The current paradigm of associative development advocates the attraction of export-oriented foreign direct investments by emerging economies as a road from rags to riches. However, according to the author, the examples of Ireland and Hungary show that the location of foreign firms does not automatically induce successful development. Both countries are dependent on external sources for economic growth, resulting in an uneven growth process. A historic comparison shows that they continue to follow peripheral modes of development. This is a result of both states' failure to cater for inclusive development. Hence, this analysis calls for the formulation of a new development paradigm, which focuses on growth through equality.
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