Rise of "e;The Rest"e;

After World War II a select number of countries outside Japan and the West--those that Alice Amsden calls "e;the rest"e;--gained market share in modern industries and altered global competition. By 2000, a great divide had developed within "e;the rest"e;, the 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 the European Union. Which model of late industrialization will prevail, the "e;independent"e; or the "e;integrationist,"e; is a question that challenges the twenty-first century.