18 Jan Argentina is among the countries with more billionaires by inheritance
Argentina is among the countries with more billionaires by inheritance
According to a research by the Peterson Institute for International Economics, eight out of ten rich people inherited their fortunes. However, what is the main source of wealth in other parts of the world?
Working tirelessly does not seem to guarantee a fortune in Argentina, but having the right surname certainly does. This is demonstrated by a recent study by the Peterson Institute for International Economics (PIEE), which analyzes the origin of large fortunes around the world. According to the entity, 80 percent of these wealthy people inherited that status, placing it among the countries with the most billionaires by inheritance, after Kuwait (100%), Finland (100%), and Denmark (83%).
This survey divides the sources of wealth into two categories: one, by inheritance; and the rest, by one’s own efforts. Within the latter, the PIEE identified those who amassed their fortune by founding a company, by being business owners or executives, by having political connections, or by belonging to the financial sector.
In the country, the 20 percent who did not inherit their wealth did so by working in finance. Along with local heirs, this group is part of the 0.3 percent of billionaires who inhabit the planet. In the region, Chile and Peru are home to more wealthy people than Argentina, with a share of 0.7 and 0.5 percent, respectively, of the global fortunes.
Brazil, with 3.9 of the world’s richest people, has a variety of reasons for its wealth. In the tropical country, some 48 percent of billionaires inherited fortunes; another 21 percent made it by founding a company; 8 percent made a smart buyout or got a well-paid executive position; 5 percent exploited their political connections to turn them into money, and 18 percent made millions from the financial sector.
Just as Argentina is almost a mecca for heirs, other countries are known for having billionaires whose wealth comes from the same source. For example, 100 percent of the rich people in countries like New Zealand, Macao, Vietnam, Nepal, and Uganda belong to the financial sector. Meanwhile, something similar is happening in Georgia, Kazakhstan, and Angola, whose wealthiest personalities made their fortunes through political connections.
In Tanzania and Swaziland, the same rule applies in relation to the ownership and management of companies. On the other hand, Algeria and Lithuania have a population of rich people who are connected to the founding of companies.
Worldwide, 30.4 percent of billionaires inherited their fortunes; another 27.7 percent inherited their fortunes after founding a company; 9.3 percent inherited their fortunes when they bought or ran a company; 11.3 percent inherited their fortunes because they had the right political connections, and the remaining 21.3 percent inherited their fortunes doing business in the financial sector.