The Forbes list of billionaires for this year recently came out. I checked – I wasn’t on it. That wasn’t a surprise. Nor was it a surprise to see who topped the list. Bill Gates still holds the lead with $56 billion with Warren Buffett not far behind. But there were some surprises on the list. For example, number three – Carlos Helu of Mexico – came up just short of Gates and Buffett at $49 billion. Helu’s fortune comes largely from his telecom investments. Helu’s $49 billion is $19 billion more than he had last year. Perhaps even more impressive is that Helu’s $49 billion is nearly 6% of Mexico’s GDP! ($840 billion according to the IMF).
Kazakhstan was also noteworthy with five Kazakhs making the list including the Presidents daughter and son in-law. Vladimir Kim was tops among Kazakhs at $5.5 billion, earned mostly through his mining ventures. When taken together, these five Kazakhs control $13.1 billion, or 15.5% of Kazakhstan’s GDP ($84.5 billion according to the IMF).
The unequal distribution of wealth in Kazakhstan and Mexico is troubling. Mexico is one of capitalism’s best responses to Chavez in Latin America. But such wealth inequality makes it a harder sell. Fuel prices have brought Kazakhstan to the world’s stage. The need for investment by western corporations has forced some reforms, but much more is needed.
Wealth distribution is certainly a struggle for many countries, the U.S. included. As countries strive for prosperity, close attention should be paid the outcomes. The goal, of course, is for all citizens to enjoy the fruits of prosperity. The Forbes list hints this may not be the case, especially in developing countries. I am sure that further inspection of the Forbes list will reveal other surprises.
Published Date: March 12, 2007