Income Inequality Communist Countries

Like capitalist societies the soviet union and the soviet type societies of eastern europe showed a high degree of social stratification and inequality.

Income inequality communist countries. S80 s20 is the ratio of the average income of the 20 richest to the 20 poorest. Because privileges in the soviet union were only weakly. Some of these nations like the people s republic of china were and still are global players in their own right. Other communist countries such as east germany were essentially satellites of the u s s r.

Income inequality is also detrimental from social and political perspectives as it can increase socio political instability park. One of them is supported by uslaner 2009 who claims that even though post communist countries have low income inequality while having high corruption due to the rule of communism this relationship will reverse quickly after post communist countries catch up in income inequality with the rest of european countries. The 10 of people with highest income to that of the first decile. In communist countries it plays no role if you are a rocket scientist or a toilet cleaner.

There might be more explanations to these effects. P90 p10 is the ratio of the upper bound value of the ninth decile i e. During the time of the soviet union 1922 1991 communist countries could be found in eastern europe asia and africa. Income inequality has become an important issue in central and eastern european countries during their transition process.

That is why so many people in communist countries go to universities to become rocket scientists just kidding. The most extreme of these are in the most politically sensitive border areas where they exacerbate increasingly violent ethnic. Income inequality economic efficiency and economic growth. Income inequality is the driving force of capitalism.

This is a list of countries or dependencies by income inequality metrics including gini coefficients the gini coefficient is a number between 0 and 1 where 0 corresponds with perfect equality where everyone has the same income and 1 corresponds with perfect inequality where one person has all the income and everyone else has no income. However our analysis shows that this claim is not supported by the development of corruption in europe. That played a significant role during the cold war but no longer. In sharp contrast middle east countries where inequality of income is perhaps the greatest are among those with lowest rates of capital.

Has achieved since the second world war one of the highest rates of capital formation and economic growth in the non communist countries. Income inequality in post communist cee countries 7 be an inefficient allocation of assets as for example the rich own the majority of land todaro and smith 2009. P90 p50 of the upper bound value of the ninth decile to the median income. All get the same low wages.

This article shows that different income categories of central and eastern. The economy of today s people s republic of china prc that is to say communist china not hong kong china or taiwan china or singapore china but communist china probably has the most unequal income distribution of any of the world s major economies. The wealth disparity is even more pronounced and beyond that there are great regional disparities.