The paper investigates the theoretical dislocation between the domestic oriented character of theories of the State and the transnational character of theories of socio-economic development. Employing the case of the food and agricultural sector, it is argued that the literature in this area has emphasized the transnational dimension of capital accumulation and the process of by-passing State authority at the national level. This situaion mandates a re-evaluation of State theories in regard to the international dimension of current processes of capital accumulation. Furthermore, the present analysis suggests patterns of "contradictory convergence" in which expansion at the transnational level of State action is demanded by transnational corporations and subordinate classes alike. This demand, however, is contradictory, as it finds its limits in the transnational bourgeoisie's desire to avoid State action. Politically, as a result of this situation the locus of emancipatory social action should be increasingly transferred to the international arena.