Corporatism is a collectivist political ideology developed as a "Third Way" along with Christian democracy and fascism which advocates the organization of society by corporate groups, such as agricultural, labour, military, business, scientific, or guild associations, on the basis of their common interests. The term is derived from the Latin corpus, or "body".
As originally conceived, and as enacted in fascist and authoritarian conservative states in mid-20th century Europe, corporatism was meant to be an alternative to both free market economies and socialist economies. The hypothesis that society will reach a peak of harmonious functioning when each of its divisions efficiently performs its designated function, as a body's organs individually contribute to its general health and functionality, lies at the center of corporatist theory. Corporatism, socioeconomically, is based on an organization called a corporation, whence it gets its name.
Corporatism does not refer to a political system dominated by large business interests, even though the latter are commonly referred to as "corporations" in modern American vernacular and legal parlance; instead, the correct term for this theoretical system would be corporatocracy. Corporatism is not government corruption in politics or the use of bribery by corporate interest groups. The terms 'corporatocracy' and 'corporatism' are often confused due to their name and the use of corporations as organs of the state.
Corporatism developed during the 1850s in response to the rise of classical liberalism and Marxism, as it advocated cooperation between the classes instead of class conflict. Corporatism became one of the main tenets of fascism, and Benito Mussolini's fascist regime in Italy advocated the total integration of divergent interests into the state for the common good; however, the more democratic neo-corporatism often embraced tripartism.
Corporatist ideas have been expressed since ancient Greek and Roman societies, with integration into Catholic social teaching and Christian democratic political parties. They have been paired by various advocates and implemented in various societies with a wide variety of political systems, including authoritarianism, absolutism, fascism, liberalism, and social democracy.
Kinship corporatism
Kinship-based corporatism emphasizing clan, ethnic and family identification has been a common phenomenon in Africa, Asia and Latin America. Confucian societies based upon families and clans in East Asia and Southeast Asia have been considered types of corporatism. China has strong elements of clan corporatism in its society involving legal norms concerning family relations. Islamic societies often feature strong clans which form the basis for a community-based corporatist society. Family businesses are common worldwide in capitalist societies.
Politics and political economy
Communitarian corporatism
Early concepts of corporatism evolved in Classical Greece. Plato developed the concept of a totalitarian and communitarian corporatist system of natural-based classes and natural social hierarchies that would be organized based on function, such that groups would cooperate to achieve social harmony by emphasizing collective interests while rejecting individual interests.
In Politics, Aristotle described society as being divided between natural classes and functional purposes: those of priests, rulers, slaves and warriors. Ancient Rome adopted Greek concepts of corporatism into its own version of corporatism, adding the concept of political representation on the basis of function that divided representatives into military, professional and religious groups and set up institutions for each group known as collegia.