Distribution of wealth - Definition

In economics, Distribution of wealth refers to the proportion of capital controlled by a given percentage of a population. Typically, a small percentage will control a larger percentage of available capital.

Globally, the distribution of wealth is said to be concentrated among the G8 and Western industrialized nations, along with several pockets in Asia.

Socialism and communism are designed to diminish the perceived conflicts arising from unequal distribution of wealth by forcing wealthier members of society to surrender some or all of their assets to the majority in a process sometimes called wealth transfer. The State or the people then administer all public assets. Critics of state-managed economies cite the former Soviet Union and The People's Republic of China as examples of countries where, despite aggressive economic regulation, wealth continued to distribute unevenly, often among those in politically powerful positions.

In most countries, attempts are made through taxation, regulation and governmental oversight to at least diminish the natural economic tendancy for capital (and therefore effective political power) to accumulate among small groups, often resulting in substantial political debate and controversy.