Successful states maintain a functional relationship between local politics and national politics. Property rights have depended on recognition by communities and local leaders since before any states existed. To maintain unity in an extensive domain, a state needs a cadre of agents who expect national leaders to reward them for serving the state above any local connections. But investments require locally rooted investors with confidence in the state’s protection, so a stable prosperous state must earn the trust of local elites. Successful autocratic states make local politics dependent on national leaders, who promote favored supporters to local leadership by granting them privileged connections in the state. In successful democracies, national leaders are dependent on approval from local groups throughout the nation, and autonomous local leaders who perform well can become competitive candidates for national leadership. International assistance for democratic development can fail when local politics is neglected.