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Studies in Comparative International Development
Published in: Studies in Comparative International Development 4/2009

01-12-2009

Nationalist Versus Dependent Capitalist Development: Alternate Pathways of Asia and Latin America in a Globalized World

Author: Atul Kohli

Published in: Studies in Comparative International Development | Issue 4/2009

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Abstract

When compared to Latin America, Asian economies since 1980 have grown faster and have done so with relatively modest inequalities. Why? A comparison of Asia and Latin America underlines the superiority of the nationalist capitalist model of development, which has often been pursued more explicitly in Asia, over that of a dependent capitalist model, which has often been pursued in Latin America. In comparison to Latin America, the Asian model has facilitated higher and less volatile rates of economic growth and a greater political room to pursue social democratic policies. The “tap root” of these alternate pathways is relative autonomy from global constraints: states and economies in Asia have been more nationalist and autonomous than in Latin America.
previous article Enclaves and Development: An Empirical Assessment
next article Transnationalization, Social Integration, and Capitalist Diversity in the East and the South

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Footnotes
1
Note that as early as 1971 (the year the Spanish edition of Dependency and Development was published), Cardoso and Faletto argued as follows: Continuation of industrialization in a dependent situation “requires changes favorable to development in the international market, and still more essential, elements favorable to a broader measure of autonomy within the socio-political game of the developing countries.” (Cardoso and Faletto 1979: 19–20). Then again: “When development and autonomy are achieved simultaneously, resources and economic and organizational creativity located within the nation have been mobilized…. This was not the course followed by Latin America as it attempted to enter the era of modern industrial production.” (Cardoso and Faletto 1979: 162), emphasis added.
 
2
It is difficult to provide specific country level detail in a short paper. I have analyzed these and related issues for at least the cases of South Korea, Brazil, and India in Kohli (2004).
 
3
The case Sachs (1985) made for the vastly superior export performance of Asian countries in the early 1980s rested on choosing the four most successful Asian exporters, Indonesia, South Korea, Malaysia, and Thailand.
 
4
These figures are calculated from the online data on “foreign direct investment,” United Nations Conference on Trade and Development.
 
5
See Branstetter and Lardy (2008, Figure 16.4, p. 643 and footnote 11, p. 642). The foreign investment originating in Hong Kong, Taiwan, and “other” locations (much of which is from Taiwan but routed via such tax havens as Cayman Islands) clearly constitutes a majority of foreign investment coming into China.
 
6
Those familiar with my other work may wonder if there is a tension between the argument presented in this paper—with an emphasis on national autonomy from global constraints as driving development success—and that developed in the 2004 book, where the emphasis was on differing state capacities. The tension is real, but the way I resolve it in my own mind at present is that national autonomy is a necessary but far from a sufficient condition for creating developmentally efficacious states.
 
7
It is difficult to support such a generalization with detailed case material in a short essay. For the important case of Brazil at least I developed such an argument in more detail elsewhere. See Kohli (2004), Chapters 4 and 5, esp. p. 182.
 
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Metadata
Title
Nationalist Versus Dependent Capitalist Development: Alternate Pathways of Asia and Latin America in a Globalized World
Author
Atul Kohli
Publication date
01-12-2009
Publisher
Springer-Verlag
Published in
Studies in Comparative International Development / Issue 4/2009
Print ISSN: 0039-3606
Electronic ISSN: 1936-6167
DOI
https://doi.org/10.1007/s12116-009-9048-x

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