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Super Rich

Chapter · January 2020

DOI: 10.1016/B978-0-08-102295-5.10318-X

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 Super Rich
Sin Yee Koh, School of Arts and Social Sciences, Monash University Malaysia, Bandar Sunway, Malaysia
© 2020 Sin Yee Koh. Published by Elsevier Ltd. All rights reserved.

Glossary
Freeports Warehouse complexes (usually located in seaports or airports) where goods may be handled with less intervention
from taxing and customs authorities.
Inequality paradigm An epistemological approach to the study of inequality.
Structural inequality A condition, built into societal institutions, where one category of people experience unequal status in
relation to other categories of people even in the absence of biased individuals.

In recent years, the super rich and wealthy elites have been receiving increasing academic, policy, and public attention. Riding on the
back of socioeconomic structural changes such as decreased economic growth, global financial crises, increased privatization of
welfare services, depleting public resources, and the implementation of austerity measures, the super rich have been seen as the
key culprit of growing wealth inequalities globally and locally. Moreover, they are seen to occupy or buy up luxurious mansions
and second/holiday homes that they then leave empty most times of the year (therefore driving local housing prices upward);
to evade taxes, and to engage in questionable offshore businesses with the help of professional experts (therefore being unethical
and socially irresponsible); and to actively segregate themselves socially and spatially from the rest of the society (therefore not fully
belonging to the local context). These portrayals of the super rich are especially rife in key cities and destinationsdsuch as London,
New York, Hong Kong, and Monacodwhere their presence and influence are distinctly seen and felt. We have therefore seen public
protests against the “1%” who are seen to have taken away what would have been equitably distributed and enjoyed by the “99%.”
At the same time, there has been an “inequality turn” in the social sciences. Notable contributions such as Thomas Piketty’s
Capital in the Twenty-First Century highlight how wealth, not income, has become the key means through which inequality is perpet-
uated across generations. Think, for example, landed gentry and aristocracy in Britain and Europedor what is referred to as “old
money.” Attention on inequality and the super rich also addresses the rise of new wealth in emerging economies such as China
and India (“new money”) that has led to an expansion of luxury products and services brands into these markets. Alongside the
rise of “new money” is the emergence of an aspiring group of “super rich wannabes” with the financial power to consume and
to live almost like the super rich. In sum, the super rich have become an empirical focus through which scholars think through issues
such as wealth, inequality, elite status, and urban social implications.

Who Are the Super Rich?

We have long been fascinated with the rich, the wealthy, and the affluent. Their material wealth, luxurious lifestyles, conspicuous
consumption, elite status, and mobilities seem to set them apart from the rest of the society. Before the 1970s, the English literature
used the terms “rich,” “wealthy,” and “elite” to describe the rich and wealthy. The emergence of this group of wealthy individuals
and families can be traced back to the second Industrial Revolution in America and Britain during the late 19th to early 20th
Century. With technological advances, industrialization, and urbanization, an urban upper class with disposable income, accumu-
lated wealth, and a desire to consume began to emerge.
In the early 21st Century, Forbes started to publish rich lists ranking the 400 richest individuals in America by their net wealth.
Annual national lists later emerged in various countries, published by the Business Review Weekly in Australia (published as Financial
Review since 2016), The Sunday Times in the United Kingdom, Challenges in France, Canadian Business in Canada, the National Business
Review in New Zealand, and the Hurun Report in China. Since 1987, Forbes started publishing the Worlds’ Billionaires on an annual
basisddemonstrating how the focus on the rich and wealthy has now turned global.
The term the “super rich” started gaining popularity in English literature from the late-1960s; however, there is still no conclusive
agreement about who constitutes the super rich. The most obvious and common way of defining this group is through their mone-
tary wealth. Generally, they are equated to the top 1% of the population in terms of net wealth. However, there are further wealth
segmentations within the category of the super rich. The wealth management industry, for example, has used tiers of investible
assets to classify high net worth individuals (HNWIs) (Table 1).
In addition to monetary wealth, the super rich are also associated with characteristics such as the ability and capacity to generate
and accumulate wealth (either through inherited wealth or newly generated wealth), their elite social status, and their transnational

International Encyclopedia of Human Geography, 2nd edition, Volume 13 https://doi.org/10.1016/B978-0-08-102295-5.10318-X 127

128 Super Rich

Table 1 Classifications of super rich clients in the wealth management industry.

3-Tier classification a 4-Tier classification b 4-Tier classification c

Ultra high net worth individuals (UHNWIs) Ultra high net worth (more than Ultra high net worth (over
(investible assets above US$30 million) US$100 million assets under management) US$100 million private wealth)
Mid-tier millionaires (investible assets The established wealthy (more than Upper high net worth
of US$5–30 million) US$5 million assets under management) (US$20–100 million private wealth)
Millionaire next door (investible assets The emerging wealthy (US$1–5 million Lower high net worth
of US$1 million or more) assets under management) (US$1–20 million private wealth)
– The affluent (US$100,000–US$1 million The affluent (US$250,000–US$1
assets under management) million private wealth)

a
Data source: Capgemini and RBC Wealth Management (2013). World wealth report 2013. Retrieved from https://www.worldwealthreport.com/download/68/b95e0b47.
b
Data source: Boston Consulting Group (2011). Global wealth 2011: Shaping a new tomorrow: How to capitalize on the momentum of change. Boston: Boston Consulting Group.
Retrieved from http://piketty.pse.ens.fr/files/BCG2011.pdf.
c
Data source: Boston Consulting Group (2017). Global wealth 2017: Transforming the client experience. Boston: Boston Consulting Group. Retrieved from http://image-src.bcg.com/
Images/BCG-Transforming-the-Client-Experience-June-2017_2_tcm9-161685.pdf.

mobility. Despite the lack of a consensus on the definition of “the super rich,” scholars have tended to use relative wealth (i.e., top
1%, top 0.5%, or top 0.1% of the population) in their analysis of the super rich.

Engagements With the Super Rich

The Super Rich as an Elite Class
A first strand of investigation concerns the super rich as an elite class. This line of inquiry examines issues such as elite mobilities,
elite social clubs, network ties between super rich individuals, and their power and influence. Scholars have highlighted that while
the elite super rich may live and move within their own spaces, there are occasions when they encounter the 99% in shared common
spaces. Nevertheless, due to their financial power, lifestyle choice, social networks, and their desire for privacy, confidentiality, and
security, the super rich tend to circulate in elite spaces and places that are invisible or segregated from the rest of society. Further-
more, as they enjoy transnational mobility, there is also an argument that the super rich have become a global elite class that is not
tied to any particular local context. The existence of this global elite class raises questions about the meanings and constitution of
citizenship, belonging, obligations, and rights.
While the starting point for analysis of the super rich is often their elite status, others have called for investigations of how the
super rich became wealthy (and therefore attain elite status) in the first place. Some have responded to this call by examining the
mobilities of the capital and power of the super rich. These analyses raise questions such as: How do the super rich lobby for and
protect their interests? How has their elite status enabled them to do so? How have the super rich ensured that their eliteness is
passed on to next generations? What are the ethical and political implications for our societies as the super rich become more
and more footloose and untied to nation states?

The Super Rich and Inequality

There has been much attention on the increasing concentration of global and national wealth in the hands of a diminishing group
of super rich individuals. Fig. 1 shows that global wealth has been increasingly concentrated in the hands of the top 1% and the top
10% of the world population. Furthermore, the number of billionaires holding the same wealth as the bottom 50% of the world’s
population has been decreasing (Fig. 2).
This drastic and sustained shift in wealth concentration and global inequality suggests that there are structural forces at play.
How is it possible that a few individuals are able to amass extreme wealth, while others cannot? What are the factors that contribute
toward unequal access to income, wealth, opportunities, and social mobility? If certain super rich individuals are successful in their
wealth accumulation efforts, does this mean that they are more intelligent, more capable, or more resourceful? What sets these super
rich individuals apart from others who face inequality and the accompanying consequential limitations? If the existence of struc-
tural inequality is unethical and socially unjustified, what can be done to mitigate it?

The Super Rich and the City

As the super rich have been most visible in cities, there has been much work done in urban geography and urban studies on the
impacts of the super rich on local housing markets, super-gentrification, and urban segregation. Due to their transnational mobility,
the super rich are seen to be buying up multiple properties (including second homes and holiday homes) across the world and
leaving them empty for considerable periods of time. Another observation is that these properties are bought for investment
and capital transfer purposes, rather than being used as residential homes, leading to the critique that the super rich have
 Super Rich 129

100%
87.40% 87.70% 89.10% 87.80%
90% 84.30% 85.60% 85.90%
82.80%

80%

70%

60%
50.00% 50.80% 50.10%
46.40% 48.20%
50% 44.20% 45.80%
43.60%

40%

30%
2010 2011 2012 2013 2014 2015 2016 2017

Top 1% Top 10%

Figure 1 Share of global wealth, top 1% and top 10%, 2010–17. Data source: Credit Suisse Global Wealth Databook (2010–17).

450
388
400
350
300
250
177
200 159
150
92 80
100 61
42
50
0
2010 2011 2012 2013 2014 2016 2017
Figure 2 Number of billionaires with the same wealth as the bottom 50% of the world’s population, 2010–14. Data sources: Oxfam International
(2015). Wealth: Having it all and wanting more. Oxfam Issue Briefing. Oxford: Oxfam International. Oxfam International. (2018). Reward work, not
wealth. Oxfam Briefing Paper. Oxford: Oxfam International.

contributed to rising housing prices in certain cities, making housing increasingly unaffordable and unavailable for local residents.
Oftentimes, such critiques are conflated with racist and nationalist discourses against “wealthy foreign buyers.” A counterargument
is that the super rich participate in the luxury properties market, and not in mass market housing. Furthermore, local buyers (both
the super rich and middle class) are as much involved in the housing market as are foreign super rich buyers.
Building upon these works, an emergent research strand examines the financialization of housing and real estate properties, as
well as the active pursuit of super rich capital by cities and governments. This research strand shifts the focus away from the super
rich (as buyer agents) to the structures and political will that enable and facilitate the conversion of fixed real estate into mobile
financial capital. In this portrayal, certain cities with conducive characteristics (e.g., stable political environments, favorable tax
regimes, protection of property rights, ease of capital transfers, global connectivity, etc.) become safe and desirable places to
park super rich wealth. Global cities such as London, New York, and Singapore come to mind. As these cities morph themselves
toward welcoming the super rich, this development raises a question about social justice and the city. Who is the (elite and pluto-
cratic) city ultimately for?

Servicing the Super Rich

Another research strand focuses on the intermediaries, brokers, and agents who service super rich clients. Their products and services
range from lifestyle and personal services, homes and fixed assets, private travel services, investments and legal services, and family
and relationship services (Table 2). What sets their products and services apart from those that are available to the mass market is the
fact that these are customized to the specific needs of each super rich client. Furthermore, some of the services are provided by
professionals who are experts in their respective fields. Therefore, the super rich client would be able to access and benefit from
specialized and tailor-made solutions suiting their needs.
There are two particularly interesting points about this strand of research. The first is the diversity and expansive range of prod-
ucts and services that are made available to the super rich. As wealth becomes increasingly concentrated in the hands of a diminish-
ing group of elites, intermediaries are pushed to introduce new (and oftentimes bespoke) products and services, as well as to create
130 Super Rich

Table 2 Intermediary services for the super rich.

Investments and legal Family and relationship

Lifestyle and personal services Homes and fixed assets Private travel services services services

• Concierge services • Real estate management • Chauffeurs and private • Wealth management • Nannies
• Elite clubs • Tenant management cars • Financial advice • Tutors
• Collectibles (e.g., fine art, wine, • Architecture and interior • Private helicopters • Legal advice • Education and schooling
jewelry) design • Private jets • Tax advice consultants
• Catering and events planning • Surveillance systems • Private yachts • Accounting advice • Matchmakers
• Wedding planning • Insurance products • Super yachts • Immigration advice • Family offices
• Personal assistants • Butlers • Inheritance and wills • Psychiatrists
• Personal trainers • Domestic helpers advice • Counselors
• Personal chefs
• Personal bodyguards
• Personal doctors
• Cosmetic surgery
• Health and medical insurance
Source: The 5 categories are based on Koh, S. Y. and Wissink, B. (2018). Enabling, structuring and creating elite transnational lifestyles: Intermediaries of the super-rich and the elite
mobilities industry. Journal of Ethnic and Migration Studies 44(4), 592–609.

new markets. The second point is that in the process of servicing the super rich, the intermediaries are actively educating and enticing
“super rich wannabes” to utilize their products and services.

The Super Rich and Illegalities

Arguably, tax havens and offshoring activities are a crucial way for the super rich to accumulate and preserve their wealth. The release
of the Luxembourg Leaks (Lux Leaks) in 2014, the Panama Papers in 2015, and the Paradise Papers in 2017 have exposed the illegal
and illicit activities that have been executed by financial and legal firms for their super rich clients and their business entities.
Although tax havens and offshore business entities are legal, some of the shell companies created for the super rich clients were
used for illegal purposes, including tax evasion and outright fraud. However, researching the super rich, tax havens, offshoring,
and potentially illegal activities is challenging. This difficulty is contributed in part by the geopolitical complexities in achieving
international agreement and commitment in tax and fiscal transparency.
Another development is the emergence of freeports for the super rich to store their nonfinancial assets such as fine art, wine,
precious metals, antiques, and classic cars. Unsurprisingly, these freeports are typically located in tax-friendly jurisdictions such
as Switzerland (Geneva, Zurich, Basel, and Chiasso), Hong Kong, and Singapore (Changi Airport). Freeports is an attractive option
as these assets would not be subjected to customs duties and taxes. Furthermore, any sales of goods in freeports would not incur
value-added or capital gains taxes. In other words, freeports function as a non-place in the gray zone between national borders,
where the assets are supposedly “in transit.” However, controversies arise when the assets cross borders without full disclosure.
In other words, freeports could actually facilitate money laundering, corruption, illegal activities, and the international theft of
national treasures.

Looking Forward

The super rich are clearly an empirical manifestation of various social, cultural, economic, and political issues that became prom-
inent in the late 20th and early 21st centuries. What lies ahead for geographical engagements with the super rich, then? Here, I
suggest three research strands to pursue.
First, Michael Savage has argued that the emergence of a new “inequality paradigm” in the social sciences is opportune for
scholars to examine the issue of inequalitydfor which the concept of the super rich is one obvious investigative lensdwithout
being delimited by the baggage of political approaches. Indeed, as much as the super rich concept has exemplified and assisted
in visualizing the problems of global wealth inequality, we need to shift the focus from the super rich as the only culprits, to
examine the roles of structural factors, other actors (e.g., intermediaries), and government policies. The super rich do not operate
in a timeless and placeless world of their own. They are as much grounded in particular eras and contexts that shape their social
actions.
Second, we could look into how elites and the super rich are made and produced through schools (particularly private elite insti-
tutions and programs), family inheritances, and social networks that are grounded in particular geographies and temporalities. This
examination into the production of the super rich should also take into account other categories of difference and their intersec-
tionalities such as gender, ethnicity, age, etc. This approach could then inform a better understanding of the diversities and
 Super Rich 131

variations within the “super rich” that go beyond their economic wealth. The super rich, after all, are not a homogenous groupd-
even if they may share some commonalities.
Finally, we could explore further the transnational mobilities of the super rich and their capital through various perspectives.
From a political perspective, we could question the meanings and relevance of citizenship, territorial borders and boundaries, legal-
ities, and social justice. From a socioeconomic perspective, we could examine the flows of capital and the consequent impacts for
places and societies across various scales. This examination could include capital in the form of investments, philanthropic contri-
butions, knowledge, and social initiatives. From a sociocultural perspective, we could investigate the experiences of living a trans-
nationally mobile life and the implications on the individual, families, and communities.

See Also: Capital and Space; Capitalism; Equity; Gentrification; Housing; Inequality; Poverty; Privilege; Social Class; Transnational Elites.

Further Reading

Atkinson, R., 2016. Limited exposure: social concealment, mobility and engagement with public space by the super-rich in London. Environ. Plan. 48, 1302–1317.
Beaverstock, J.V., 2012. The privileged world city: private banking, wealth management and the bespoke servicing of the global super rich. In: Derudder, B., Hoyler, M., Taylor, P.J.,
Witlox, F. (Eds.), International Handbook of Globalization and World Cities. Edward Elgar, Cheltenham; Northampton, pp. 378–389.
Beaverstock, J.V., Hall, S., Wainwright, T., 2011. Servicing the super-rich: new financial elites and the rise of the private wealth management retail ecology. Reg. Stud. 47,
834–849.
Beaverstock, J.V., Hubbard, P., Short, J.R., 2004. Getting away with it? Exposing the geographies of the super-rich. Geoforum 35, 401–407.
Dorling, D., 2014. Inequality and the 1%. Verso, London; New York.
Forrest, R., Koh, S.Y., Wissink, B. (Eds.), 2017. Cities and the Super-rich: Real Estate, Elite Practices, and Urban Political Economy. Palgrave Macmillan, New York.
Harrington, B., 2016. Capital without Borders: Wealth Managers and the One Percent. Harvard University Press, Harvard.
Hay, I. (Ed.), 2013. Geographies of the Super-rich. Edward Elgar Publishing, Cheltenham.
Hay, I., Beaverstock, J.V. (Eds.), 2016. Handbook on Wealth and the Super-rich. Edward Elgar Publishing, Cheltenham.
Hay, I., Muller, S., 2012. ‘That tiny, stratospheric apex that owns most of the world’– Exploring geographies of the super-rich. Geogr. Res. 50, 75–88.
Keister, L.A., 2014. The one percent. Annu. Rev. Sociol. 40, 347–367.
Pow, C.P., 2017. Courting the ‘rich and restless’: Globalisation of real estate and the new spatial fixities of the super-rich in Singapore. Int. J. Hous. Policy 17, 56–74.
Savage, M., Holmwood, J. (Eds.), 2014. Focus: Social Change in the 21st Century: The New Sociology of ‘wealth Elites’, vol. 15. Discover Society. Retrieved from: http://www.
discoversociety.org/2014/12/01/focus-social-change-in-the-21st-century-the-new-sociology-of-wealth-elites/.
Short, J.R., 2004. Global Metropolitan: Globalizing Cities in a Capitalist World. Routledge, London; New York.
Urry, J., 2014. The super-rich and offshore worlds. In: Birtchnell, T., Caletrío, J. (Eds.), Elite Mobilities. Routledge, Abingdon, Oxon; New York, pp. 226–240.

Relevant Websites

Capgemini World Wealth Report https://www.worldwealthreport.com/.

Capital in the Twenty-First Century (data files and supplementary materials) http://piketty.pse.ens.fr/en/capital21c2.
Credit Suisse Global Wealth Report https://www.credit-suisse.com/corporate/en/research/research-institute/global-wealth-report.html.
Forbes World Billionaires https://www.forbes.com/billionaires/.
Hurun http://www.hurun.net.
Knight Frank Wealth Report http://www.knightfrank.com/wealthreport.
Oxfam International https://www.oxfam.org.
Wealth-X https://www.wealthx.com/insights-resources/reports/.

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