corporativism

Corporativism, or corporatism, is a political theory and practice that seeks to organize society through a limited number of major interest groups—often representing workers, employers, and professional associations—which are officially recognized as the legitimate voices in policymaking. In corporatist systems, the state mediates or integrates these groups into formal structures such as tripartite councils, rather than allowing independent competition among groups.

There are two broad senses: classic or state corporatism, where the state curbs pluralist competition and uses corporate bodies to channel demands; and neocorporatism, a postwar variant in many Western democracies where the state recognizes, funds, or formalizes negotiations with representative bodies while preserving broader pluralism.

Historically, corporatism is associated with early 20th-century movements; in its most infamous form, fascist Italy created a “corporate state” in which employers’ associations and labor unions were organized into state-controlled corporations and used to subordinate class conflict. Similar structures appeared in Portugal under the Estado Novo and in certain periods in Spain under Franco. In the postwar era, Sweden, Austria, and other welfare states developed neocorporatist labor-market arrangements in which governments rely on organized interests to set policy on wages, welfare, and industry.

Critics argue that corporatism undermines liberal democracy by limiting political competition and concentrating power within allied groups, while supporters claim it can reduce class conflict and produce more coordinated policy. The concept remains debated, and modern practice varies widely in different countries.

See also: corporatism, neocorporatism, tripartite system.