Millionaires and Billionaires Around the World

The number of millionaires in a country indicates the opportunity for wealth accumulation, the dynamism of the economic system and the overall standard of living enjoyed by everyone.

These are the top 20 countries of millionaires in 2010, ranked by the proportion of the population with $1 million USD or more in wealth:

1. Singapore, 15.5%
2. Switzerland, 9.9%
3. Qatar, 8.9%
4. Hong Kong, 8.6%
5. Kuwait, 8.5%
6. United Arab Emirates, 5%
7. United States, 4.5% (5.2 million millionaire households)
8. Taiwan, 3.6%
9. Israel, 3.4%
10. Belgium, 3.1%
11. Japan, 3%
12. Bahrain, 2.6%
13. Ireland, 2.3%
14. Netherlands, 2.3%
15. United Kingdom, 2.2%
16. Oman, 2.1%
17. Saudi Arabia, 2%
18. Denmark, 1.7%
19. Australia, 1.6%
20. Canada, 1.4%

The United States stands out in the top ten for the size of its population. The other top ten all have much smaller populations. All of them are under 10 million, with the exception of Taiwan (23 million) and Belgium (slightly over 10 million). By contrast, the American population is over 313 million in 2011. The United States has the third highest population in the world, making its placement in the top ten in millionaire concentration particularly striking. It is indicative of the significant opportunity for wealth accumulation enjoyed by Americans, relative to most other countries.

Conspicuously absent from the top twenty is China, the second largest and soon-to-be largest economy on earth. This is a function of the extremely high inequality in the Chinese economy. Despite its massive size, not even 1.4% of the Chinese population enjoy $1 million in wealth.

According to the Boston Consulting Group, total global wealth stands at about $122 trillion. Of this wealth, 39% is owned by just 0.9% of global households. There are a total of 12.5 million households in the world with $1 million or more in wealth. And of these households, close to half--5.2 million--are in the United States.

These are the countries with the most billionaires, in 2011:

1. United States, 412 billionaires
2. China, 115
3. Russia, 101
4. India, 55
5. Germany, 52
6. Turkey, 38
7. Hong Kong, 36
8. UK, 33
9. Brazil, 30
10. Japan, 26

And these are the top ten cities with the most billionaires:

1. Moscow, 79 billionaires
2. New York, 59
3. London, 41
4. Hong Kong, 40
5. Istanbul, 36
6. Mumbai, 21
7. Sao Paulo, 21
8. Taipei, 19
9. Los Angeles, 19
10. Beijing, 19

A high concentration of millionaires comes from a number of factors. It certainly helps if a country has a relatively small population, as each additional millionaire will increase the proportion significantly. A culture that values enterprise and the pursuit of wealth accumulation for everyone--not just a small group--is important. The private marketplace is essential to give individuals the freedom and opportunity to pursue financial success.

Government also plays an important role, from education to infrastructure to regulation. Singapore, the country with the highest proportion of millionaires, has a government famous for its benevolent authoritarianism in economic affairs. It features, among other things, mandatory retirement accounts for many workers, potentially instilling a strong sense of thrift and saving, qualities which are essential to financial prosperity.

Almost all of the countries on the millionaire list are known for their effective government policies and robust and dynamic economic system. By contrast, the list of countries with the most billionaires features more diversity. India, which has a government far more affected by corruption than Germany, nevertheless has slightly more billionaires.

Billionaires are exceedingly powerful in their industry or sector, and enjoy wealth that is not typical even of the very rich. Thus they do not necessarily represent the economic system's ability to deliver wealth to large numbers of people, but rather isolated pockets of massive opportunity in the system.

The intersection of cultural values, effective government policies, and private initiative, has a significant impact on the wealth of a population. Learning about the successes of wealthy nations can help us understand the underlying causes of prosperity.