The expansive nature of the dominant socio-economic model lead to the current globalized economy based on open borders, the laws of the open market and the integration of local economic systems. This has as central component the establishment of supranational institutional forms (such as European Union). Economic integration combined with the function of the open market did not result in the elimination of inequalities. Forecasted convergence was far from reached. Historically, in some regions local populations developed ethnically premised movements in order to defend their local identity and culture and promote their relative economic position. Emanating out of an array of distinct ethnic, cultural, religious, societal and economic backgrounds, in many cases such localist movements looked down on their central state government and national institutions and aspired towards the development of alternative localist institutions arrangements. This paper examines the complex inter-determinations between localist movements and regional inequalities, the type and function of the emerging inter-relationships, and their resulting impacts on the acuteness of the two sets of phenomena examined. Negotiating between contrasting theoretical claims we shall examine the evolution of specific localist movements in relation to the regional inequalities of the broader areas in which they appear. We centre our case studies on the dual sets of Castilla - Catalonia and Flanders - Wallonia, whereby in Catalonia and Flanders there have developed strong localist movements vis a vis the central states of Spain and Belgium respectively. Bibliography Hess David J. (2009), Localist movements in a Global Economy, The MIT Press, May 2009