In this case study of the structure of power and ruling class domination, the author analyzes the political economy of Juazeiro, Bahia, and Petrolina, Pernambuco while focusing on the history of patriarchal families, ruling class, and patrimonial governments. He shows that the ruling classes benefited from the outside capital of the State and corporations, but that the State is an all pervasive force that facilitates the reproduction of advanced forms of capital. An essential issue is how the local ruling class relates to the State and national and multinational capital, for it is clear that the full development of productive forces in the region has not been achieved and that the transition to capitalism, while underway, has not yet been completed.