World Bank study - ‘Intangible’ wealth rating is impressive

IN THE World Bank’s wealth of nations study in 2005, Ireland ranked as one of the wealthiest countries per capita, not because we have so much in terms of natural resources or produced capital, but because of our store of what it terms “intangible capital”.

This includes the trust of people in society, their confidence in property rights, the judiciary, effective government and the educational system.

People may be critical of politicians and judges, but their criticism usually evaluates them against perfection, rather than in comparison with other countries. By that token, Ireland fares very well and the education of our people is one of the significant components of intangible capital.

The number of parents saving for their children’s future is particularly impressive.

At present 44% of parents are saving to cope with costs as their children get older. This is particularly significant as the need for and the cost of third-level education continues to grow.

Half of all parents save some of their child benefit payments for their children and 39% save all of those benefits. Saving schemes that encourage parents to save for their children should be highlighted and encouraged, because this is the foundation of our future.