When compared to Latin America, Asian economies since 1980 have grown faster and have done so with relatively modest inequalities. Why? A comparison of Asia and Latin America underlines the superiority of the nationalist capitalist model of development, which has often been pursued more explicitly in Asia, over that of a dependent capitalist model, which has often been pursued in Latin America. In comparison to Latin America, the Asian model has facilitated higher and less volatile rates of economic growth and a greater political room to pursue social democratic policies. The "tap root" of these alternate pathways is relative autonomy from global constraints: states and economies in Asia have been more nationalist and autonomous than in Latin America.Keywords Capitalist development . Washington consensus . Economic performance Cardoso and Faletto's Dependency and Development in Latin America (1979) was a brilliant book then and is a brilliant book now. It provided a sophisticated analysis of diverse responses within Latin America to the shared constraints of a dependent situation. Especially notable was the distinction between enclave economies with limited commodity exports and heavy foreign investment on the one hand, and on the other hand, more complex, diversified economies with a respectable presence of national capital and some indigenous industry. With landed oligarchs and foreign capital controlling states in enclave economies, developmental prospects (both growth and distribution) were limited. By contrast, Cardoso and Faletto suggested that in more diversified economies (such as Brazil), national states in alliance with diverse social classes, were in a better position to promote economic growth, though probably not much redistribution. St Comp Int Dev (2009) 44:386-410