Dirigisme and the French Economy
Dirigisme is an economic system where the state exerts a strong directive role over a capitalist economy. This concept played a significant role in shaping the economic landscape of France during the post-World War II era. The term "dirigisme" is derived from the French word "diriger," meaning "to direct."
Historical Context
The roots of French dirigisme trace back to the aftermath of World War II, when the country sought to rebuild its devastated economy. The French government adopted policies that included substantial state-directed investment, the establishment of state enterprises in strategic domestic sectors, and the use of indicative economic planning to supplement the market mechanism. This approach was not synonymous with a fully state-controlled command economy but rather a mixed economy with a significant public sector presence.
During the "Trente Glorieuses" (the Glorious Thirty), which refers to the thirty years from 1945 to 1975, France experienced unprecedented economic growth, averaging 5.1% annually. This era was characterized by a demographic boom and rapid modernization of the French economy.
Technocratic Influence
The success of dirigisme in France was partly due to the development of a meritocratic technocracy. High-level administrators were supplied by the École Nationale d'Administration, while leadership positions in industry were often filled by Corps of Mines state engineers and personnel trained at the École Polytechnique.
Shift in Economic Policy
The pivot away from dirigisme began in the 1980s. Under Socialist President François Mitterrand, the government initially expanded state enterprise in the economy, nationalizing several industries and banks. However, economic challenges and inflation of the French Franc prompted a shift in policy by 1983. The government renounced dirigisme in favor of more conservative economic measures, marking the start of an era known as "rigueur," which emphasized fiscal restraint.
Legacy and Modern Context
Although dirigisme has largely receded, some of its traits remain embedded in the French economy. The concept of "national champions," where key industries are supported by the state to enhance competitiveness on an international scale, is a legacy of post-war dirigisme. This approach is emblematic of the Gaullist era and remains influential in certain sectors.