Nigeria, Brazil, (and) Turkey – and these are probably the most corrupt (relative to any ‘rule of law’),” Roberts said.

“The inequality wealth ratio is 36% for the US and the UK, 40% for China and 48% for India against a worldwide average of 35%.”

In contrast, Japan (23%), New Zealand (26%), Norway (27%), Australia (28%), Canada (28%), Germany (28%), Sweden (28%), Denmark (29%), South Korea (29%) and Finland (29%) were the world’s most equal countries in terms of the proportion of the wealth owned by non-HNWIs.

The New World Wealth report said that wealth growth in Turkey was minus 6 percent in 2017, and highlighted how over the last two years, over 11,000 HNWIs have left the country.

“These outflows are very concerning as Turkey is not producing many new HNWIs to replace the ones that are leaving,” the report said.

“As a result, the total number of HNWIs living in the country is declining all the time.”

Istanbul was also cited in the report as the top world city from which HNWIs were emigrating.