France: Political Economy
I. Backward French
C i li
Capitalism
II. Postwar
Modernization
III. Strains on the
System
IV. Free Market France?
I. Backward French Capitalism
„
„
Small, family-owned firms
Traditional strength in luxury goods
‰
„
„
„
Conservative managers
Poor class relations
Role of the State
‰
„
Tough
g to ‘mass produce’
p
Protect people from the market
The shock of defeat in 1940
II. Postwar Modernization
„
Modernization through planning
‰
„
„
‘Indicative Planning’
g
Control of Finance
‰
„
„
Commissariat General du Plan and Jean Monnet
‘National
National Champions’
Champions
Winners and Losers
1945-75 -- les
l trente glorieuses
l
(‘Thirty Glorious Years)
Jean Monnet
French Modernizer
III. Strains on the System
„
„
„
„
„
„
May 1968
Oil Shocks
k (1973 andd 1979)
Slowdown in productivity gains
Minitel Terminal
France’s ‘National
Champion’
Developing nation competition
in basic industries (steel,
(steel auto,
auto shipbuilding)
Poor French competitiveness in advanced
ind stries (computers,
industries
(comp ters microelectronics)
Socialist’s liberalization in 1980s
IV. A Free Market France?
„
Privatization
‰
„
„
Deregulation and Liberalization
EU and the Single Currency
‰
‰
„
„
Continued State Influence
Convergence Criteria
Growth and Stabilization Pact
Welfare State and Employment
p y
France in the Global Economy
LIONEL JOSPIN
“Yes to the market
economy,
No to the market
society ”
society.
ISSUES IN FRENCH POLITICS
„
The Economic Challenge
‰
„
Growth, Employment, and
Productivity
French Identity
‰
Immigration
France and the EU
„ France and the US
„
A much warmer
relationship…
The Weak French
Economy
Source: OECD
Source: IMF