Volume 7 (2012)
Most Downloaded Articles
- Excessive Ambitions by Elster, Jon
- Comment on "Implementing a Macroprudential Framework: Blending Boldness and Realism" (by Claudio Borio) by Calomiris, Charles W
- Animal Spirits Revisited by Dow, Alexander and Dow, Sheila C.
- Comment on "The Complex Economic Organization of Capitalist Economies" (by Richard R. Nelson) by Hollingsworth, Rogers
- Capital Markets and Financial Politics: Preferences and Institutions by Roe, Mark J.
Corporatism and the Ghost of the Third Way
1University of Alberta
1National University of Singapore
Citation Information: Capitalism and Society. Volume 5, Issue 3, Pages –, ISSN (Online) 1932-0213, DOI: 10.2202/1932-0213.1076, December 2010
- Published Online:
An economic system called corporatism arose in the late 19th century, promoted by Anti-Cartesian French intellectuals dismayed with the disenchantment of the world Weber attributed to capitalism, and by a Roman Catholic church equally dismayed with both liberalism and socialism. Corporatism recognizes the innate inequality of human beings and their need for secure places in a legitimate hierarchy and thus puts the police power of the state behind officially sanctioned Corporations, elite-controlled industrial group cartels empowered to set wages, prices, employment, and quotas, to regulate entry, and to limit imports. Corporatism was to end the class struggle by guaranteeing workers their accustomed jobs and incomes and by delegating traditional authority through a principle of subsidiarity. We argue that countries that adopted corporatism most fully those with Roman Catholic majorities or French-educated elites experienced substantial financial development reversals and retain legacy Corporatist institutions that continue to retard financial development and growth.