Over-concentration of capitalist development

Concentration of wealth in centres of industrialization

Nature

Globalization is producing a twofold process of concentration in the centres of greatest capitalist development. One the one hand the world's wealth is increasing and becoming concentrated in them, while on the other hand internal inequity is growing, concentrating the wealth in just a few hands.

Background

The problem of over-concentration of capitalist development gained prominence in the mid-20th century, as scholars and policymakers observed stark disparities in economic growth between regions and within nations. Landmark studies, such as Gunnar Myrdal’s "Asian Drama" (1968), highlighted how capital accumulation clustered in select urban centers, exacerbating inequality. Subsequent global forums, including UNCTAD conferences, increasingly recognized the destabilizing effects of such concentration on social cohesion and sustainable development.

Incidence

The over-concentration of capitalist development is evident in the persistent clustering of economic power, investment, and innovation within a limited number of global cities and regions. This phenomenon has led to stark disparities in wealth, infrastructure, and opportunities between urban centers and peripheral areas, with significant consequences for social cohesion and regional stability. The trend is observable across continents, affecting both developed and developing nations, and is exacerbated by globalization and digitalization, which further concentrate resources and influence.
In 2022, the city of San Francisco, USA, exemplified this issue as it continued to attract disproportionate venture capital investment—over $50 billion—while surrounding rural areas experienced economic stagnation and population decline.

Claim

The over-concentration of capitalist development is a critical problem that threatens social stability and global well-being. When wealth and resources are hoarded by a select few, inequality skyrockets, innovation stagnates, and democracy erodes. This lopsided growth fuels resentment, undermines opportunity, and leaves entire communities behind. Ignoring this issue is reckless—addressing the over-concentration of capitalist development is essential for a fair, sustainable, and just future for all.

Counter-claim

For many of the developed countries, the processes of globalization have enabled them to embark on a new cycle of expansion in economic terms and a new cycle of worldwide spreading of their values and customs. The opening of the borders of countries living in a planned economy system and countries with protected economies has meant a substantial increase in room for manoeuvre by transnational companies and corporations with links with developing countries. This increase in levels of economic growth, product and goods available has not produced the consequence of a greater spread of wealth but, on the contrary, greater economic concentration, both in the developed countries and in the upper classes of the population in countries linked in with the new globalized activities. This twofold process of concentration is one of the characteristics of the current process of globalization.