Social corporatism
Encyclopedia
Social corporatism is a form of economic tripartite
Tripartism
Tripartism refers to economic corporatism based on tripartite contracts of business, labour, and state affiliations within the economy. Each is to act as a social partner to create economic policy through cooperation, consultation, negotiation, and compromise...

 corporatism
Corporatism
Corporatism, also known as corporativism, is a system of economic, political, or social organization that involves association of the people of society into corporate groups, such as agricultural, business, ethnic, labor, military, patronage, or scientific affiliations, on the basis of common...

 supported by social democratic
Social democracy
Social democracy is a political ideology of the center-left on the political spectrum. Social democracy is officially a form of evolutionary reformist socialism. It supports class collaboration as the course to achieve socialism...

 political parties
Political party
A political party is a political organization that typically seeks to influence government policy, usually by nominating their own candidates and trying to seat them in political office. Parties participate in electoral campaigns, educational outreach or protest actions...

 based upon "social partnership" between capital
Capital (economics)
In economics, capital, capital goods, or real capital refers to already-produced durable goods used in production of goods or services. The capital goods are not significantly consumed, though they may depreciate in the production process...

 and labour interest groups as well as between the market economy
Market economy
A market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Market economies can range from hypothetically pure laissez-faire variants to an assortment of real-world mixed...

 and state regulation
Economic interventionism
Economic interventionism is an action taken by a government in a market economy or market-oriented mixed economy, beyond the basic regulation of fraud and enforcement of contracts, in an effort to affect its own economy...

 that is considered a compromise to regulate conflict between capital and labour by mandating them to engage in mutual consultations based that are mediated by the government. Social corporatism developed in the post-World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

 period. Social corporatism has been developed by social democrats in European
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

 countries such as Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...

, Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...

, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

 and Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....

.

Position on class conflict: class compromise

Some controversy has existed in the political left
Left-wing politics
In politics, Left, left-wing and leftist generally refer to support for social change to create a more egalitarian society...

 over social corporatism on the issue of class conflict
Class conflict
Class conflict is the tension or antagonism which exists in society due to competing socioeconomic interests between people of different classes....

, it has been identified in a critical manner by some on the revolutionary
Revolutionary
A revolutionary is a person who either actively participates in, or advocates revolution. Also, when used as an adjective, the term revolutionary refers to something that has a major, sudden impact on society or on some aspect of human endeavor.-Definition:...

 left as a form of regulated capitalism
Capitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...

 that has abandoned the concept of class conflict between the bourgeoisie and the proletariat
Proletariat
The proletariat is a term used to identify a lower social class, usually the working class; a member of such a class is proletarian...

 in its recognition of private property
Private property
Private property is the right of persons and firms to obtain, own, control, employ, dispose of, and bequeath land, capital, and other forms of property. Private property is distinguishable from public property, which refers to assets owned by a state, community or government rather than by...

 and for placing privately-owned enterprise on an equal level to trade unions
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...

. Others on the left counter these criticisms by the revolutionary left by claiming that social corporatism has been progressive
Progressivism
Progressivism is an umbrella term for a political ideology advocating or favoring social, political, and economic reform or changes. Progressivism is often viewed by some conservatives, constitutionalists, and libertarians to be in opposition to conservative or reactionary ideologies.The...

 in providing institutional legitimacy to the labour movement that recognizes the existence of ongoing class conflict between the bourgeoisie and the proletariat but seeks to provide peaceful resolutions to disputes arising from the conflict based on moderation rather than revolution. Thus proponents of social corporatism consider it a class compromise within the context of existing class conflict.

1930s-1970s: Norway, Sweden, and Austria

The development of social corporatism began in Norway and Sweden in the 1930s and was consolidated in the 1960s and 1970s. The system was based upon the dual compromise of capital
Capital (economics)
In economics, capital, capital goods, or real capital refers to already-produced durable goods used in production of goods or services. The capital goods are not significantly consumed, though they may depreciate in the production process...

 and the labour as one component and the market and the state as the other component. Social corporatism developed in Austria under the post-World War II coalition government of the Social Democratic Party of Austria
Social Democratic Party of Austria
The Social Democratic Party of Austria is one of the oldest political parties in Austria. The SPÖ is one of the two major parties in Austria, and has ties to trade unions and the Austrian Chamber of Labour. The SPÖ is among the few mainstream European social-democratic parties that have preserved...

 and the Austrian People's Party
Austrian People's Party
The Austrian People's Party is a Christian democratic and conservative political party in Austria. A successor to the Christian Social Party of the late 19th and early 20th centuries, it is similar to the Christian Democratic Union of Germany in terms of ideology...

. Social corporatism in Austria protects private property in exchange for allowing the labour movement to have political recognition and influence in the economy, in order to avoid the harsh class conflict that plagued Austria in the 1930s.
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