In this paper we provide a simple analytical demonstration that an unb
unched beam of two-level particles coherently driven by a quasi-resona
nt counterpropagating field can give rise to coherent Compton back sca
ttering due to self bunching which occurs via an instability very simi
lar to that of a high gain Free Electron Laser. Since the initially we
ak scattering light is exponentially amplified and is Doppler upshifte
d in frequency, this effect constitutes the basic physical principle o
f a tunable source of coherent radiation: the Collective Atomic Recoil
Laser (CARL). CARL extends the FEL bunching concept to any system of
particles having two internal energy levels.