1 - Three Legacies of Dirigisme

Summary

Chapter 1 shows that economic liberalization is contested in France in multiple ways. Liberalizing reforms are routinely met with strikes and demonstrations; they are often defeated by protest movements; and, in some cases, the leaders who launch such reforms lose their capacity to govern or subsequent elections as a result. The chapter demonstrates that economic liberalization – as measured by indices of fiscal policy, labor market policy, and business competition – has made less headway in France than in the leading European political economies. It also demonstrates that this limited liberalization is not the byproduct of a well-functioning alternative to the liberal economic model. Chapter 1 presents and critiques three explanations of French resistance and contestation of economic liberalization, centered on economic culture, political leadership, and the character of the welfare regime respectively. It then presents the central argument of the book, which is that the pervasive contestation of economic liberalization in France can be traced to the policy, party-political, and institutional legacies of France’s postwar statist or dirigiste economic model. Although the dirigiste model was largely dismantled decades ago, the legacies of this model continue to shape the politics of economic liberalization in the present day.