Question

Critically evaluate the contribution of Dependency Theorist to explain unequal economic systems.

07 Nov 2020
Answer :
Word Count : 536

The trust in markets' ability to generate reasonable outcomes was low when Latin American structuralists forwarded their model, presenting a theory arguing that market forces would lead to underdevelopment in some countries. A corollary of this approach was that markets did not work properly and governments should intervene in the economy to correct the market outcome to a more adequate dynamic equilibrium. Governments were seen as able to speed up the catch-up if they adopted adequate policies to promote industrialization.

Studies on the history of Latin American economies have shown that government interventions always happened, but often did not affect the equilibrium in the “right” direction; rather, they increased further primary commodities' specialization and more underdevelopment. Therefore, some researchers in the region started to ask a simple question: why do public policies not promote __________ ________ ___ ____ _______ ________ _________ _____ _____.
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