Difference Between Capitalism and Corporatism

Capitalism is only associated with personal rights and benefits. It does not relate anything to the public interest. The person who operates has full ownership or liability over the business or institutions.

Corporatism, on the other hand, works for public benefit or social benefit. These types of institutions or organizations work under government rules and regulations.

Comparison Table Between Capitalism and Corporatism

Parameters of ComparisonCapitalismCorporatism
DefinitionCapitalism is an economic body related to personal or private ownership that deals with production for personal benefit.Corporatism is a political belief which illustrates corporate groups such as the military, business, etc, working for the benefit of society.
LiabilityIn Capitalism individual has full liability related to anything.In Corporatism, there is only limited liability given to organizations or institutions.
Exchange typeThere is a voluntary exchange or free exchange without any force.There is an involuntary exchange, and taxes are taken by the government.
Market typeThe market here is more competitive in nature as there is no imposition by the government. The market here is dominated and has less competition.
SponsorshipsThe companies or institutions are independent in nature because an individual has all the rights.The funding or sponsorship is done by the government organizations.
OwnershipIn Capitalism, the decisions are independent, and only the owner has all the rights. In Corporatism, the institutions or companies follow government rules and policies.

What is Capitalism?

Capitalism is a financial order that is based on personal ownership. The owner here has full authority over his or her business or institutions etc.

Capitalism characteristics can be concluded as price systems, property, market competitions, etc., the decision making, financial rights, and profit margin are fully set by the owner of the business or institutions.

Capitalism also creates inequality because only one has full rights. And also, in Capitalism, the voluntary exchange takes place in which sellers and buyers are free from any type of force during any transaction of money or profit.

What is Corporatism?

Corporatism is connected with social benefits. The market in Corporatism has not much competition as compared to Capitalism because the authority is with the government, and power is only given to one or two organizations or institutions running or operating in the market.

The exchange which takes place in Corporatism is known as an involuntary exchange which means that government rules and regulations are followed instead of individual authority.

Corporatism-related businesses or institutions work under government rules, and half of the authority is given to the government. The profit or benefit made is for the people or public of that area.

Main Differences Between Capitalism and Corporatism

  1. In Capitalism, the market is more competitive in nature as there is no imposition by the government bodies. But in Corporatism, the market is dominated by one or two organizations and has less competition.
  2. In Corporatism, an involuntary exchange takes place, and taxes are taken by the government. While in Capitalism, there is a voluntary exchange or free exchange without any force.
Difference Between Capitalism and Corporatism


People should know about their rights both personally and as public. Several policies have been created for the people since the constitution is made to give people what they want.

Corporatism contains those organizations which come under government authority things about the public benefit and are funded by state governments.


  1. https://books.google.com/books?hl=en&lr=&id=2HdNDwAAQBAJ&oi=fnd&pg=PR3&dq=capitalism&ots=nsFBFqSj2i&sig=ynnwlGhO0uqDFX3CXwx7Pagg4A8
  2. https://www.jstor.org/stable/23998635
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