Statism (or etatism) is an ideology advocating the use of states to achieve goals, both economic and social. Economic statism, for instance, promotes the view that the state has a major and legitimate role in directing the economy, either directly through state-owned enterprises and other types of machinery of government, or indirectly through economic planning. It may also refer to a political philosophy that holds that
sovereignty is vested not in the people but in the national state, and that all individuals and associations exist only to enhance the power, the prestige, and the well-being of the state. The fascist concept of statism, which as seen as synonymous with the concept of nation, and corporatism repudiates individualism and exalts the nation as an organic body headed by the Supreme Leader and nurtured by unity, force, and discipline.
Objectivists define statism as
a system of institutionalized violence and perpetual civil war, that leaves men no choice but to fight to seize power over one another.
The term statism is sometimes used to refer to state capitalism or highly-regulated market economies with large amounts of government intervention. It is also used to refer to state socialism or co-operative economic systems that use the state, through nationalization, as a means of running industry.
Statism reached its highest point in the centrally planned fascist (Nazi Germany) and communist (Soviet Union) countries, but exists in varying degrees in every country in the world. Between the end of World War II and the fall of the Soviet Union, many Western European nations ran mixed economies (10-45% public). In Singapore, 60% of the country's GDP comes from government-linked companies. State-run industries are part of the public sector.