State Sector of the Economy of the Developing Countries, state-owned sector of the economy (enterprises in industry, agriculture, trade, transport, banks, etc.). In the countries developing along capitalist lines, it is a form of state capitalism, while in the socialist-oriented countries it gradually assumes new social and economic content, including an anti- capitalist trend. The first historical stage of the formation of the state sector is the transfer of the property which belonged to the 344 former colonial administration into the hands of the national governments. After that, the formation of the state sector may proceed in one of the two ways: either via the nationalisation of already existing enterprises and projects, or via the construction of new state enterprises. The role of the state sector in the economy is determined by its share in the creation of the gross national product or the net production of the key sectors of the economy. The growth of the state sector in the young states is indispensable for the accelerated development of the productive forces. Its social and economic essence depends, at each consecutive stage of development, on the forces which exercise power. In the socialist- oriented countries, the state sector is an instrument for dealing with revolutionary national tasks, develops at the expense of the interests of the national bourgeoisie, and serves as the material foundation for progress. In the capitalist-oriented countries, the national bourgeoisie tries to limit the development of the state sector by encouraging those enterprises and projects that create favourable conditions for private initiative. Thus in the countries developing along the capitalist road, the evolution of the state sector is aimed at consolidating the positions of private enterprise; within it, large-scale production is concentrated, which is based on advanced technology and is instrumental in industrialisation, creating structural changes in the economy and establishing internal economic links. The state sector is a more progressive form of development of the productive forces than the private capitalist sector, and is objectively characterised by an anti- imperialist thrust. That is why all progressive forces in the newly-free countries are concerned with the growth and consolidation of the state sector. In the construction of the state sector enterprises in the developing countries, a fundamentally important fact is their cooperation with the Soviet Union and the other countries of the socialist community. Most of the credit and technical assistance provided by the socialist countries for the young independent states goes to their state sector.