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Correct answer: C
Explanation
A is incorrect because the passage explicitly argues against determinism by mentioning 'proactive, localized developmental reforms.' B is incorrect because the passage acknowledges that 'structural imbalances persist,' suggesting overcoming constraints entirely is unlikely. C is correct because it accurately captures the nuanced synthesis: acknowledging persistent structural issues while emphasizing dynamic negotiation and local reform. D is incorrect because the passage states colonialism established resource extraction economies, which implies a lack of initial diversification.