Nations with highest per capita income

[K.Karthik Raja]

Nations with highest per capita income

Our India

India's per capita income is almost Rs 40,000 ($950) per year,
according to the latest figures released by the World Bank.

This has been calculated using the World Bank Atlas method that
employs official exchange rates for conversion.

India's per capita income has more than doubled from $460 in 2000-01
to $950 in 2007 due to strong economic growth.

Finance Minister P Chidambaram had recently stated that India's per
capita income could double every 9 years. By 2016-17, the country's
per capita would be at $2,000; and by 2025, per capita would be $4,000
if India grows at 9 per cent.

At $950 per capita income per year, India ranks a poor 160th in the
world.

According to the World Bank categories: Nations with per capita income
(PCI) less than $935 are 'low income;' nations with PCI from $936 to
$3,705 are 'lower middle income;' those with PCI from $3,706 to
$11,455 are 'upper middle income;' and those with PCI from $11,456 or
more are 'high income.'

So which are the world's richest nations, or people, in terms of per
capita income? And where do India's neighbours like China and Pakistan
stand? Read on to find out. . .

1.Liechtenstein

Strange, as it might seem, the World Bank ranks nations, sometimes
without giving their actual per capita income. No explanation is given
by the World Bank, other than a footnote that says: ?2007 data not
available; ranking is approximate.'

However, information gleaned from other sources bears out the World
Bank ranking.

So the nation with the highest per capita income in the world is
Liechtenstein, a small country bordering Switzerland and Austria.
Liechtenstein's per capita income is about $80,000 per annum.

The principality has an industrialised economy, with banking and
financial services being the mainstay. Tourism too is a major revenue
earner for the nation.

The personal income tax rates in Liechtenstein too are exceedingly
low: basic income tax rate is 1.2 per cent on income up to 200,000
Swiss Francs, and maximum is 5 per cent on income over 2 million Swiss
Francs a year.

2.. Bermuda

Bermuda is tourist's delight, located in the North Atlantic Ocean.

Bermuda's per capita income is almost 50 per cent more than that of
the United States. The tiny island nation's per capita income stands
at just above $78,000. It has the second highest PCI in the world.

Bermuda is a major financial centre and is particularly attractive
because of its low taxation rates. Financial services is the nation's
largest industry, followed by tourism.


3.Norway


Norway's per capita income stands at $76,450, which is the third
highest in the world.

Norway has a mixed economy consisting of state-owned businesses and a
robust free market. It's a high developed and industrialized state.
Fishing, petroleum, hydel power, minerals contribute heavily to the
nation's GDP.

4.Luxembourg

Luxembourg's per capita income is at $75,880. That makes it the
world's fourth highest PCI.

Luxembourg is located in Europe and is bordered by Belgium, France,
and Germany.

The nation has highly developed industrial and financial sectors.

5.Qatar

The per capita income of Qataris is $60,000, the fifth highest in the
world.

Qatar is an Arab emirate located in the Persian Gulf.

The nation's economy mainly depends on its huge oil and natural gas
reserves. There is no income tax in Qatar.

6.Switzerland

The Swiss enjoy a financially comfortable life, with a per capita
income of $59,880. Switzerland ranks sixth in the World Bank's per
capita income rankings.

Switzerland, a truly capitalist economy, has many giant banks and
multinational corporations. It also has highly developed industries in
sectors like pharmaceuticals, chemicals, machine parts, electronics,
precision instruments, banking, tourism, etc. Dairy farming too is an
age old industry in Switzerland. It has very low tax rates.

7.Denmark

Denmark's per capita income is at $54,910. According to World Bank
rankings, it is the world's seventh highest PCI.

Denmark has a highly industrialised economy, with robust agricultural
and corporate sectors. Despite being one of the most competitive
nations, the nation has a very weak financial regulatory system. Also,
its labour laws are very lax and tilted heavily in favour of the
employers.

8.Iceland

At $54,100, the per capita income of Iceland is the world's eighth
highest.

Iceland has a very healthy power sector which helps it be a highly
industrialised country. Apart from manufacturing, the nation is also
taking big strides in the fields of software generation,
biotechnology, tourism, and financial services.

9.Cayman Islands

The per capita income of Cayman Islands is more than $48,140 and less
than $54,100, as per World Bank figures. It has the 11th highest PCI
in the world. At number 9 is Channel Islands and in the 10th spot is
Andorra.

The Cayman Islands are situated in the Caribbean Sea. It is a major
financial centre and also one of the world's best known tax havens.

The nation's economic mainstays are tourism and financial services.

10.Ireland


The Irish have a per capita income of $48,140, ranking them twelfth in
the world.

K.Karthik Raja
Research Head



Ireland too has made rapid strides in the field of information
technology. Construction, apart from agriculture, too is an important
part of the Irish economy.