The way that nations present their accounts is badly flawed. The balance sheet figures, which are critical to the understanding of the health of an country, are not are readily available.
In a recent report, the UN has taken an interesting approach in valuing the assets of 20 countries. In addition to the assets normally appearing on the balance sheet, each country’s human capital and natural resources are included. This makes for interesting reading. It gives one a better idea of whether politicians are investing the country’s natural wealth into its people.
The data reflects the position in 2008. At the head of the table in aggregate wealth is the U.S. at about 10 times its GDP at the time. Japan, with its limited natural resources, has invested heavily in it’s people, and so heads the list in per capita wealth.
Let’s hope our leaders take note.