This chapter is concerned with the shifting fortunes of the Developmental State Paradigm (DSP) and how it does, or does not, have continuing presence and relevance. The DSP has increasingly diverged in understanding of, and in policymaking for, the conditions that it needs to confront. There are two main reasons for this: the first is the long-standing neglect, or more appropriately, shallow notion and treatment, of labour(Chang 2013). The second is the absence of financialization within its continuing framing, despite the enhanced power and presence of finance as key characteristics of the past 30 years of neo-liberalism. Whilst, in the post-war boom, the DSP offered some purchase on material realities and the prospects for policymaking, this has been eroded by financialization. Unless both finance and labour are satisfactorily incorporated analytically, the DSP will remain what it has become policy-wise, marginal to development theory and practice.