The era of development incorporated more people more firmly into the national market economy. The era of ‘national security’ brought more people more firmly under the direction of the nation-state. Armed with new funds and technologies, the nation-state extended its power deeper into society, and farther into the villages and hills. Struggles to control and direct the nation-state now affected the lives and commanded the interest of larger numbers of the nation's citizens.

In the late 1950s, the USA brought together the military, businessmen, and royalists – the three forces that had tussled since 1932 – in a powerful alliance. Together they resurrected and embellished the vision of a dictatorial strong state, demanding unity in order to achieve development and to fight off an external enemy – in this era, ‘communism’. But the alliance's strength was undermined by the generals’ abuse of power and their obvious subordination to American policy. Opposition to the intensity of capitalist exploitation grew. Protests emerged against American domination. Communists launched a guerrilla war, which attracted the support of old intellectuals, young activists, and exploited peasants. Students became the channel through which radical, liberal, nationalist, Buddhist, and other discourses were focused against militarism, dictatorship, and unrestrained capitalism.