Corporatism

Historically, corporatism or corporativism (Italian corporativismo) is a political system in which legislative power is given to corporations that represent economic, industrial and professional groups. Unlike pluralism, in which many groups must compete for control of the state, in corporatism, certain unelected bodies take a critical role in the decision-making process. A corporatist state

Neo-corporatism

In the recent literature of political science and sociology, corporatism (or neo-corporatism) lacks negative connotation. In the writings of Philippe Schmitter, Gerhard Lehmbruch and their followers, "neo-corporatism" refers to social arrangements dominated by tri-partite bargaining between unions, the private sector (capital), and government. Such bargaining is oriented toward (a) dividing the productivity gains created in the economy "fairly" among the social partners and (b) gaining wage restraint in recessionary or inflationary periods.

Related Topics:
Political science - Sociology - Unions

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Most political economists believe that such neo-corporatist arrangements are only possible in societies in which labor is highly organized and various labor unions are hierarchically organized in a single labor federation. Such "encompassing" unions bargain on behalf of all workers, and have a strong incentive to balance the employment cost of high wages against the real income consequences of small wage gains. Many of the small, open European economies, such as Sweden, Austria, Norway, Ireland, and the Netherlands fit this classification. In the work of some scholars, such as Peter Katzenstein, neo-corporatist arrangements enable small open economies to effectively manage their relationship with the global economy. The adjustment to trade shocks occurs through a bargaining process in which the costs of adjustment are distributed evenly ("fairly") among the social partners.

Related Topics:
Labor unions - Sweden - Austria - Norway - Ireland - Netherlands

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Examples of modern neocorporatism include the ILO Conference or in the Economic and Social Committee of the European Union, the collective agreement arrangements of the Scandinavian countries, the Dutch Poldermodel system of consensus, or the Republic of Ireland's system of Social Partnership. In Australia, the Labor Party governments of 1983-96 fostered a set of policies known as The Accord, under which the Australian Council of Trade Unions agreed to hold back demands for pay increases, the compensation being increased expenditure on the "social wage", Prime Minister Paul Keating's name for broad-based welfare programs. In Italy, the Carlo Azeglio Ciampi administration inaugurated in July 23 1993 a concertation (italian: concertazione) policy of peaceful agreement on salary rates between government, the three main trade unions and the Confindustria employers' federation. Before that, salary augmentations always were conquered by strike actions. In 2001 the Silvio Berlusconi administration put an end to concertation.

Related Topics:
ILO - European Union - Dutch - Poldermodel - Republic of Ireland - Social Partnership - Australia - Labor Party - 1983 - 96 - Australian Council of Trade Unions - Pay increases - Social wage - Paul Keating - Welfare - Italy - Carlo Azeglio Ciampi - July 23 - 1993 - Italian - Government - Trade unions - Confindustria - Strike actions - 2001 - Silvio Berlusconi

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Most theorists agree that neo-corporatism is undergoing a crisis. In many classically corporatist countries, traditional bargaining is on the retreat. This crisis is often attributed to globalization, but this claim is not undisputed.

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