Which theory is defined as a general term for a model of economic development that treats disparities among countries as the result of historically derived power relations within the global economic system?

Which theory is defined as a general term for a model of economic development that treats disparities among countries as the result of historically derived power relations within the global economic system?

• A. Neoliberal Policies
• B. Structuralist Theory
• C. Dollarization
• D. World Systems Theory

Answer: (B)

Structuralist Theory foregrounds how long-standing structures in the world economy shape development outcomes. It argues that disparities among countries come from enduring power relations and institutional arrangements created over history—think colonial legacies, patterns of trade, capital flows, and the international division of labor. Because these structural factors persist, differences in development are not just about individual policies or short-term shocks; they reflect how wealth and influence are distributed within the global system. The description in the question lines up with this view, focusing on disparities produced by historically rooted power dynamics in the world economy. World Systems Theory is a specific approach within this broader framework, but the term structuralist theory captures the general idea of these deep, historical constraints. In contrast, neoliberal policies emphasize market liberalization, and dollarization concerns currency regimes, neither of which center the historical power-structure explanation for cross-country disparities.

Structuralist Theory foregrounds how long-standing structures in the world economy shape development outcomes. It argues that disparities among countries come from enduring power relations and institutional arrangements created over history—think colonial legacies, patterns of trade, capital flows, and the international division of labor. Because these structural factors persist, differences in development are not just about individual policies or short-term shocks; they reflect how wealth and influence are distributed within the global system. The description in the question lines up with this view, focusing on disparities produced by historically rooted power dynamics in the world economy. World Systems Theory is a specific approach within this broader framework, but the term structuralist theory captures the general idea of these deep, historical constraints. In contrast, neoliberal policies emphasize market liberalization, and dollarization concerns currency regimes, neither of which center the historical power-structure explanation for cross-country disparities.