Final answer:
The appeal of Marxist explanations of the state has been diminished by the rise of neoliberalism, the resilience of capitalism, the mixed empirical results from socialist states, and the postmodern critique of grand narratives.
Step-by-step explanation:
The question "What has diminished the appeal of Marxist explanations of the state?" pertains to the changes in modern political and economic thought. Marxism, which emerged as a response to the rise of capitalism, asserts that the owners of the means of production hold disproportionately high power over society's norms and institutions. This created a need for Marxist states, which aim to ensure equality and promote the idea that societies should invest internally for the good of their citizens. However, several factors have played a role in diminishing the appeal of Marxist explanations of the state.
Firstly, the rise of neoliberalism has championed market-driven approaches to economics and has been critical of state intervention in markets, a view that is at odds with Marxist principles.
Secondly, rather than the decline of capitalism, we have seen its resilience and adaptation, which has led to the questioning of Marx's predictions regarding the fall of capitalist systems.
Thirdly, the emergence of socialist states with varying degrees of success has provided empirical evidence that has sometimes contradicted Marxist theoretical expectations.
Lastly, the influence of postmodernism has brought with it skepticism of grand narratives and ideologies, such as Marxism, challenging their universal applicability and emphasizing the role of culture, identity, and discourse.