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What is the purpose of the modern nation-state and what drives its main functions? This analysis attempts to provide an answer by examining the correlates of state spending on military and public health in the Middle East and North Africa. I draw on theories of states and power, identifying the dual nature of modern nation-states, and argue that spending on military and social policy is shaped largely by domestic institutional arrangements. Theories from comparative politics, sociology, and political economy are operationalized. I consider hypotheses derived from each using pooled cross-sectional time series analysis with macroeconomic data and sociopolitical indicators. Analysis shows that democratic institutions generate spending in both areas, while governing capacity is associated with decreases in military and increases in public health spending. The regression also suggests the unrest of 2011 generated increases in military spending. Overall, these findings provide support for the notion that institutional arrangements largely determine state spending priorities and provide other insights relevant to the theories being tested. This paper extends our understanding of state behaviors vis-à-vis state spending in the context of social unrest. In light of these findings, I theorize that state behavior is molded by the triangular relationship between state, economy, and civil society, and I discuss the need to consider military expenditures in institutional analyses. [ABSTRACT FROM AUTHOR]