France and Varieties of Capitalism

Jan. 19

Changing Role of the French State French Empire Development of the French State Political Instability and Economic

Conservatism Postwar dirigiste state Crisis of the dirigiste model The contemporary French state

French Empire

From the 16th to 18th century, France competed with Britain for control over North America.

Haiti became independent in 1804 (for info related to the recent disaster in Haiti, see the course website under Resources).

However, in the 19th and early 20th century, France would aggressively rebuild and extend its empire in Africa, Southeast Asia and the Pacific.

Development of the French State Louis XIV (1643-1715) sponsored the

creation of a relatively efficient state bureaucracy, separate from the Crown’s personal domain.

For most of the period from the mid-17th to the mid-18th century, France was at war with its neighbours.

Development of the French State France was the most powerful nation in

Europe in the 17th century, but in the 18th century Britain challenged France’s pre-eminence.

The attempt to raise taxes to cover state expenses and debts was one of the factors that led to the French Revolution in 1789.

The First Republic was proclaimed in 1792.

Political instability and relative (to Britain, Germany) lack of economic development Napoleon 1799-1814 Restoration 1814-1830 July Monarchy 1830-1848 Second Republic 1848-1851 Second Empire 1852-1870 Paris Commune 1871 Third Republic 1871-1940 Vichy Regime 1940-1944

Postwar dirigiste state

In the period following WWII, the French pioneered in developing methods to steer and strengthen the economy.

From guardian of the established order, the French state became the sponsor of social and economic progress.

Crisis of the dirigiste model

Slowdown in economic growth in 70s. The massive shift of workers from agriculture

to urban areas ran out of steam. Impact of energy crisis, oil shocks. New competition from new emerging

industrializing countries

Crisis of the dirigiste model

1981 Mitterrand and Socialists win elections. Facing business and international opposition,

amid significant recession. Demand stimulus simply meant French

consumers consumed more imported goods. Socialists make u-turn.

Varieties of Capitalism

Hall and Soskice

liberal market economies (LMEs) US, UK, Canada, Australia, New Zealand, Ireland

coordinated market economies (CMEs) Japan, most of continental Europe

More ambiguous cases include France, Italy, Spain, Portugal, Greece, Turkey. a ‘Mediterranean’ model?

David Coates

market-led capitalisms (US)

state-led capitalisms (Japan)

negotiated or consensual social capitalisms (Sweden, Germany)