These 6 Charts Show How the World is Improving
View the high resolution version of today’s graphic by clicking here.
It only takes a few minutes of cable news to get the feeling that the world is heading into a tailspin.
Endless images of homicide investigations, natural disasters, car crashes, and drug busts fill the airwaves on a daily basis. It’s upsetting – but also certainly captivating for the average viewer.
In fact, the news cycle thrives on fear and violence, so mainstream networks find a way to fill up 99% of programming with these singular events. It’s addicting and sometimes anger-inducing, but is it representative of what’s really going on in the world?
Good News Happens Slowly
Today’s infographic comes to us from economist Max Roser of Our World in Data, and it highlights six megatrends that show that in many important ways, our world is improving drastically.
The one commonality of these six indicators? They all happen slowly and incrementally, but are more evident with a long-term perspective.
Each family lifted out of poverty, each classroom that gets built, and each village gaining access to basic vaccinations may not seem significant on a scale of billions of people – but over decades, these gains add up to create a richer, more educated, and healthier world and a very powerful statistical story.
Six Global Trends
Here are the six big picture trends pointed out by Roser, using data collected over hundreds of years:
1. Extreme Poverty
The portion of people in extreme poverty – making less than $1.90 per day – has dropped like a rock over the years. Back in 1940, about 75% of the world was in extreme poverty – today, that number is just 10%.
The most potent recent example of this is China, where access to free markets have enabled 700 million people to be lifted out of poverty in just over 20 years.
It’s also worth mentioning that statistics for this category are done using inflation-adjusted international dollars, which take into account inflation over time as well as exchange rates. Non-monetary forms of income are also included in the calculations.
2. Basic Education
In 1820, only a privileged few were able to get basic schooling. Since then, millions of classrooms and schools have been added around the globe, and the numbers are staggering. In relative terms, we’ve gone from 17% of people having a basic education to 86% today.
Here’s a more detailed breakdown of this, also from Our World in Data:
Following a similar trend line as basic education, literacy has risen from 12% to 85% over roughly two hundred years. In absolute terms, these numbers are even more impressive. In the 1820s, there were only about 100 million people that could read that were 15 years or older. Today, the number stands at 4.6 billion.
While the world has been having some short-term setbacks when it comes to freedom and democracy, the overall trend line is still impressive over the long run.
In 1900, only 1 in 100 people worldwide lived in a democracy – and today, the majority (56 in 100) can say they live in a country with free and fair elections.
Vaccinations for diseases like whopping cough, tetanus, and diphtheria were unavailable for most of the 200 year chart. However, today around 86% of people globally are vaccinated against these basic and devastating illnesses.
6. Child Mortality
Even as far back as 1920, it used to be that over 30% of infants would die before they hit their 5th birthday.
Since then, developments in housing, sanitation, science, and medicine have made it so that death is a much rarer occurrence for the youngest people in our society. Today, on a global basis, child mortality has been reduced to 4%.
Map: Cities With the Most Ultra-Rich Residents
What cities are the world’s ultra-rich flocking to? This map looks at ultra high net worth individual (UHNWI) growth rates in cities around the world.
Mapped: The Cities With the Most Ultra-Rich Residents
As of 2018, there is a grand total of 198,342 ultra high net worth individuals (UHNWIs) globally with assets over US$30 million, according to the most recent edition of Knight Frank’s Wealth Report.
Although these millionaires and billionaires can be found all over the globe, the reality is that most of the world’s ultra-rich population tends to congregate in world-class cities.
Generally speaking, UHNWIs are looking to live in places that are conducive to safeguarding and growing their wealth, but that also give them access to top-end amenities that allow them to live comfortably and luxuriously.
Top 10 Cities for the Ultra-Rich
To start, we’ll look at a list of global cities, organized by expected number of UHNWIs in 2023:
|Rank||City||UHNWIs (2018)||UHNWIs (2023e)||Change (%)|
|#4||🇺🇸 New York City||3,378||3,891||15.2%|
London continues to top the list, with a roster of 4,944 ultra-rich residents today and the projected growth over the coming years to eclipse the 6,000 mark by 2023.
Tokyo has the second highest amount of UHNWIs today, but the city is adding them at a slower rate than other rival cities. As a result, Singapore will move into the #2 spot overall by 2023, with an expected total of 4,393 high net worth residents.
Finally, it’s worth noting that only two cities on the top 10 list are expected to see growth above a 30% clip over this five-year period. Shanghai and Beijing could be cities to watch for decades to come, as they add millionaires and billionaires at a faster rate than any of the other heavyweights.
Fastest Growing Cities
Where are the billionaire meccas of the future?
Here are the 10 cities that are expected to add UHNWIs the fastest between 2018-2023:
|Rank||City||UHNWIs (2018)||UHNWIs (2023e)||Change (%)|
|#9||🇲🇾 Kuala Lumpur||376||496||31.9%|
Not surprisingly, all 10 of these cities are located in Asia.
Two Indian cities (Delhi and Mumbai) top the list, and are likely to add nearly 40% to their ultra-rich populations over the next five years. China also has a strong showing here.
Interestingly, just missing the above top 10 were a few non-Asian cities: Auckland (#11), Madrid (#12), Munich (#13), and Nairobi (#14) are all expected to grow their UHNWI populations by roughly 25% by 2023.
Unlocking the Power of Women in Investing
Women are better at saving money, but invest less of it – this infographic looks at the specific needs of women in investing and how to better serve them.
Unlocking the Power of Women in Investing
The financial services industry is undergoing a dramatic shift.
The next generation of investors will be younger and much more diverse, with women taking an increasingly prominent role in building and growing family and personal wealth.
Today’s infographic comes to us from New York Life Investments, and it showcases how this new paradigm will shape the future of products and services on offer in the industry, as well as how wealth managers can cater to these changing needs.
Growing Economic Might
Women are underrepresented in the investing world, but this is changing fast. While various cultural and societal reasons are contributors to this, there is also a more simple driver: rising economic might.
- Women-controlled wealth in the U.S. will increase from $14 trillion to $22 trillion between 2015-2020
- Women control 51% of all personal wealth in the United States today
- Women are set to inherit $28.7 trillion in intergenerational wealth over the next 40 years
Women are becoming more important drivers of income and wealth for their families, as well:
- Women are now the primary breadwinners in 40% of U.S. households – a 4x increase from 1960.
- Women own 30% of all private businesses in the U.S.
- Women now hold the majority of management, professional, and related positions (52%)
Finally, women now make up the majority of recipients of Associate’s degrees (61%), Bachelor’s degrees (57%), Master’s degrees (60%), and Doctoral degrees (52%) in the United States.
The Wealth Management Gap
As women increase raise their level of economic influence to new levels, how will they manage this wealth?
Interestingly, studies show that women think about money and wealth differently than men – and differently from precedents already set in the financial services industry:
|The Good News||The Bad News|
|Women are better savers, saving 9.0% of their salary in comparison to men (8.6% of salary)||Women consistently tend to score lower on financial literacy tests|
|Some research points to women generating better returns (+0.4%) off of investments||Some research points to women investing up to 40% less than men|
Data from a recent survey by New York Life Investments sheds light on why women may be underserved by the financial services industry.
Reasons why women switch financial advisors:
- 33% poor performance
- 29% lack of personal connection
- 27% poor customer services
In other words, women don’t switch investment advisors simply because of poor performance – there are other, more complex factors involved. Part of this is likely because 62% of women say they have unique investment needs and challenges:
Perceptions of women and investing:
- Financial professionals treat women differently – 40%
- Women feel patronized by financial advisors – 36%
- Financial advisors are less likely to listen to investing ideas from a woman – 30%
- Financial advisors push women out of financial conversations – 28%
- Women have less access to financial education – 26%
- Financial professionals find it hard to relate to women – 26%
- Financial advising is a man’s world – 24%
A Deeper Dive
It is crucial for advisors to understand that women are not one large, homogeneous group.
In fact, research shows that there are four unique segments of women that each approach investing differently – and they all have different sets of needs.
Stay tuned for Part 2 of this infographic series, which will detail the differences between these segments.
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