Corporatism

CORPORATISM, derived from the Latin word corpus, is a political or social system in which a government or society creates alliances with professional, social, and economic groups to promote an agenda. In general terms, a corporatist system usually refers to governmental systems. Essentially, corporatism alludes to the parts of a society contributing to the development of that particular entity. However, on the social level, it can refer to social systems in relation to the Catholic Church or other interest groups.

Historically, the idea of corporatism evolved in the medieval era, in the 1300s. Medieval society was centered around the Catholic Church or societal guilds. Thus, corporatism in the pre-Reformation era centered on social guidance, rather than on any political or economic goals. In more recent times, however, the idea of corporatism emerged in an increasingly political environment.

In the late 19th century, industrialization gripped Europe. In a previously rural and agrarian society, the onslaught of mechanization and technology signaled the end of a tranquil way of life. Industrialization led to migration to the cities in search of employment and more stable living conditions. Arriving in the crowded cities, many worked in crowded factories with long hours, earning low wages and subject to horrible working conditions. The result of the process of industrialization was an increasing sense of hostility and alienation.

Many joined syndicalist unions and conglomerates to protect against the exploitative practices of employers. Especially in the late 19th century, radical ideologies of communism, socialism, and anarchism permeated many of these unions. The unions, in turn, became radicalized as the groups promoted radical action against capitalism, specifically in the form of violence and protests. This pattern occurred in many European societies, from Spain to Germany.

[Page 602]In the mid-19th century, with radicalism and unionism threatening to tear European society in half, many observers began to look for alternatives to the radicalism of the communists or anarchists. The earliest known expression or reaction to corporatism surfaced from the writings of the ebullient Adam Müller. Müller professed his views in response to the egalitarianism of the French Revolution and as a critique of Adam Smith's Wealth of Nations. Müller argued that there existed a contradiction in 18th-century Europe between the notions of community and capitalist individualism.

Utilizing Müller's concepts of individualism, and in response to the economic chaos of 19th-century industrialization, the ideology of corporatism emerged. In 1884, in the German town of Freiburg, local church leaders met to discuss social ills and poverty, which were endemic throughout Europe. The church leadership demanded that the state solve society's social problems. The meeting essentially served as a base of operations for a rejuvenated Catholic Church. On May 15, 1891, Pope Leo XIII issued an encyclical named Rerum Novarum. With the subtitle, “Condition of Labour,” the encyclical discussed the travails of the working class in the late 19th century. It proceeded to refute the ideological claims of the socialists and communists on the importance of private property and, indeed, promoted the capitalist notion of private property. Finally, the encyclical demanded that the state form an alliance with the worker, against capital, for both mutual protection and self-protection. As a result of the Rerum, the basic component of corporatism surfaced. That is, an alliance between the state and the workers, excluding the unions and syndicates, would alleviate the power of the communist unions and decrease political radicalism. Essentially, the Rerum provided an alternative route, or what later corporatist theorists would call the Third Way.

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