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AbstractThe paper positions itself in contrast to some themes in work on local and regional development. These have included an emphasis on policy rather than politics, tendencies to over-generalize across countries, and to abstract from the more global context. The empirical context for the discussion is the shifting character of geographically uneven development since the Second World War: first a convergence and then, after the mid-1970s, a divergence. Convergence is held to be the result of what some have called spatial Keynesianism. The conditions for this and for its demise, resulting in divergence, are traced out with particular reference to how the shifting pressures and opportunities were refracted by the specificities of countries. State form emerges as particularly important in understanding different trajectories, along with a neo-liberal globalisation that has been in contrast to the monetary and trading regime inaugurated by the Bretton Woods agreements.

It is often maintained that capitalist and socialist systems of organization are diametrically opposed. This paper uses convergence theory and the problem of divergence to attack this position. It is argued that socialist systems are economically integrated into the capitalist world economy, and further, that the ideology of divergence acts as a central dynamic in relations of production in the world economy. The world system perspective associated with neo-Marxist writers such as Wallerstein and Frank, is used to suggest an alternative framework for examining the organizational dynamics of 'capitalism' and 'socialism'.

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