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 ( ) 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 The First Republic was proclaimed in 1792.

Political instability and relative (to Britain, Germany) lack of economic development Napoleon Restoration July Monarchy Second Republic Second Empire Paris Commune 1871 Third Republic Vichy Regime

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)