In the 21st century, the nature of the State in developing societies is evolving significantly, particularly in the context of inclusive growth. Traditionally, the state was often viewed as either a developmental engine or, conversely, as weak or predatory. However, the paradigm of inclusive growth—which emphasizes equitable distribution of benefits, poverty reduction, social justice, and environmental sustainability alongside economic expansion—has reshaped its role.

The modern developing state is increasingly expected to be a facilitator of broad-based development, moving beyond mere economic growth targets. This involves a greater emphasis on good governance, including transparency, accountability, and the rule of law, to ensure that development benefits reach all segments of society. States are now crucial in regulating markets to prevent excessive inequality and environmental degradation, while also expanding social policies in education, healthcare, and social safety nets as investments in human capital and inclusion. Furthermore, there's a growing trend towards decentralization, empowering local governance, and fostering partnerships with civil society, the private sector, and international organizations. The state's role is thus becoming more complex, requiring it to be responsive, adaptive, and capable of navigating global challenges while ensuring that development is truly inclusive and sustainable for its citizens.