Concept: an alternative to pluralism
Schmitter (1974) defined corporatism as a system in which a limited number of functionally differentiated organizations are recognized by the state, granted representational monopoly and, in exchange, control their members. Unlike pluralism, where many groups compete freely, it centers on institutionalized bargaining between the state and encompassing organizations. Lehmbruch and Schmitter (1982) compared such concertation across countries.
Origins and economic effects
Cameron (1978) showed that more trade-open countries tend to have stronger labor organization and larger public sectors, and Katzenstein (1985) argued that small open states built democratic corporatism to cope with world-market shocks. Olson (1982) held that encompassing organizations attentive to the whole economy are better for growth than narrow distributional coalitions. Calmfors and Driffill (1988) proposed a hump-shaped hypothesis: performance is good under highly centralized or highly decentralized bargaining and worst in between.
Measurement and change
Siaroff (1999) compared corporatism indices to classify 24 industrial democracies. After the 1980s globalization and falling union density weakened classic corporatism, but it reappeared in many European countries as social pacts for competitiveness and employment. The debate connects to coordinated market economies in varieties of capitalism.
FAQ
- What is neo-corporatism in simple terms?
- The government brings large national unions and employer groups together to agree jointly on wages and economic policy.
- How does it differ from pluralism?
- In pluralism many groups compete freely for influence; in neo-corporatism a few peak organizations bargain with the state through formal institutions.
Sources reviewed: 2026-10-26
References
- Schmitter, P. C. (1974). Still the century of corporatism? The Review of Politics, 36(1), 85–131. The classic definition of corporatism.
- Lehmbruch, G., & Schmitter, P. C. (Eds.). (1982). Patterns of corporatist policy-making. Sage. Comparative cases of corporatist policymaking.
- Cameron, D. R. (1978). The expansion of the public economy: A comparative analysis. American Political Science Review, 72(4), 1243–1261. Openness, labor organization and public economy.
- Katzenstein, P. J. (1985). Small states in world markets: Industrial policy in Europe. Cornell University Press. Democratic corporatism in small open states.
- Calmfors, L., & Driffill, J. (1988). Bargaining structure, corporatism and macroeconomic performance. Economic Policy, 3(6), 13–61. The hump-shaped hypothesis.
- Siaroff, A. (1999). Corporatism in 24 industrial democracies: Meaning and measurement. European Journal of Political Research, 36(2), 175–205. Measuring corporatism.
- Olson, M. (1982). The rise and decline of nations: Economic growth, stagflation, and social rigidities. Yale University Press. Encompassing organizations.