Question

``The claim, made by structuralism and dependency theory, that subordination to the world market seals the fate of nations is wrong. Inequality, poverty, low productivity and sluggish growth in the periphery, their propensity to import luxury goods and transfer profits to the centre, and the lack of coordination of economic activity in many countries, are due primarily to the social structures prevailing in the periphery, rather than their international trade relations.''
(Alfredo Saad-Filho (2005), `The Rise and Decline of Latin American Structuralism and Dependency Theory')
Which among the following statements can be asserted from the above excerpt?

• A. Underdevelopment is mainly due to the balance of political forces within the periphery.
• B. Trade patterns between core and periphery follow from ``the social structures prevailing in the periphery''.
• C. Unequal exchange between core and periphery inhibits development of the latter.
• D. There is a pathway to development through the world market.

Hint:

When an argument shifts emphasis from external constraints to internal structures, it usually allows for multiple development paths, including engagement with global markets.

Answer 1

The Correct Option is A, B, D

Step 1: Understanding the central argument of the excerpt.
The excerpt explicitly rejects the deterministic claim of dependency theory that mere subordination to the world market permanently condemns peripheral nations to underdevelopment. Instead, it emphasizes internal social structures as the primary cause of inequality and stagnation.
Step 2: Interpreting the causes of underdevelopment.
According to the passage, factors such as poverty, inequality, and lack of coordination arise mainly from social and political arrangements within peripheral societies. Hence, underdevelopment is linked to internal balances of power rather than only external trade relations, supporting option (A).
Step 3: Understanding trade relations.
The excerpt states that international trade relations are shaped by the social structures prevailing in the periphery. Therefore, trade patterns between core and periphery follow from internal social structures, validating option (B).
Step 4: Evaluating unequal exchange.
The passage argues against the idea that unequal exchange alone inhibits development. Instead, it downplays external trade relations as the main determinant. Hence, option (C) cannot be asserted from the excerpt.
Step 5: Possibility of development through the world market.
By rejecting the claim that world market participation seals a nation’s fate, the excerpt implies that development through engagement with the world market remains possible under suitable internal conditions. This supports option (D).
Final Answer: (A), (B), (D)