As the second world war drew to a conclusion, the Red Army occupied large areas of Europe. The Bourgeoise were defeated, the fascists routed and Stalin set up governments containing representatives not of the bourgeoisie but the shadow of the bourgeoisie. Stalin began to put his people in charge and the Capitalists were expropriated. The processes developing in these satellite states where not understood by the 'leaders' who maintained they were 'Peoples Democracies' or 'Capitalist States'. The RCP correctly analysed what was happening, that the economic base was nationalised and the power was held by the Red Army. Because of the weaskness of the Trotskyist Forces, the Strength of Stalinism and the inability of the USA or UK to intervene the so-called 'Peoples Democracies' were actually Deformed Workers' States.
Tony Cliff wote "The Nature of Stalinist Russia" when a member of the RCP and in reply Ted Grant wrote "Against the Theory of State Cpitalism"
The leaders of the Fourth International when Yugoslavia split from the USSR. They heralded Tito as an unconscious Trotskyist. Whilst it was correct to support Yugoslavia against the USSR, they were both Stalinists. Jock Haston and Ted Grant wrote "Behind the Tito Stalin clash" to try to rectify the wrong course adopted by the 4th