Dependency Political Economy era
In the 1964–1985 Dependency Political Economy, key figures such as Andre Gunder Frank advanced the view that Latin America's development was structurally conditioned by integration into the world capitalist system, with external capital flows and trade patterns shaping underdevelopment. Theotonio Dos Santos elaborated the structure of dependence, showing how peripheral economies faced enduring external constraints and unequal exchange that limited policy space and conditioned social conflict. Fernando Henrique Cardoso and Enzo Faletto formalized a state-centered approach in Dependency and Development in Latin America, arguing that state–market mediations could transform dependency into varying development outcomes within import-substitution industrialization and related strategies. Raul Prebisch's structuralist critique of deteriorating terms of trade and the strategic need for industrialization provided the analytic baseline for emphasizing external constraints, technology transfer, and the central role of the state in development trajectories.