ABSTRACT
The analysis of the economic and class structure of what I have called semi-populist, state capitalist, developmental nationalism can lead us directly to an understanding of the tendency for an oscillation in the economic structure. The diverse interests which the state attracts render the economic structure extremely vulnerable to a resource crisis. In order to create the necessary social mobility and to generate the resources to sustain the constant absorption of interests, the state becomes committed to an aggressive expansion policy that is far beyond its means. The state's economic enterprise is hard pressed to meet the demands of both populism — pursued in the name of the masses — and developmentalism — pursued in the interests of the technocrats and capitalists. The mass subsidization of subsistence, coupled with the constant expansion of employment in the state and an aggressive investment policy, place the regime in an extremely precarious resource position. A commitment to maintaining the availability of middle-class goods adds to the problem, as does the inability to maintain the productivity of labour.
