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The Soviet state of that period was held to be a workers' state because the bourgeoisie had been politically overthrown and the economic basis of that state lay in nationalized property.
The theory that the Soviet Union was a degenerated workers' state is closely connected to Trotsky's call for a political revolution in the USSR, as well as Trotsky's call for defense of the USSR against capitalist restoration.
The term deformed workers' state was coined by the Fourth International to describe states other than the Soviet Union which are or were based upon nationalized property, but in which the working class never held direct political power.
The first example was the Soviet Union, which was proclaimed a "socialist state" in its 1936 Constitution and a subsequent 1977 one.
In the West, such states are better known as "Communist states" (though they never used this term to refer to themselves).
A socialist state may also be a country that uses the term "socialist" in its official name, regardless of the actual political and economic system it has in practice.