Introduction

This chapter introduces the conceptual foundation of Development and the Power Theory of Economics: How Power Dynamics Shape Government Policy, Institutions, and Economic Strategies. It argues that power is not a passive backdrop but an active and dynamic force that shapes economic trajectories, institutions, and policy outcomes. By bridging economics and political science, the chapter establishes a multidisciplinary lens through which to understand how authority, influence, and social control interact with economic processes at both national and global levels. The discussion foregrounds developing countries, where legacies of colonialism, resource dependency, and external interventions continue to influence institutional frameworks, governance structures, and strategic choices in economic management. The chapter underscores that power manifests in political authority, economic leverage, and social hierarchies, each of which profoundly affects developmental outcomes. While scholars increasingly acknowledge these linkages, existing economic frameworks often treat power as peripheral rather than central to development analysis. The result has been incomplete strategies for achieving inclusive and sustainable growth, particularly in low- and middle-income contexts where inequalities and vulnerabilities persist. The problem statement highlights a critical gap: despite recognition of the importance of power, little attention has been paid to how structural and institutional power relations constrain equitable development. This gap restricts the design of transformative policies and strategies aligned with the Sustainable Development Goals. The chapter, therefore, poses a central guiding question: How do power structures at institutional, national, and global levels influence economic growth and development outcomes, and what frameworks can mitigate inequities to inform effective policy? By situating power at the core of economic analysis, this introductory chapter sets the stage for the book’s broader inquiry into the mechanisms through which power relations shape growth trajectories and identifies pathways for advancing inclusive and sustainable development.