The study undertakes a comparative analysis of the state as an economic actor in developing countries. Why have some developing country states been more successful at facilitating industrialization than others? This study argues that the main reason is more or less effective states.

Why have some developing countries industrialized and become more prosperous rapidly while others have not? Focusing on South Korea, Brazil, India, and Nigeria, this study compares the characteristics of fairly functioning states and explains why states in some parts of the developing world are more effective. It emphasizes the role of colonialism in leaving behind more or less effective states, and the relationship of these states with business and labor in helping explain comparative success in promoting economic progress.