This paper traces the development of the theory of state monopoly capitalism as presented by the Soviet political economist, E.S. Varga. Early theories of state capitalism that found expression within the Third International, especially in the work of Lenin and Bukharin, provide the context for under standing Varga's views of the capitalist state during the 1930s. A discussion of Varga's positions demonstrates the correspondence of his work with that of crit ics of Soviet orthodoxy, notably Trotsky and Poulantzas. Following the Moscow debate of 1947 Varga fell out of official favor and he was not rehabilitated until 1953. His analysis of the capitalist state continued to evolve resulting in the theory of state monopoly capitalism. This paper takes account of these transfor mations and considers critical observations made by contemporary Marxist writ ers.
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