You can't separate the state out like that and pretend it's not a player. Capitalism is what gives rise to corporatism.
Oh, and welfare state is not a bad word. Some of the most prosperous and equitable countries in the world are welfare states[0].
Oh, and welfare state is not a bad word. Some of the most prosperous and equitable countries in the world are welfare states[0].
Corporatism is a legal construction of the state: http://en.wikipedia.org/wiki/Corporation#Formation
Some of the worst functioning countries on earth are also very poorly run welfare states. Feel free to point out several poorly functioning, free market Capitalism countries though.
Socialism is what gives rise to Corporatism. The intrusion of government into the economy - rather than the proper separation of the two - through regulation and bribes, opening up a flood gate of protectionism, lobbying and special favors.
I'm well aware of the arguments on the nordic model. Most of them had to reform their poorly functioning welfare models over the last few decades (see: Sweden).
http://www.forbes.com/forbes/2009/0803/international-invest-...