This paper examines James Buchanan's normative theory of the state and
in particular his attempt to establish a legitimating linkage between
the individual and the state. It begins by outlining Buchanan's conse
nt-based theory of the state and the distinction he draws between the
explanatory and justificatory roles of his theory. It proceeds to exam
ine the role of his conceptual contract as a justificatory argument fo
r existing and proposed political institutions. It finds that while th
e conceptual contract may provide an account of the contingent rationa
lity of the state, it fails to have normative significance in terms of
Buchanan's value individualism and subjectivism. Buchanan has also fa
iled to address some of the problems associated with securing and enfo
rcing contractual agreement. These conclusions point to wider problems
with rational choice theories of the emergence of the state.