An old controversy, State versus Market, seems to be always no the top. The developed world, instead of being as liberal as they want everybody to be, are implementing Keynesian measures to deal with the probably upcoming economic recession. This fact obligates us to look again over the economic literature on State and Economic Development, trying to find out our own responses to this problem. The author goes from the classical theory until the new growth theory to look at the development of the economic thinking and the different contributions made to the controversy Key words: Economy, State, Market, Theory, Development, Economic Growth.