The Limits of Convergence

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This book challenges the belief that globalization leads to economic convergence and cultural homogenization across nations. Through a systematic comparison of organizational change in Argentina, South Korea, and Spain since 1950, it reveals that global competition compels countries to leverage their unique strengths, resulting in distinct development paths. The analysis highlights how business groups, small enterprises, and foreign multinationals fulfill different economic roles based on a country's development trajectory. Business groups flourish under foreign-trade and investment protectionism, excelling in large-scale, capital-intensive sectors like automobile assembly and construction, often at the expense of smaller firms and foreign multinationals. Conversely, small and medium enterprises thrive in knowledge-intensive sectors, such as component manufacturing and branded consumer goods, particularly when export-oriented multinationals face fewer restrictions. The book concludes with an optimistic perspective, suggesting that while challenging, it is possible for countries to transcend the barriers between poverty and wealth. It posits that globalization fosters economic diversity and advocates for democracy as the most effective governance model to navigate globalization's complexities, countering the notion that economic modernization must precede democratization. This work exemplifies applied economic sociology, rich i