National Wealth of My Country.
✅What is meant by the national wealth of a country?
The national wealth of a country refers to the country's total value of all the assets owned by its businesses, citizens, and government as well. This includes all tangible assets like land, buildings, infrastructure, and financial assets (bonds, stocks, savings, and natural resources like (mineral, oil, and gas). It also includes intangible assets like intellectual property, education, and skill.
National wealth is very important in a country as it is what is used to determine how rich a country is in terms of economic development and prosperity of the country. It differs from GDP, which only focuses on the yearly production of a country since it represents the accumulated assets of a country over time.
✅ What is the significant national wealth in your country?
In Nigeria, the **Minerals, Oil and Gas are significant national wealth. These are the wealth that Nigeria is highly dependent on which is exported to other countries of the world. Crude oil is a significant wealth that Nigeria is been known for. In Nigeria, we are been blessed with so many mineral resources but crude is what other countries know Nigeria for as it is the crude oil that the government depends on the most.
✅ Why is domestic financial wealth not included in the national wealth?
Domestic financial wealth such as investments, stock holding, and savings is included in the national wealth of a country. Financial assets and liabilities are treated when calculating a country's national wealth The reason it might look like domestic financial wealth isn't included is that financial assets and liabilities tend to be a net out when looking at the wealth of a nation as a whole. Below is how it works.
Financial assets: This includes bank deposits, bonds, stocks, and others when a person while financial assets it means another person holds liabilities. For example, if I own a bond the issuing entity which can be a company or government owes me money which if I am to count it as an asset the issuer will count it as a liability.
In summary, while financial wealth is included in national domestic financial assets and liabilities often balance both, which is the reason why the focus tends to be always on tangible and foreign assets when assessing or looking at a country's national wealth.
✅What to do to prevent the maintenance and waste of national wealth?
To prevent the maintenance and waste of national wealth, a country can adopt several strategies that ensure the sustainable use and growth of its national assets. Below are some of the measures that a country should take.
- Regulate resource extraction
- Invest in environmental conservation
- Maintain and upgrade infrastructure
- Promote education and skills development
- Avoid excessive borrowing
- Invest in productive assets
- Support entrepreneurship and innovation
- Ensure stability in the financial sector.
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@shiftitamanna
You have highlighted land, infrastructure, natural resource assets as well as intangible assets such as education and intellectual property. National wealth is important because it represents the country’s long-term assets,
In Nigeria, minerals, oil and gas are important components of its national wealth, especially crude oil, which is a major export and the foundation of the country’s economy.
To safeguard national wealth, one must invest in education, upgrade infrastructure and avoid wasteful practices.