Corporate statism orstate corporatism is apolitical culture and a form ofcorporatism wherebycorporate groups form the basis ofsociety and thestate. By this principle, the state requires all citizens to belong to one of several officially designatedinterest groups (based generally oneconomic sector), which consequently have great control of their members. Such interest groups thus attain public status, and they or their representatives participate with nationalpolicymaking, at least formally.[1]
Societies have existed historically which exemplified corporate statism, for instance as propounded byOthmar Spann inAustria and implemented byBenito Mussolini'sregime inItaly (1922–1943),António de Oliveira Salazar'sEstado Novo inPortugal (1933–1974)[2] and by the interwarFederal State of Austria. AfterWorld War II, corporate statism influenced the rapid development ofSouth Korea andJapan.[3]
Corporate statism most commonly manifests itself as a ruling party acting as a mediator between the workers,capitalists and other major state interests by incorporating them institutionally into the government. Corporatist systems were most prevalent during the mid-20th century in Europe and later elsewhere in developing countries. One criticism is that interests, both social and economic, are so diverse that a state cannot possibly define or organize them effectively by incorporating them.[citation needed] Corporate statism differs fromcorporate nationalism in that it is a social mode of organization rather thaneconomic nationalism operating by means ofprivate businesscorporations. The topicremains controversial in some countries, including South Korea, Japan, and Portugal.
... fascist Italy ... developed a state structure known as the corporate state with the ruling party acting as a mediator between 'corporations' making up the body of the nation. Similar designs were quite popular elsewhere in the 1930s. The most prominent examples wereEstado Novo in Portugal (1932–1968) and Brazil (1937–1945), the AustrianStandestaat (1933–1938), and authoritarian experiments in Estonia, Romania, and some other countries of East and East-Central Europe,