Revealing that the key to successful economic development in late industrializers rests in the state’s capacity to discipline capitalists, this study sheds light on why certain countries (South Korea and Taiwan) have the capacity to discipline capitalists, while others (Mexico and Argentina) find themselves at the receiving end of industrialists’ political and economic power. Closer examination of middle classes, especially rural middle classes, reveals the extent to which they achieve sufficient political sway in politics and society, and thus are able to impose such discipline.

Revealing that the key to successful economic development in late industrializers rests in the state’s capacity to discipline capitalists, this study sheds light on why certain countries (South Korea and Taiwan) have the capacity to discipline capitalists, while others (Mexico and Argentina) find themselves at the receiving end of industrialists’ political and economic power. Closer examination of middle classes, especially rural middle classes, reveals the extent to which they achieve sufficient political sway in politics and society, and thus are able to impose such discipline.