Dirigisme
Encyclopedia
Dirigisme is an economy in which the government
exerts strong directive influence. While the term has occasionally been applied to centrally planned economies
, where the state effectively controls both production and allocation of resources (in particular, to certain socialist economies where the means of production are assets of the state), it originally had neither of these meanings when applied to France
, and generally designates a mainly capitalist
economy with strong economic participation by government.
Most modern economies can be characterized as dirigiste to some degree – for instance, state economic action may be exercised through subsidizing research and developing new technologies, or through government procurement, especially military
(i.e. a form of mixed economy). China is the clearest example to date.
Dirigisme is from the French
. In English it is also "dirigism", although both spellings are used by the OED
.
economic system. The many small companies, often family-owned, were often not dynamic and efficient in comparison to the large industrial groups in 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 the United Kingdom). 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 général du plan ("Commission for the Plan"). Unlike 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, the belief that difficulties (e.g. postwar devastation, lack of natural resources) could be overcome 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. Volontarisme emphasized modernization
, resulting in a variety of ambitious state plans. 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 enterprise 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"). Dirigisme has remained out of favour with subsequent governments, though some of its traits remain.
(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
. Regardless of the differing components found in the historic fascist state, the opposition to liberalism
including democracy and equality before the law, are agreed qualities of all.
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, in varying degrees throughout the post-colonial period.
Related systems:
Form of government
A form of government, or form of state governance, refers to the set of political institutions by which a government of a state is organized. Synonyms include "regime type" and "system of government".-Empirical and conceptual problems:...
exerts strong directive influence. While the term has occasionally been applied to centrally planned economies
Planned economy
A planned economy is an economic system in which decisions regarding production and investment are embodied in a plan formulated by a central authority, usually by a government agency...
, where the state effectively controls both production and allocation of resources (in particular, to certain socialist economies where the means of production are assets of the state), it originally had neither of these meanings when applied to France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
, and generally designates a mainly capitalist
Capitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...
economy with strong economic participation by government.
Most modern economies can be characterized as dirigiste to some degree – for instance, state economic action may be exercised through subsidizing research and developing new technologies, or through government procurement, especially military
Military
A military is an organization authorized by its greater society to use lethal force, usually including use of weapons, in defending its country by combating actual or perceived threats. The military may have additional functions of use to its greater society, such as advancing a political agenda e.g...
(i.e. a form of mixed economy). China is the clearest example to date.
Dirigisme is from the French
French language
French is a Romance language spoken as a first language in France, the Romandy region in Switzerland, Wallonia and Brussels in Belgium, Monaco, the regions of Quebec and Acadia in Canada, and by various communities elsewhere. Second-language speakers of French are distributed throughout many parts...
. In English it is also "dirigism", although both spellings are used by the OED
Oxford English Dictionary
The Oxford English Dictionary , published by the Oxford University Press, is the self-styled premier dictionary of the English language. Two fully bound print editions of the OED have been published under its current name, in 1928 and 1989. The first edition was published in twelve volumes , and...
.
Dirigisme in France
Before the Second World War, France had a relatively fragmented capitalistCapitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...
economic system. The many small companies, often family-owned, were often not dynamic and efficient in comparison to the large industrial groups in Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
or the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
.
The Second World War laid waste to France. Railroads and industries were destroyed by aerial bombardment
Bombardment
A bombardment is an attack by artillery fire directed against fortifications, troops or towns and buildings.Prior to World War I the term term was only applied to the bombardment of defenceless or undefended objects, houses, public buildings, it was only loosely employed to describe artillery...
and sabotage
Sabotage
Sabotage is a deliberate action aimed at weakening another entity through subversion, obstruction, disruption, or destruction. In a workplace setting, sabotage is the conscious withdrawal of efficiency generally directed at causing some change in workplace conditions. One who engages in sabotage is...
; industries were seized by Nazi Germany; in the immediate postwar years loomed the spectre of long years of rationing
Rationing
Rationing is the controlled distribution of scarce resources, goods, or services. Rationing controls the size of the ration, one's allotted portion of the resources being distributed on a particular day or at a particular time.- In economics :...
(such as the one enforced in the United Kingdom). 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
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. The main French tool was indicative central planning, through plans designed by the Commissariat général du plan ("Commission for the Plan"). Unlike 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
Infrastructure
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function...
and the transportation system. The French government owned the national railway company SNCF
SNCF
The SNCF , is France's national state-owned railway company. SNCF operates the country's national rail services, including the TGV, France's high-speed rail network...
, the national electricity utility EDF
Électricité de France
Électricité de France S.A. is the second largest French utility company. Headquartered in Paris, France, with €65.2 billion in revenues in 2010, EDF operates a diverse portfolio of 120,000+ megawatts of generation capacity in Europe, Latin America, Asia, the Middle East and Africa.EDF is one of...
, the national natural gas utility GDF
Gaz de France
Gaz de France was a French company which produced, transported and sold natural gas around the world, especially in France, its main market. The company was also particularly active in Belgium, the United Kingdom, Germany, and other European countries. Through its part-owned Belgian subsidiary SPE...
, the national airline Air France
Air France
Air France , stylised as AIRFRANCE, is the French flag carrier headquartered in Tremblay-en-France, , and is one of the world's largest airlines. It is a subsidiary of the Air France-KLM Group and a founding member of the SkyTeam global airline alliance...
; phone
France Télécom
France Telecom S.A. is the main telecommunications company in France, the third-largest in Europe and one of the largest in the world. It currently employs about 180,000 people and has 192.7 million customers worldwide . In 2010 the group had revenue of €45.5 billion...
and postal
La Poste
La Poste may refer to:* La Poste, the postal service of France* La Poste Suisse, the French name for Swiss Post* La Poste, the French name for De Post - La Poste - Die Post of Belgium* La Poste Tunisienne, the Tunisian postal service...
services were operated as the PTT
PTT
PTT may refer to:Chemistry and medicine:* Partial thromboplastin time, a performance indicator in medicine for coagulation status* Photothermal Therapy, A method of using light and photosensitizers for medical treatments...
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
Aérospatiale
Aérospatiale was a French aerospace manufacturer that built both civilian and military aircraft, rockets and satellites. It was originally known as Société Nationale Industrielle Aérospatiale...
).
This development was marked by volontarisme, the belief that difficulties (e.g. postwar devastation, lack of natural resources) could be overcome 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. Volontarisme emphasized modernization
Modernization
In the social sciences, modernization or modernisation refers to a model of an evolutionary transition from a 'pre-modern' or 'traditional' to a 'modern' society. The teleology of modernization is described in social evolutionism theories, existing as a template that has been generally followed by...
, resulting in a variety of ambitious state plans. Examples of this trend include the extensive use of nuclear energy
Nuclear power
Nuclear power is the use of sustained nuclear fission to generate heat and electricity. Nuclear power plants provide about 6% of the world's energy and 13–14% of the world's electricity, with the U.S., France, and Japan together accounting for about 50% of nuclear generated electricity...
(close to 80% of French electrical consumption), the Minitel
Minitel
The Minitel is a Videotex online service accessible through the telephone lines, and is considered one of the world's most successful pre-World Wide Web online services. It was launched in France in 1982 by the PTT...
, an early online system for the masses, and the TGV
TGV
The TGV is France's high-speed rail service, currently operated by SNCF Voyages, the long-distance rail branch of SNCF, the French national rail operator....
, a high-speed rail
High-speed rail
High-speed rail is a type of passenger rail transport that operates significantly faster than the normal speed of rail traffic. Specific definitions by the European Union include for upgraded track and or faster for new track, whilst in the United States, the U.S...
network.
The development of French dirigisme coincided with the development of meritocratic
Meritocracy
Meritocracy, in the first, most administrative sense, is a system of government or other administration wherein appointments and responsibilities are objectively assigned to individuals based upon their "merits", namely intelligence, credentials, and education, determined through evaluations or...
technocracy
Technocracy (bureaucratic)
Technocracy is a form of government where technical experts are in control of decision making in their respective fields. Economists, engineers, scientists, health professionals, and those who have knowledge, expertise or skills would compose the governing body...
: the École Nationale d'Administration
École nationale d'administration
The École Nationale d'Administration , one of the most prestigious of French graduate schools , was created in 1945 by Charles de Gaulle to democratise access to the senior civil service. It is now entrusted with the selection and initial training of senior French officials...
supplied the state with high-level administrators, while leadership positions in industry were staffed with Corps of Mines
Corps of Mines (France)
The Corps of Mines is the foremost of the great technical corps of the French state. It is formed of the State Engineers of the Mines...
state engineers and other personnel trained at the École Polytechnique
École Polytechnique
The École Polytechnique is a state-run institution of higher education and research in Palaiseau, Essonne, France, near Paris. Polytechnique is renowned for its four year undergraduate/graduate Master's program...
.
During the 1945-1975 period, France experienced unprecedented economic growth
Economic growth
In economics, economic growth is defined as the increasing capacity of the economy to satisfy the wants of goods and services of the members of society. Economic growth is enabled by increases in productivity, which lowers the inputs for a given amount of output. Lowered costs increase demand...
(4.5% on average) and a demographic
Demography
Demography is the statistical study of human population. It can be a very general science that can be applied to any kind of dynamic human population, that is, one that changes over time or space...
boom, leading to the coinage of the term Trente Glorieuses
Trente Glorieuses
Les Trente Glorieuses refers to the thirty years from 1945-1975 following the end of the Second World War in France. The name was first used by the French demographer Jean Fourastié...
("Thirty Glorious [years]").
Dirigisme flourished under the center-right governments of Charles de Gaulle
Charles de Gaulle
Charles André Joseph Marie de Gaulle was a French general and statesman who led the Free French Forces during World War II. He later founded the French Fifth Republic in 1958 and served as its first President from 1959 to 1969....
and Georges Pompidou
Georges Pompidou
Georges Jean Raymond Pompidou was a French politician. He was Prime Minister of France from 1962 to 1968, holding the longest tenure in this position, and later President of the French Republic from 1969 until his death in 1974.-Biography:...
. 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
François Mitterrand
François Maurice Adrien Marie Mitterrand was the 21st President of the French Republic and ex officio Co-Prince of Andorra, serving from 1981 until 1995. He is the longest-serving President of France and, as leader of the Socialist Party, the only figure from the left so far elected President...
was elected, promising even more state enterprise in the economy; his government soon nationalised
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...
industries and banks. However, in 1983 the initial bad economic results forced the government to renounce dirigisme and start the era of rigueur ("rigour"). Dirigisme has remained out of favour with subsequent governments, 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. However, the Fascist systems created by Benito MussoliniBenito Mussolini
Benito Amilcare Andrea Mussolini was an Italian politician who led the National Fascist Party and is credited with being one of the key figures in the creation of Fascism....
(Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
), Francisco Franco
Francisco Franco
Francisco Franco y Bahamonde was a Spanish general, dictator and head of state of Spain from October 1936 , and de facto regent of the nominally restored Kingdom of Spain from 1947 until his death in November, 1975...
(Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
) and Adolf Hitler
Adolf Hitler
Adolf Hitler was an Austrian-born German politician and the leader of the National Socialist German Workers Party , commonly referred to as the Nazi Party). He was Chancellor of Germany from 1933 to 1945, and head of state from 1934 to 1945...
(Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
) are a varied mix of elements from numerous philosophies, including: nationalism
Nationalism
Nationalism is a political ideology that involves a strong identification of a group of individuals with a political entity defined in national terms, i.e. a nation. In the 'modernist' image of the nation, it is nationalism that creates national identity. There are various definitions for what...
, authoritarianism
Authoritarianism
Authoritarianism is a form of social organization characterized by submission to authority. It is usually opposed to individualism and democracy...
, militarism
Militarism
Militarism is defined as: the belief or desire of a government or people that a country should maintain a strong military capability and be prepared to use it aggressively to defend or promote national interests....
, corporatism
Corporatism
Corporatism, also known as corporativism, is a system of economic, political, or social organization that involves association of the people of society into corporate groups, such as agricultural, business, ethnic, labor, military, patronage, or scientific affiliations, on the basis of common...
, collectivism
Collectivism
Collectivism is any philosophic, political, economic, mystical or social outlook that emphasizes the interdependence of every human in some collective group and the priority of group goals over individual goals. Collectivists usually focus on community, society, or nation...
, totalitarianism
Totalitarianism
Totalitarianism is a political system where the state recognizes no limits to its authority and strives to regulate every aspect of public and private life wherever feasible...
, and anti-communism
Anti-communism
Anti-communism is opposition to communism. Organized anti-communism developed in reaction to the rise of communism, especially after the 1917 October Revolution in Russia and the beginning of the Cold War in 1947.-Objections to communist theory:...
. Regardless of the differing components found in the historic fascist state, the opposition to liberalism
Liberalism
Liberalism is the belief in the importance of liberty and equal rights. Liberals espouse a wide array of views depending on their understanding of these principles, but generally, liberals support ideas such as constitutionalism, liberal democracy, free and fair elections, human rights,...
including democracy and equality before the law, are agreed qualities of all.
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, in varying degrees throughout the post-colonial period.
See also
Philosophic roots:- MercantilismMercantilismMercantilism is the economic doctrine in which government control of foreign trade is of paramount importance for ensuring the prosperity and security of the state. In particular, it demands a positive balance of trade. Mercantilism dominated Western European economic policy and discourse from...
- Mixed economyMixed economyMixed economy is an economic system in which both the state and private sector direct the economy, reflecting characteristics of both market economies and planned economies. Most mixed economies can be described as market economies with strong regulatory oversight, in addition to having a variety...
- ColbertismJean-Baptiste ColbertJean-Baptiste Colbert was a French politician who served as the Minister of Finances of France from 1665 to 1683 under the rule of King Louis XIV. His relentless hard work and thrift made him an esteemed minister. He achieved a reputation for his work of improving the state of French manufacturing...
Related systems:
- American SchoolAmerican School (economics)The American School, also known as "National System", represents three different yet related constructs in politics, policy and philosophy. It was the American policy for the 1860s to the 1940s, waxing and waning in actual degrees and details of implementation...
- Japanese post-war economic miracleJapanese post-war economic miracleThe Japanese post-war economic miracle is the name given to the historical phenomenon of Japan's record period of economic growth following World War II, spurred mainly by Japanese economic policy, in particular through the Ministry of International Trade and Industry...
- German post-war economic modelGerman modelThe term German model is most often used in economics to describe post-World War II West Germany's means of using innovative industrial relations, vocational training, and closer relationships between the financial and industrial sectors to cultivate economic prosperity.- Industrial relations...
- National Policy of Canada (1876-1920)National PolicyThe National Policy was a Canadian economic program introduced by John A. Macdonald's Conservative Party in 1876 and put into action in 1879. It called for high tariffs on imported manufactured items to protect the manufacturing industry...
- Economic interventionismEconomic interventionismEconomic interventionism is an action taken by a government in a market economy or market-oriented mixed economy, beyond the basic regulation of fraud and enforcement of contracts, in an effort to affect its own economy...
- State CapitalismState capitalismThe term State capitalism has various meanings, but is usually described as commercial economic activity undertaken by the state with management of the productive forces in a capitalist manner, even if the state is nominally socialist. State capitalism is usually characterized by the dominance or...