Liberal corporatism
Encyclopedia
Liberal corporatism refers to the application of economic corporatism
by liberal
political parties and organizations, that recognizes the bargaining interests of multiple groups within society, such as in the business, labour, and agricultural sectors and licenses them to engage in bargaining over economic policy with the state. Liberal corporatism is often in conflict from proponents of liberal pluralism that opposes the granting of power to organized interest groups. English liberal philosopher John Stuart Mill
supported corporatist-like economic associations as needing to predominate in society to create equality for labourers and give them a voice in management through democratic economic rights. Unlike a number of other forms of corporatism, liberal corporatism does not reject capitalism or individualism
, but believes that the capitalist firm is a social institution that requires its managers to go beyond achieving the bottom line
, by recognizing the needs of their members. This liberal corporatist ethic was similar to Taylorism but called for democratization of the capitalism firm. Liberal corporatists believed that inclusion of all members in the election of management would bring them into the process of management and in effect "reconcile ethics and efficiency, freedom and order, liberty and rationality".
Liberal corporatism was an influential component of the progressivism in the United States
that has been referred to as "interest group liberalism". The support by labour leaders' advocacy of liberal corporatism of the U.S. progressives is believed to have been influenced by an attraction to the syndicalism
and particularly the anarcho-syndicalism
at the time in Europe. In the United States, economic corporatism involving capital-labour cooperation was influential in the New Deal
economic program of the United States in the 1930s as well as in Fordism
and Keynesianism. Liberal corporatism is commonly supported by proponents in Austria
, Denmark
, Finland
, Norway
, and Sweden
.
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...
by liberal
Liberalism
Liberalism is the belief in the importance of liberty and equal rights. Liberals espouse a wide array of views depending on their understanding of these principles, but generally, liberals support ideas such as constitutionalism, liberal democracy, free and fair elections, human rights,...
political parties and organizations, that recognizes the bargaining interests of multiple groups within society, such as in the business, labour, and agricultural sectors and licenses them to engage in bargaining over economic policy with the state. Liberal corporatism is often in conflict from proponents of liberal pluralism that opposes the granting of power to organized interest groups. English liberal philosopher John Stuart Mill
John Stuart Mill
John Stuart Mill was a British philosopher, economist and civil servant. An influential contributor to social theory, political theory, and political economy, his conception of liberty justified the freedom of the individual in opposition to unlimited state control. He was a proponent of...
supported corporatist-like economic associations as needing to predominate in society to create equality for labourers and give them a voice in management through democratic economic rights. Unlike a number of other forms of corporatism, liberal corporatism does not reject capitalism or individualism
Individualism
Individualism is the moral stance, political philosophy, ideology, or social outlook that stresses "the moral worth of the individual". Individualists promote the exercise of one's goals and desires and so value independence and self-reliance while opposing most external interference upon one's own...
, but believes that the capitalist firm is a social institution that requires its managers to go beyond achieving the bottom line
Net income
Net income is the residual income of a firm after adding total revenue and gains and subtracting all expenses and losses for the reporting period. Net income can be distributed among holders of common stock as a dividend or held by the firm as an addition to retained earnings...
, by recognizing the needs of their members. This liberal corporatist ethic was similar to Taylorism but called for democratization of the capitalism firm. Liberal corporatists believed that inclusion of all members in the election of management would bring them into the process of management and in effect "reconcile ethics and efficiency, freedom and order, liberty and rationality".
Liberal corporatism was an influential component of the progressivism in the United States
Progressivism in the United States
Progressivism in the United States is a broadly based reform movement that reached its height early in the 20th century and is generally considered to be middle class and reformist in nature. It arose as a response to the vast changes brought by modernization, such as the growth of large...
that has been referred to as "interest group liberalism". The support by labour leaders' advocacy of liberal corporatism of the U.S. progressives is believed to have been influenced by an attraction to the syndicalism
Syndicalism
Syndicalism is a type of economic system proposed as a replacement for capitalism and an alternative to state socialism, which uses federations of collectivised trade unions or industrial unions...
and particularly the anarcho-syndicalism
Anarcho-syndicalism
Anarcho-syndicalism is a branch of anarchism which focuses on the labour movement. The word syndicalism comes from the French word syndicat which means trade union , from the Latin word syndicus which in turn comes from the Greek word σύνδικος which means caretaker of an issue...
at the time in Europe. In the United States, economic corporatism involving capital-labour cooperation was influential in the New Deal
New Deal
The New Deal was a series of economic programs implemented in the United States between 1933 and 1936. They were passed by the U.S. Congress during the first term of President Franklin D. Roosevelt. The programs were Roosevelt's responses to the Great Depression, and focused on what historians call...
economic program of the United States in the 1930s as well as in Fordism
Fordism
Fordism, named after Henry Ford, is a modern economic and social system based on industrial mass production. The concept is used in various social theories about production and related socio-economic phenomena. It has varying but related meanings in different fields, as well as for Marxist and...
and Keynesianism. Liberal corporatism is commonly supported by proponents in 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...
, Denmark
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...
, Finland
Finland
Finland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...
, 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...
, 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....
.