Final answer:
The theory developed by Karl Wittfogel and Julian Steward in the 1950's is called the Hydraulic Civilization Theory. It suggests that the control and management of water resources played a significant role in the formation of early states.
Step-by-step explanation:
The theory of state formation developed by Karl Wittfogel and Julian Steward in the 1950's is known as the Hydraulic Civilization Theory. According to this theory, the development and organization of early states were heavily influenced by the management of water resources, specifically large-scale irrigation systems. Wittfogel argued that the control of water, such as rivers and irrigation systems, led to the emergence of centralized states with despotic rulers. Steward, on the other hand, emphasized the importance of environmental and cultural factors in state formation.