In their assessments during the 1960s and 1970s of the state of affairs of Third World “revolutionary democracies” and nations that had taken the “non-capitalist road to development,” the Soviets employed a mode of analysis based on the “correlation of forces.” Given the seeming successes of these “revolutionary democracies” and the appearance of new ones, Moscow was clearly heartened by the apparent tilt in favor of the Soviets and of “progressive” humanity more generally. These apparently positive trends were reflected in Soviet perspectives and policies on the Third World, which focused confidently on such “progressive” regimes. Nonetheless, so-called “reactionary” regimes continued to be a thorn in the side of Soviet policy makers. This study offers a fresh examination of the Soviet analyses of, and policies towards three “reactionary” Third-World regimes: the military dictatorship in Brazil, the Pinochet dictatorship of Chile, and Iran during the reign of the Shah. The article reveals that Soviet decision makers and analysts identified the state sector as the central factor in the “progressive” development of the Third World. Hence the state sector became the focal point for their analyses and the touchstone for Soviet policies; the promotion of the state sector was regarded as a key to the Soviet objective of promoting the “genuine independence” of Third World countries from imperialist domination.