I. What is Corporatism/ Corporist Economy?
Origin: derived from the Latin word ‘corpus’ which means body In the last half of the 19th century people of the working class in Europe were beginning to show interest in the ideas of socialism and syndicalism. Some members of the intelligentsia, particularly the Catholic intelligentsia, decided to formulate an alternative to socialism which would emphasize social justice without the radical solution of the abolition of private property. The result was called Corporatism. Definition: The basic idea of corporatism is that the society and economy of a country should be organized into major interest groups (sometimes called corporations) and representatives of those interest groups settle any problems through negotiation and joint agreement. In contrast to a market economy which operates through competition a corporate economic works through collective bargaining. Under corporatism the labor force and management in an industry belong to an industrial organization. The representatives of labor and management settle wage issues through collective negotiation. While this was the theory in practice the corporatist states were largely ruled according to the dictates of the supreme leader. Fascism's theory of economic corporatism involved the management of sectors of the economy via government or privately controlled organizations (corporations). Each trade union or employer corporation would, in theory, represent its professional concerns, especially through negotiation of labor contracts and the like. This approach, it was theorized, could result in harmony amongst social classes. Authors have noted, however, that de facto economic corporatism was used in specific instances of silencing opposition and rewarding political loyalty. Corporatism, (Italian corporativismo) also called corporativism, the theory and practice of organizing society into “corporations” subordinate to the state. According to corporatist theory,...
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