Corporatism is a key economic and political feature of fascist systems, representing a “third way” between unfettered capitalism and state socialism. It emphasizes the organization of society into industrial and professional syndicates or “corporations” that are integrated with the state.

Under corporatism, industries are typically organized into state-controlled bodies comprising representatives of employers, workers, and the government. These corporations are intended to mediate disputes, set production goals, and ensure that economic activity serves national interests.

The theoretical aim of corporatism is to achieve social harmony and national unity by transcending class conflict. By bringing labor and capital together under state guidance, fascist regimes sought to eliminate strikes and promote cooperation for the greater good of the nation.

In practice, however, corporatism in fascist systems often resulted in the suppression of independent labor movements and the prioritization of the state’s agenda and the interests of powerful industrialists who were aligned with the regime.

The state exerted significant control over the economy through these corporatist structures, directing production, regulating wages and prices, and allocating resources in accordance with nationalistic goals, including military buildup and autarky (economic self-sufficiency).

While private property and enterprise might nominally exist under corporatism, they are heavily regulated and subordinated to the state’s directives. Individual economic freedoms are curtailed in favor of national economic objectives as defined by the fascist leadership.

Critics argue that corporatism in fascist systems often served as a tool to consolidate the power of the ruling party and suppress dissent, rather than genuinely representing the interests of all economic stakeholders. Labor unions, if permitted, were typically state-controlled.

Ultimately, the corporatist model in fascist regimes demonstrates the overarching principle of state control over all aspects of society, including the economy, where industry is harnessed and directed to serve the aims of the ultranationalist and authoritarian state.