Corporatism

The core meaning of corporatism is an institutional relationship between governing authorities and the representation of interests, notably capital and labor, with the central organs of the state. In this sense, corporatism is closely associated with fascist ideology, notably in Italy and Germany, which promoted capitalist enterprise but directed it into specific works and, with strong links to labor movements, ensured a harmony of control between the major interest groups in society. After World War II, sometimes with the prefix neo-, corporatism became associated with a dominant state that mediated, usually through formal tripartite agreements, macroeconomic conditions between employers and labor unions. During the late 1970s and 1980s, corporatism or neocorporatism was lauded by many academics as providing a high level of macroeconomic performance, both controlling inflation and maintaining relatively low levels of unemployment. At that time, corporatism was associated with Keynesianism. However, the precise form of corporatism and its relationship to state power structures has been much debated.