Dirigisme 909320 195546473 2008-03-03T13:37:40Z 81.208.36.84 /* Dirigisme in France */ '''Dirigisme''' (from the [[French language|French]]) (in English also "dirigism" although per the [[Oxford English Dictionary|OED]] both spellings are used) is an [[economic]] term designating an economy where the [[Form of government|government]] exerts strong directive influence. While the term has occasionally been applied to centrally [[planned economy|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 [[capitalism|capitalist]] economy with strong economic participation by government. Most modern economies are ''dirigiste'' to some degree &ndash; for instance, governmental action may be exercised through subsidizing research and developing new technologies, or through government procurement, especially [[military]]. ==Dirigisme in France== Before the [[Second World War]], France had a relatively fragmented [[capitalism|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; in the immediate postwar years loomed the spectre of long years of [[rationing]] (such as the one enforced in [[England]]). 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 [[Electricité de France|EDF]], the national natural gas utility [[Gaz de France|GDF]], the national airline [[Air France]]; [[France Télécom|phone]] and [[la Poste|postal]] services were operated as the [[PTT]] administration. Interestingly, the government chose to devolve the construction of most [[Freeway|autoroute]]s (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 [[meritocracy|meritocratic]] [[Technocracy (bureaucratic)|technocracy]]: the [[École Nationale d'Administration]] supplied the state with high-level administrators, while leadership positions in industry were staffed with [[Corps of Mines (France)|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 [[demography|demographic]] boom, leading to the coinage of the term ''[[Trente Glorieuses]]'' ("Thirty Glorious [years]"). Dirigisme flourished under the [[right-wing|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]], [[French Socialist Party|Socialist]] president [[François Mitterrand]] was elected, promising even more state intervention in the economy; his government soon [[nationalization|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. ==Dirigisme in other Economic Systems== Economic dirigisme has been described as an inherent aspect of [[fascist]] economies by one author, Ivan T. Berend in his book "An Economic History of Twentieth-Century Europe".<ref>Tibor Ivan Berend, An Economic History of Twentieth-Century Europe, Cambridge University Press, 2005, p. 93</ref> However, the Fascist systems created by [[Benito Mussolini]] ([[Italy]]), [[Francisco Franco]] ([[Spain]]) and [[Adolf Hitler]] ([[Germany]]) are a varied mix of elements from numerous philosophies, including: [[nationalism]], [[authoritarianism]], [[militarism]], [[corporatism]], [[collectivism]], [[totalitarianism]], and [[anti-communism]].<ref>David Baker, "The political economy of fascism: Myth or reality, or myth and reality?" ''New Political Economy'', Volume 11, Issue 2 June 2006 , pages 227 – 250</ref> Regardless of the differing components found in the historic fascist state, the opposition to [[liberalism]] including democracy and equality are agreed qualities of all.<ref>"collectivism." Encyclopædia Britannica. 2007. Encyclopædia Britannica Online. [[12 January]] [[2007]] <http://www.britannica.com/eb/article-9024764> "Collectivism has found varying degrees of expression in the 20th century in such movements as socialism, communism, and fascism."; Grant, Moyra. Key Ideas in Politics. Nelson Thomas 2003. p. 21; De Grand, Alexander. Italian Fascism: Its Origins and Development. U of Nebraska Press. p. 147 "Nationalism, statism, and authoritarianism culminated in the cult of the Duce. Finally, collectivism was important...Despite general agreement on these four themes, it was hard to formulate a definition of fascism..."</ref><ref>Calvin B. Hoover, "The Paths of Economic Change: Contrasting Tendencies in the Modern World," ''The American Economic Review'', Vol. 25, No. 1, Supplement, Papers and Proceedings of the Forty-seventh Annual Meeting of the American Economic Association. (Mar., 1935), pp. 13-20; Philip Morgan, ''Fascism in Europe, 1919-1945, New York Tayolor & Francis 2003, p. 168</ref><ref>Friedrich A. Hayek. 1944. ''The Road to Serfdom''. Routledge Press</ref> Dirigisme has been brought up as a politico-economic scheme at odds with laissez-faire capitalism in the context of French overseas holdings. Countries such as Lebanon and Syria have been influenced by this motif<ref>[http://www.dailystar.com.lb/article.asp?edition_id=10&categ_id=4&article_id=86003 The Daily Star] - 'Youssef Chaitani's 'Post-Colonial Syria and Lebanon' chronicles the history of division between the neighbors'. [[17 October]] [[2007]].</ref>, in varying degrees throughout the post-colonial period. ==References== <!-- ---------------------------------------------------------- See http://en.wikipedia.org/wiki/Wikipedia:Footnotes for a discussion of different citation methods and how to generate footnotes using the <ref>, </ref> and <reference /> tags ----------------------------------------------------------- --> <div class="references-small" style="-moz-column-count:2; column-count:2;"> <references /> </div> ==Bibliography== * Baker, David, "The political economy of fascism: Myth or reality, or myth and reality?" ''New Political Economy'', Volume 11, Issue 2 June 2006 , pages 227 – 250. * 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]] * [[Jean-Baptiste Colbert|Colbertism]] Related systems: * [[American School (economics)|American School]] * [[Japanese post-war economic miracle]] * [[German model|German post-war economic model]] * [[National Policy|National Policy of Canada (1876-1920)]] [[Category:Political economy]] [[Category:20th century in France]] [[fr:Interventionnisme]]