The number of billionaires in China and Pakistan are quite shocking if you look at the discrepancy between the two countries. China has 1011 billionaires, while Pakistan has only 11. The Chinese economy continues to boom, with its gross domestic product growing 7% in the first quarter of 2015, while its per capita GDP was $8,152 in 2014. In contrast, Pakistan’s GDP grew by 3% in 2014 and its per capita GDP was $1,460 that same year.
Here are two countries with similar populations
According to the most recent figures, China is home to nearly 1.4 billion people while Pakistan has a population of over 200 million. Despite this similarity in size, there is a shocking discrepancy in the number of billionaires between these two countries. In 2018, Forbes ranked China’s richest man as worth $25.8 billion while it was difficult to find any Pakistani individuals on their list of the world’s top 500 billionaires. With such an astonishing difference in wealth, one can only wonder what accounts for this disparity? Is it simply because one country has more natural resources than the other? Or is it that one country invests more into education or healthcare than the other?
Yet, there are huge differences when it comes to numbers of billionaires
There are a few factors that contribute to the discrepancy between the number of billionaires in China and Pakistan. For one, the overall population sizes are vastly different; with over 1.3 billion people, China's population is nearly four times that of Pakistan's. Additionally, the GDP per capita is much higher in China than in Pakistan; in fact, it is more than eight times higher. This means that there are more opportunities for wealth accumulation in China.
Let's look at some other stats
According to Forbes, there are 2,095 billionaires in the world. Of these, 140 are in China and only 7 are in Pakistan. That's a discrepancy of 133 billionaires! How can this be? The answer is relatively simple. China has one-fifth of the world's population while Pakistan has nearly one-tenth, but the per capita wealth gap is much higher in China than it is in Pakistan because income inequality is greater in China.
But what does this mean in the long run?
There are a number of factors that contribute to the discrepancy in the number of billionaires between China and Pakistan. For one, the population size difference is significant, with China's population being almost four times that of Pakistan. Additionally, the GDP per capita is much higher in China than in Pakistan, meaning that there are more people in China with the disposable income to become billionaires.
Here’s my prediction!
There are a few reasons why there might be such a discrepancy in the number of billionaires between China and Pakistan. Firstly, the population size is massively different, with China having almost 1.4 billion people compared to Pakistan’s population of just over 200 million. This means that even if both countries had the same billionaire to citizen ratio, there would still be more billionaires in China. Secondly, whilst China has undergone rapid economic growth since it opened up its economy in 1978, Pakistan has experienced economic difficulties due to terrorism and military coups. Thirdly, there have been significant fluctuations in the stock market which affect a country’s ability to generate wealth quickly (e.g.: Hong Kong). Finally, corruption levels differ greatly between the two countries: China has made significant progress towards tackling corruption whereas Pakistan has seen no progress at all.
What do you think will happen 10 years from now?
In ten years time, the discrepancy in the number of billionaires between China and Pakistan is likely to increase. This is due to a number of factors, including the continued growth of the Chinese economy and the increased concentration of wealth within the country. Additionally, Pakistan is likely to see a decrease in the number of billionaires due to political instability and economic stagnation. Furthermore, there will be an increased disparity because fewer people are able to climb out of poverty and into the upper-middle class, which is needed for one to become a billionaire. Lastly, the ratio of billionaires to middle-class citizens will be decreasing in Pakistan while it will continue increasing in China.