After World War II a select number of countries outside Japan and West-those that Alice Amsden calls the rest-gained market share in modern industries and altered global competition. By 2000, a great divide had developed within the rest, lines drawn according to prewar manufacturing experience and equality in income distribution. China, India, Korea and Taiwan had built their own national manufacturing enterprises that were investing heavily in R&D. Their developmental states had transformed themselves into champions of science and technology. By contrast, Argentina, Brazil and Mexico had experienced a wave of acquisitions and mergers that left even more of their leading enterprises controlled by multinational firms. The developmental states of Mexico and Turkey had become hand-tied by membership in NAFTA and European Union. Which model of late industrialization will prevail, independent or integrationist, is a question that challenges twenty-first century.
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