Corporatism and Institutionalism

2834 Words12 Pages
Topic: A crucial part of South Africa’s transitional development has been the institutionalisation of a ‘social contract’ between state, labour and capital; what Catchpowle and Cooper refer to as ‘corporatism’. In your view, what has this politically and economically delivered and to whom? Do you think such a ‘social contract’ is a necessary component of, or an impediment to, democratic development? Explain your answer. This paper aims to discuss whether or not the institutionalisation of what Catchpowle and Cooper (2003) refer to as ‘corporatism’ or the ‘Social Contract’ between the state, labour and the economy has politically and economically delivered and for whom it has and/or has not for. This paper will also be discussing whether or not the ‘Social Contract’ is a necessary component of, or an impediment to, democratic development. This will be done making use of the work of scholars who wrote on the subject and discussing this with regard to this paper and the stand-point that is taken. This paper will define the relevant theories and concepts in order to establish firm understandings of the topic, practical examples of contemporary situations will be used in order to demonstrate the points that will be made in the paper and then this paper will go on to discuss the topic in further detail. In order for this paper to be able to continue with this discussion, a firm understanding of the relevant terms, theories and concepts must be established. The concept to which Catchpowle and Cooper refer to as ‘Corporatism’ is one that they explain as a phenomenon the is not very different to the models used by states like Kearing and Hawke in Australia and Menem in Argentina which are state that, at different levels, made use of corporatist arrangements to ensure that the system of neoliberal free market policies on the part of the leadership of trade unions. These
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