neo-corporatism

Neo-corporatism is a theory of interest group activity that contrasts with pluralism. It is a modern form of state corporatism, which historically emerged in authoritarian systems where the government dominated society and directed all sectors to work for the public interest. In contrast, neo-corporatism is theoretically based on voluntary agreements between government, labor, and business interests.

The primary goal of neo-corporatism is economic: to control costs and inflation to maintain international competitiveness and domestic living standards. This model requires strong peak associations that can enforce agreements. Countries like those in Scandinavia, Germany, Austria, and Switzerland, with dominant peak associations, best exemplify neo-corporatism. Critics argue it's a form of pluralism, as it operates within pluralist political systems and primarily involves major groups, with other interests competing as in a pluralist system. The practice of neo-corporatism varies significantly across countries.1