What do we mean when we say the “changing wealth of nations”?
Human Capital (which is the value of future incomes for the labor force) accounts for two-thirds of the wealth of nations. This means that natural capital such as energy, mineral, land and forests will not be the only indicators of how rich a country is, but will expand to include its people!
Chart: Economic Development and the Composition of Wealth
The composition of wealth fundamentally changes with economic development. Natural capital – energy, minerals, land and forests is the largest component of wealth in low-income countries.
