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Corporatocracy, in social theories that focus on conflicts and opposing interests within society, denotes a system of government that serves the interest of, and may be run by, corporations and involves ties between government and business. Where corporations, conglomerates, and/or government entities with private components, control the direction and governance of a country, including carrying out economic planning (notwithstanding the "free market" label).[1]
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The concept of corporatocracy is that corporations, to a significant extent, have massive power over governments, including those governments nominally elected by the people. They exercise their power via corporate monopolies and mergers, and through their subsequent capacity to leverage broad economic interests. This is accomplished by legal mechanisms (i.e., lobbyists, campaign contributions to office holders and candidates, threats to leave the state or country for another with less oversight and/or more personally beneficial subsidies, etc.), which renders them immune to vague accusations and prosecution. It may also refer to an unrealized form of government or theoretical corporate governance in national or international affairs.
"The prospect of domination of the nation's scholars by Federal employment, project allocations, and the power of money is ever present – and is gravely to be regarded." - Dwight D. Eisenhower Farewell Address to the Nation January 17, 1961[2]
Economist Jeffrey D. Sachs described America as a corporatocracy in his 2011 book The Price of Civilization.[3] He suggested that it arose from four trends (1) weak national parties and strong political representation of individual districts (2) the large U.S. military establishment after World War II (3) big corporate money financing election campaigns (4) globalization tilting the balance away from workers.[3]