Most developing countries are capitalistic and still have a system where when you go into a shop and talk to somebody, it's often the person who owns that shop. It's part of the many reasons I'm a huge fan of decentralization in basically everything. It's absolutely wonderful.

I don't think capitalism inherently trends towards corporatism. Very few companies can grow massively on their own merit. It's often a mixture of anti-competitive behavior and mergers/acquisitions. So one obvious thing is to actually prevent mergers/acquisitions unless there is a provable and immediate benefit to customers, and split up companies if that benefit can be shown, to a civil law standard, to have not played out at any point over the next let's say 20 years. And obviously crack down hard on anti-competitive behavior with criminal consequences for executives and board members.

Boom, corporatism solved. But you need to solve it before it happens because otherwise you end up in a scenario where corporations will eventually also come to own politicians.