This list of the richest governments in the world should have nothing to do with the purchasing power of individual citizens, as money belonging to the people should remain separate from money belonging to the government.
A rich government should also have a country with a solid economy, able to generate wealth for at least a few years, which would guarantee that the government would not go broke if there was a period of recession. With the above-stated criteria, here are the richest governments in the world.
Governments are known to be very wealthy, and people who are usually in government rarely have a complaint of economic recession. If the government of a country is suffering setbacks when it comes to finances, then such government cannot take good care of its country no matter how hard they try.
Some governments also dwell on grants to take care of the affairs of the country that has elected them into power, while some governments depend on their own statistics and wealth to sustain the economy of their countries.
This article will strive to give detailed definitions and illustrations of every government which would be mentioned below, and who exactly runs the government.
Richest Governments in the World
1. The Government of Norway
The government of Norway has a Sovereign Wealth Fund that has put away $1,364,130,000,000 which generates revenue for the government. This is a sovereign wealth fund is called the Norway Government Pension Fund Global which is invested in several sectors around the world.
The economy of Norway is still quite dependent on oil exploration, however, it is a mixed economy that includes manufacturing, services, agriculture, retail commerce, and so on. The welfare system in the country is the envy of other countries- a result of careful planning and putting the money generated from the sale of oil products produced in the North Sea.
The Government Pension Fund is one of the ways by which the money generated from oil is being put to use to generate more revenue.
2. The Government of China
The Government of China is one of the richest governments in the world. They have a sovereign wealth fund that is worth about $1,222,307,000,000. It is called the China Investment Corporation, and it has several investments in several sectors all across the world.
China, as we all know, is a home to different people from different walks of life and the official language spoken in this country is Chinese, although there are other selected languages from different clans.
The economy of china is a complex one; many of the strategic industries are owned by the government, others are mixed with both government and private ownerships, while there are many local private industries, and foreigners too are welcome to establish private enterprises.
The government of China is well organized; they release a 5-year plan which states the areas of the economy where the government intends to work on in the next 5 years.
3. The Government of Kuwait
The Government of Kuwait is one of the richest governments in the world. They have set aside $692,900,000,000 which is called the Kuwait Investment Authority, which is an investment tool that invests huge amounts of money to several sectors in many different countries.
The economy of Kuwait is a wealthy one, but largely dependent on petroleum. Kuwait is one of the richest countries in the world. Furthermore, the currency of Kuwait; the Kuwaiti dinar is also the highest-valued unit of currency in the world.
4. Hong Kong Government
The government of Hong Kong is one of the richest in the world; they have $585,734,000,000 invested in a sovereign wealth fund which is called the Hong Kong Monetary Authority Investment Portfolio. The investment fund has several investments in several sectors and is not restricted to making financial commitments within its borders.
The economy of Hong Kong is highly developed and diversified. This country has foreign reserves in excess of US $408 billion, and no public debt. The country has a sound banking system, which has made it a financial hub for businessmen and investors all around the world.
5. Government of Saudi Arabia
The government of Saudi Arabia has a sovereign wealth fund that has about four hundred and thirty billion dollars ($430,000,000,000). The fund is located in Riyadh, Saudi Arabia, and has been in existence since 1971.
The economy of Saudi Arabia is solid, although quite dependent on Oil exploration. The country has the biggest economy in the Arab world and the Middle East. Saudi Arabia is one of the G20 countries, and the countries growth through oil has spilled over into other sectors such as the services sector and other industries.
6. Qatar Government
The government of Qatar is one of the richest in the world; the country has a sovereign wealth fund with a massive Three hundred and fifty-four billion dollars ($354,000,000,000) invested in many diverse sectors all around the world. That sovereign wealth fund is called the Qatar Investment Authority.
Qatar’s economy used to be dependent on pearls, but the economy is now buoyed by the oil industry. The government of Qatar controls a great deal of wealth, and there is much more to be made on other sectors of their economy due to the access to the sea.
7. United States Government
The United States is a capitalist economy. All the money is in the hands of investors who operate the free market economy. Most of the richest people in the world are Americans and their companies are valued in billions, and sometimes into the trillion dollar mark.
The United States is the world’s largest economy by nominal GDP. It has the largest concentration of wealth and has the world’s fifth-highest per capita GDP (nominal). The United States government is also one of the richest in the world because they control the dollar which is the currency of international trade.
They also have a dominant say in international politics, as well as in the market of military hardware, artificial intelligence, space technology, and other things. The United States is also the most technologically advanced country in the world.
The economy of Japan is a free market economy; propelled by private investments. Japan is a member of both the G7 and G20. The country has the second largest economy in Asia, only after China. Japan was formerly the second largest economy after America, but the rapid rise of China has caused japan to take a back seat.
Nevertheless, Japan is an important country for so many reasons; some of their major industries are Motor vehicles, electronic equipment, processed foods, machine tools, steel, chemicals, and textiles. Japan is not doing too badly in the area of technology either; they produce digital technology devices, games, mobile phones, and other communication devices.
Japan is known for its rich culture and tradition and even the mode of dressing and speaking has not changed, after colonialism. This country showcases its uniqueness in various ways, from soccer to tennis and other sports in the world. Japan is ranked the eighth richest government in the world.
The government of Germany is one of the richest in the world, as evidenced by its solid economy. Germany is a founding member of the European Union and a major contributor to the financial commitments that buoy the Eurozone. Germany recently recorded the highest trade surplus in the world, worth $310 billion.
Germany is one of the largest exporters in the world. Some of their exports include vehicles, heavy machinery, chemicals, electronic products, pharmaceuticals, and so on.
10. United Kingdom
This country is one place where the best of delicacies is served by the world’s best chefs. The cultural reserve in this country has lasted longer than any other country in the world. The National reserve of this country is estimated at $279 billion.
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The common metric by which a country’s wealth is measured is the GDP (nominal) which calculates the country’s gross spending for the year and then compares it with other countries. This is a flawed metric because it takes no account the fact that some countries may borrow in order to boost their spending, and that may put them heavily in debt, which would be difficult to get out of.
We approached the ranking of the richest governments in the world by their nominal GDPs, and also by the wealth they have in the form of assets that are put to use to generate additional revenue. We have decided not to consider untapped natural resources because estimations about untapped natural resources can be wrong, and also the importance of untapped natural resources may reduce (or increase) dramatically within a short time, and so their value may depreciate rapidly.