Transnationalization, Social Integration, and Capitalist Diversity in the East and the South

Abstract

This article analyzes the deep and shallow modes of international integration, semicore, semiperipheral, and peripheral profiles of global insertion, and the presence and absence of transformative state capacity and social cohesion, as interacting dimensions of capitalist diversity in post-socialist Eastern Europe and Latin America. On these grounds, it is argued that Cardoso and Faletto’s dependent development paradigm maintains validity. When adapted to the new conditions, their approach is able to capture the overlapping and divergent aspects of capitalist development in both regions. Recent patterns of development demonstrate that although dependency, stemming from the unequal distribution of resources, roles, and opportunities, continues to be an important aspect of the international division of labor, it ceases to contradict even complex forms of industrialization. Similarly, notwithstanding the asymmetrical power relationships characterizing them, the new transnational integration regimes allow and sometimes help formation of new nation states with improved regulatory capacities. Finally, dependency does not necessarily undermine domestic social inclusion. Rather, it is up to the democratic competition to strike a balance between the requirements of promising international and socially acceptable domestic integration.