The argument of this paper is that successful economic development within the `Third World' depends on the ability of a state to lead its national society to controlled participation in the world market. The first part of the paper produces a model of the requisite state capacity. What matters is `bounded autonomy': states need to be, at one and the same time, autonomous from and yet constrained by their societies. The second part of the paper examines the recent economic performance of five major regions - East Asia, India, China, Latin America and Sub-Saharan Africa - in the light of the model, thereby lending empirical support to its basic contours. The conclusion notes that the factors used to create the model must be placed in historical context.
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