Development theory and industrialisation: Beyond the impasse

Abstract

This article examines debates about the industrialisation of parts of the periphery (in particular East Asia) in the context of the impasse in development theory. It is argued that neo-classical theory, regulation theory and the theory of the new international division of labour, all fail to adequately explain the rise of the newly industrialising countries, and indeed all share a methodology which reads off events in the “periphery” from the actions of metropolitan countries. An alternative approach is suggested, which combines analysis of the “global” and the “local.” This analysis suggests that there are competitive disadvantages for late developers in the global political economy, and in putting forward this view a brief critique of flexible specialisation is made. Finally, it is argued that these competitive disadvantages are dealt with in different ways by different nations in the periphery. The main factors shaping this process will be indigenous classes and state structures.