Anatomy of the Global Wealthy – IMC-RP 2024/1

ABSTRACT

In recent decades, the global economy has generated substantial wealth associated with trade integration, financial mobility and pathbreaking technological innovations (internet, artificial intelligence, robotics and blockchains) creating a new class of millionaires, ultra-millionaires, and billionaires of different age-cohorts. The distribution of the economic gains associated to these processes, however, is far from even and we live in a world of destabilizing inequality. Demographic factors such as the irruption of the Millennials and Generation Z are changing patterns of investment tilting them towards crypto-currencies and real estate while Generation X and Baby Boomers prefer stocks, bonds, and real estate. These differences are likely to be replicated in the coming decades as a massive wealth transfer from older to new generations is already starting to take place. High-net-worth individuals (HNWIs) are sensitive to economic and political uncertainty and perceived threats on property rights. Investment Migration Programs, Digital Nomad Visas and Visas for Persons of Independent Means are ways increasingly used by governments around the world to attract investors and mobile professionals. The paper examines main analytical and policy issues related to these global trends.

Dr Andrés Solimano, Chairperson, Investment Migration Council, Switzerland