The theory of the capitalist state and the problem of policy formation

Abstract

This article analyses difficulties associated with actions undertaken by a capitalist state in the process of allocation and production. It defines the capitalist state in regard of its functional relation and dependency on a process of accumulation. The article discusses the features of an allocative and productive mode of a capitalist state. The author also presents the rules of policy making, pointing to the fact, that, the usual concept of state’s activity, as an institution bound to solve the problems, in one-sided and not complete. The article also analyses three main strategies of establishing the balance between the structures of decision-making and state’s functions in regard of an accumulation process.