Final answer:
Since the late 1980s, the political economy has become more inclusive of various global economies, with a push towards market-oriented economic reforms improving standards of living in many regions. China's economic boom underscores this globalization. However, reforms can also lead to significant social and economic challenges.
Step-by-step explanation:
In the context of changing political economy since the late 1980s, a variety of trends can be seen. The field has widened its focus from predominantly Western financial powers towards including a diverse range of global economies. Economic reforms and the liberalization of markets have led to increased standards of living in many parts of the world, including East Asia and parts of Latin America and Eastern Europe.
Remarkably, China's transition to a more market-oriented economy in the late 1970s sparked a period of rapid growth, turning it from one of the poorest to a middle-income country. This transformation underscores the shift in the global economy towards interconnectedness and development that includes a broader set of players than before.
However, it's important to acknowledge the challenges that can accompany privatization and market reforms. Issues such as income inequality, corruption, organized crime, and political instability often follow. Additionally, economically challenged regions must focus on human capital development, such as health and education, supported by modern technology. The study of the political economy remains diverse, unconstrained by any single political ideology as economists from various political backgrounds contribute to the discourse.