What are the main theories of economic inequality in International Political Economy?

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What are the main theories of economic inequality in International Political Economy?

There are several main theories of economic inequality in International Political Economy. These include:

1. Dependency Theory: This theory argues that economic inequality is a result of the unequal relationship between developed and developing countries. It suggests that developed countries exploit and dominate developing countries through economic and political means, leading to unequal distribution of wealth and resources.

2. Modernization Theory: This theory posits that economic inequality is a temporary phase in the process of economic development. It suggests that as countries modernize and industrialize, they will eventually achieve economic equality and higher standards of living.

3. World Systems Theory: This theory views the global economy as a single integrated system, with a core of developed countries and a periphery of developing countries. It argues that economic inequality is a result of the capitalist world system, where core countries exploit and extract resources from the periphery.

4. Neoliberalism: This theory emphasizes the role of free markets and limited government intervention in promoting economic growth and reducing inequality. It argues that economic inequality is a natural outcome of market forces and can be addressed through market-oriented policies.

5. Institutionalism: This theory focuses on the role of institutions, both domestic and international, in shaping economic inequality. It suggests that institutions such as property rights, rule of law, and international trade agreements play a crucial role in determining the distribution of wealth and resources.

It is important to note that these theories are not mutually exclusive, and different aspects of each theory may be applicable in different contexts.