Capital Concentration in the Global Economy as a Factor of Unequal Distribution of Income

Abstract

The problem of unequal income distribution is relevant. This article is devoted to the analysis and assessment of the level of capital concentration in the world and, as a consequence, the uneven distribution of income in the global economy, particularly in Armenia. This study shows the unevenness of capital accumulation by volume and per capita in the leading countries of the world and in post-Soviet countries. The capital accumulated in some countries makes it possible to change economic systems and ensure development on a scale that has not been seen before. Simultaneously, the unevenness of accumulation increases the gap between countries with capital and those that lack capital. Globalization exacerbates the problem of capital concentration. The concentration of capital through the creation of a global market has provided new opportunities for lagging countries to become a fully fledged part of the world's economic processes. However, in reality, the process is reversed, and the benefits of globalization accrue mainly to large owners of capital. Many countries remain outside the process of development of the global economy, and acute inequality in income distribution both within individual states and in the global arena remains an unsolved problem. The study examined in detail the theoretical background of the increasing concentration of capital in the world, highlighting the positive and negative factors of its impact on economic growth. This study also considers an example of the Armenian economy. The study concluded that capital concentration leads to unequal distribution of income globally but is also a key driver of economic growth in many countries.