As conceived by Lenin in his pamphlet of the same name, the theory aims to describe the final historical stage of capitalism, of which he believed the Imperialism of that time to be the highest expression.
The standard of living in those countries is based on the extreme poverty of our countries.The strategic political implication of the theory for Marxist-Leninists, towards the end of the Joseph Stalin era and afterwards, was that the labour movement should form a people's democratic alliance under the leadership of the Communist Party with the progressive middle classes and small business, against the state and big business (called "monopoly" for short).
[6] The concept was to a large extent either modified or abandoned in the era of eurocommunism, because it came to be believed that the state apparatus could be reformed to reflect the interests of the working majority.
In other words, the fusion between the state and big business postulated earlier was not so tight that it could not be undone by a mass movement from below, under the leadership of the Communist Party (or its central committee).
[citation needed] When Varga introduced the theory, orthodox Stalinist economists attacked it as incompatible with the doctrine that state planning was a feature only of socialism, and that "under capitalism anarchy of production reigns.