Corporatism is a political and economic system that seeks to organize society around the principles of corporate groups, rather than around individuals or classes. Under corporatism, various groups, such as business associations, labor unions, and professional organizations, are granted a significant role in decision-making and policy-making processes.
Corporatism emerged in the early 20th century as a response to the perceived failures of liberal democracy and the rise of socialism and communism. Corporatists believed that the state should act as a mediator between different interest groups, and that these groups should work together to promote the common good. The goal of corporatism was to create a more stable and harmonious society, in which conflicts between different social groups could be resolved through negotiation and compromise.
One of the key features of corporatism is the idea that social and economic policies should be designed in collaboration with organized interest groups. This means that these groups are granted a formal role in the decision-making process, often through the creation of advisory bodies or councils. For example, in fascist Italy, the Chamber of Fasci and Corporations was created to represent the interests of various occupational groups, and to provide advice to the government on economic and social policy.
Another important aspect of corporatism is the idea that social and economic institutions should be organized according to a hierarchical and organic model. This means that different groups are assigned different roles and responsibilities, based on their place in the social hierarchy. In a corporatist society, for example, business owners might be granted more power and influence than workers, and professionals might be granted more power and influence than unskilled laborers.
Critics of corporatism argue that it can be undemocratic and authoritarian, as it grants a disproportionate amount of power to certain interest groups, while marginalizing others. They also argue that corporatism can be prone to corruption and cronyism, as interest groups are able to exert a great deal of influence over policy-making processes.
Despite these criticisms, corporatism remains a significant force in many societies around the world. In some countries, such as Germany and Japan, corporatism has been institutionalized in the form of co-determination, in which workers are granted a formal role in the management of companies. In other countries, such as China, corporatism has been combined with state socialism to create a unique model of political and economic organization.
Overall, corporatism is a political and economic system that seeks to organize society around the principles of corporate groups. While it has been criticized for being undemocratic and authoritarian, it remains a significant force in many societies around the world, and continues to shape political and economic policies in a variety of ways.