広範 ambiguous meaning

Question

During my dictionary search of the word "資本主義" I found this definition:

商品経済の広範な発達を前提に，労働者を雇い入れた資本家による利潤の追求を原動力として動く経済体制。

The thing is that I do understand the whole meaning, however I'm pretty stuck concerning "商品経済の広範な発達を前提に".

1. Does "商品経済の広範な発達" mean "it's a wide development" (as in a big development of one area)

2. Or "it's a wide development" (as in a development that covers a big area)

And also, does the "前提" mean a precondition to realize what is written in the whole sentence or a postcondition (meaning as a result of hiring people and pursuing profit etc...)

Answer 1

The sentence is a little vague, but it should be close to 2. 広範 literally means 広い範囲で=in wide range, so it means the development happens all across the area.

As for Aを前提に, it means that A is a precondition: assuming A, or in this case with A as background.

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The structure of the sentence and a literal transaltion:

• (Aを前提に、(...)動く)経済体制
• a system of economy that functions .... with A as precondition.