Hello, friends welcome to my post in which I have discussed National Wealth of My Country. as part of my participation in this 👉contest organized by @shiftitamanna
✅What is meant by the national wealth of a country?
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What I understand by the national wealth of a country refers to the value of all the assets that are owned by residents, both private and public. These assets include physical assets such as; infrastructure, buildings, and natural resources and also financial assets such as bonds, debentures, stocks, and even savings. National wealth is crucial in a country as it is what is used to determine the economic strength of a country.
National wealth differs from a country's gross domestic product (GDP), which reflects the economic activity over some time which is usually yearly, whereas national wealth on the other hand represents the accumulated value of assets of a country at a given point in time.
✅ What is the significant national wealth in your country?
Nigeria is one of the countries that is so blessed with natural resources that we have turned some into national wealth. Crude oil, Crude Oil; Coal; Tin; Columbite are the significant national wealth in Nigeria.
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In Nigeria, the Oil sector provides for 95% of Nigeria's foreign exchange earnings and 80% of Nigeria's budgetary revenues. In Nigeria, crude oil, tin, coal, columbite, and natural gas are the most economically valuable minerals that generate huge revenue into the country's Federation account. Crude oil which was discovered in the,1957 is the most valuable resource of Nigeria's foreign exchange and government revenue which the government doesn't joke with.
✅ Why is domestic financial wealth not included in the national wealth?
Domestic financial wealth is included in the national wealth, which is based on certain considerations. To make this more understandable below are some of the reasons why we think domestic financial wealth is not included.
Double counting of financial assets:
Financial assets such as bank deposits, bonds, and stocks, are claimed on other economic entities which can be government or individual entities, if there were to be inside without adjusting there would be an issue or double counting since such categories of assets are part of national wealth.Net financial wealth:
Net financial wealth is the total value of financial assets that are on the residence of a country minus the debt (liabilities) they owe which is only considered as net financial wealth in national wealth. The reason for this is to prevent overestimating the wealth of the country but account for the obligation.Domestic and Foreign Asset:
Both claims on foreign assets and domestic financial assets are all included in national wealth, but what a country owes to others which is liabilities aren't included the reason is to calculate the only net value of the financial asset of a country.
✅What to do to prevent the maintenance and waste of national wealth?
The things to do to prevent the maintenance and waste of national wealth are:
Efficient use of resources. The government needs to adopt sustainable methods in industries such as construction, energy, and agriculture to help minimize resources. Also recycling, reusing, and repairing materials to reduce waste need to be encouraged.
Good fiscal policies. The government should avoid borrowing loans and encourage savings and investment a policy that promotes domestic savings and investment in productive sectors needs to be encouraged.
Maintaining and upgrading of infrastructure. There should be regular maintenance and upgrading of infrastructures to prevent deterioration which can require more money to get them repaired. Also, investment in modernized infrastructure can help you reduce waste.
By implementing the few strategies and measures that I have discussed above, the national wealth of a country can be preserved, and sustainable growth can be achieved as being reduced.
I am inviting: @dove11, @simonnwigwe, and @dave-hanny