Encyclopedia:
Dirigisme,
Talk:Dirigisme
Dirigisme (from the
French) (in English also "dirigism" although per the
OED both spellings are used) is an
economic term designating an economy where the
government exerts strong directive influence.
While the term has been applied occasionally to centrally
planned economies, where the government effectively controls production and allocation of resources (in particular, to certain
socialist economies where the national government owns the means of production), it originally had neither of these meanings when applied to
France, and generally designates a mainly
capitalist economy with a strong economic participation by government. Most modern economies are
dirigiste to some degree – for instance, governmental action may be exercised through subsidizing research and developing new technologies, or through government procurement, especially
military.
France
Before the
Second World War, France had a relatively fragmented
capitalist economic system, which generally operated under traditional
laissez-faire economic policies. The many small companies, often family-owned, were often not dynamic and efficient when compared to the large industrial groups of
Germany or the
United States.
The Second World War laid waste to France. Railroads and industries were destroyed by aerial
bombardment and
sabotage; industries were seized by Nazi Germany; the population lived with
rationing for years. Some sections of the French business and political world lost authority after collaborating with the German occupiers.
Post-war French governments, from whichever political side, generally sought rational, efficient, economic development, with the long-term goal of matching the highly-developed and technologically-advanced economy of the
United States. The main French tool was indicative central planning, through plans designed by the
Commissariat au plan ("Commission for the Plan"). Contrary to the governments of the
Soviet Bloc, however, the French government never owned more than a minority of industry, and did not seek to enforce its economic directions in authoritarian ways; instead, it used various incentives. Also, France never ceased to be a mainly capitalist country.
Because French industry prior to the Second World War was weak, due to fragmentation, the French government encouraged mergers and the formation of "national champions", large industry groups backed by the government.
Two areas where the French government sought greater control were
infrastructure and the transportation system. The French government owned the national railway company
SNCF, the national electricity utility
EDF, the national natural gas utility
GDF, the national airline
Air France;
phone and
postal services were operated as the
PTT administration. Interestingly, the government chose to devolve the construction of most
autoroutes (freeways) to semi-private companies rather than to administer them itself. Other areas where the French government directly intervened were defense, nuclear and aerospace industries (
Aérospatiale).
This development was marked by
volontarisme, or the will to overcome all difficulties (War-related devastation, lack of natural resources...) through willpower and ingenuity. For instance, following the
1973 energy crisis, the saying "In France we don't have oil, but we have ideas" was coined. Voluntarism showed an obsession with the
modernization of the country, resulting in a variety of ambitious plans imposed by the state. Examples of this trend include the extensive use of
nuclear energy (close to 80% of French electrical consumption), the
Minitel, an early online system for the masses, and the
TGV, a
high-speed rail network.
The development of French dirigisme coincided with the development of
meritocratic technocracy: the
École Nationale d'Administration supplied the state with high-level administrators, while leadership positions in industry were staffed with
Corps of Mines state engineers and other personnel trained at the
École Polytechnique.
During the
1945-
1975 period, France experienced unprecedented
economic growth (4.5% on average) and a
demographic boom, leading to the coinage of the term
Trente Glorieuses ("Thirty Glorious
years").
Dirigisme flourished under the
center-right governments of
Charles de Gaulle and
Georges Pompidou. In those times, the policy was viewed as a middle way between the American policy of little state involvement and the Soviet policy of total state control. In
1981,
Socialist president
François Mitterrand was elected, promising even more state intervention in the economy; his government soon
nationalised industries and banks. However, in
1983 the initial bad economic results forced the government to renounce dirigisme and start the era of
rigueur ("rigour"). Subsequent governments never have considered economic
dirigisme again, though some of its traits remain.
Bibliography
* Cohen, Élie.
Le Colbertisme "high tech" : économie des Telecom et du Grand Projet (Paris : Hachette, 1992) ISBN 2-01-019343-1.
See also
Philosophic roots:
*
Mercantilism*
Mixed economy*
ColbertismRelated systems:
*
American School*
Japanese post-war economic miracle*
German post-war economic model*
National Policy of Canada (1876-1920)Category:Political economyCategory:History of Francefr:Interventionnisme