Diversification under transnational control: structural dependence and functional sovereignty in the Global South

The ongoing hegemonic transition is often seen as an opportunity for Global South states to expand their policy space and autonomy by diversifying economic ties. Yet transnational economic networks remain hierarchical, concentrating resources and decision-making power at strategic nodes and constraining states’ ability to exercise sovereignty. Despite growing debate over multipolarity, how these hierarchies shape prospects for autonomy remains insufficiently understood. Drawing on a conceptual analysis that brings together world-systems analysis, the coloniality of power, structural dependence and weaponised interdependence, this study examines the mechanisms through which such asymmetries persist. It identifies control over network nodes, financial coercion, and technological and epistemic subordination as key instruments sustaining core–periphery relations. It also shows how diversifying economic partners and pursuing South–South cooperation can create new dependencies when countries rely on externally controlled infrastructure, standards and financial systems. The findings suggest that effective autonomy depends not only on states’ structural positions but also on their institutional capacities and domestic power relations. Expanding functional sovereignty therefore requires transforming the terms of transnational integration rather than merely multiplying external partnerships.