CORPORATIST THEORY,

OR CORPORATISM
From Pluralism To Networks
Chap#4
Introduction
• Schmitter presents corporatist theory and describes it as a system
of interest representation. He defines the ideal type of
corporatism as:
• “A system of interest representation in which the constituent
units are organized into a limited number of singular, compulsory,
non-competative, hierarchically ordered and functionally
differentiated categories, recognized or licensed (if not created)
by the state and granted a deliberate representational monopoly
within their respective categories in exchange for observing
certain controls on their selection of leaders and articulation of
demands and supports.” (Schmitter, 1974, pp. 93–4)
• In corporatism, organizations, workers, employers and
different groups with common interests would be organized
into industrial and professional corporations, represents their
members in dealing with the state to recognize their activities.
• Large interest organizations corporate with each other and
with state authorities to represents their interests and also
participate in policy making process. for example trade
unions, industries, employer associations, and government
negotiating on wage setting agreements, the making of labor
laws, and of establishing incentive policies.
• When these interest groups, trade unions, and employer association are
organize and build a close relationship with the state, they don't
remains mere interest groups but also share the state's power. So they
become the governing institute within a state. The purpose of this
corporation is to maintain harmony and avoid conflict by allowing these
groups to share power.
• The economic aspects of corporatism consist of a system of private
ownership of the means of production combined with public control.
For examples, Pakistan government’s involvement in the development of
policies on prices and incomes and the attempt to develop planning
agreements with industry. These policies will be developed by the state
in collaboration with business and trade union elites.
Policy Networks and Policy
Communities
• The world has witnessed rapid developments since the 1990s in
many areas, including political, economic or social. The
emergence of many new terms and concepts such as globalization,
governance, terrorism, etc. make the role of state complex. These
developments have changed the role of the state and thus, new
trends in government administration and re-invention and in
managing the affairs of state and society have existed. Moreover,
as the role of the state changed, its level of interaction with new
actors such as the private sector, civil society organizations and
international organizations has increased.
• Interdependence was maximized and came to play a
significant role in shaping public policies. Several studies
consider public policies as the outcome of formal and
informal interactions among a number of actors at the
local and central level. They also perceive public policies
as an outcome of the interplay of those actors who are
usually members of an organized network or community.
• Policy networks consist of governmental and societal actors who
interact with one another and participate in policy process. The
relationship is non-hierarchal and interdependent in nature that
links a variety of actors, who share common interests and also
share resources to pursue these shared interests with cooperation
to achieve common goals. Interdependence is central to the
network approach. Actors in networks are interdependent
because they need the resources of other actors to achieve their
goals.
• Policy network refers to sets of formal and informal institutional
linkages between governmental and other actors having shared
interests in public policy making and implementation. These
institutions are interdependent. Policies emerge from the
bargaining between the networks’ members, examples include
the professions, trade unions and big business, experts media,
consulting firms.
• Groups and the government in a policy network are mutually
dependent, as the, government wishes to achieve specific policy
goals with the help of incorporated groups (interest group), whilst
the groups wish to influence policy.
• A policy community can be defined as the actors in a policy
network.
• Policy communities are groupings of government agencies,
pressure groups, media people, and individuals, including
academics, who, for various reasons, have an interest in a
particular policy field and attempt to influence it.
• Policy communities are the actors while policy network is the
nature of relationship between these actors.
Features of Policy Communities
• Comparatively limited memberships often with economic
or professional interests. Because large number of members
of the policy community will create great obstacles.
• Shared values, basic belief and frequent interaction among
community members. Interaction enhances the degree of
integration.
• Exchange of resources and information, with group leaders
able to regulate this.
• A relative balance of power amongst members
Characteristics of Policy Networks
• Large and diverse
• Fluctuating levels of contacts and lower levels of
agreement than policy communities
• Varying resources and an inability to regulate their use
on a collective basis
• Unequal power