Transcript France and Varieties of Capitalism – Jan 19

France and
Varieties of Capitalism
Jan. 19
Changing Role of the French State
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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
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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
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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
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France was the most powerful nation in
Europe in the 17th century, but in the 18th
century Britain challenged France’s preeminence.
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
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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
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In the period following WWII, the French
pioneered in developing methods to steer
and strengthen the economy.
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From guardian of the established order, the
French state became the sponsor of social
and economic progress.
Crisis of the dirigiste model
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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
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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
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liberal market economies (LMEs) US, UK,
Canada, Australia, New Zealand, Ireland
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coordinated market economies (CMEs)
Japan, most of continental Europe
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More ambiguous cases include France, Italy,
Spain, Portugal, Greece, Turkey. a
‘Mediterranean’ model?
David Coates
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market-led capitalisms (US)
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state-led capitalisms (Japan)
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negotiated or consensual social capitalisms
(Sweden, Germany)