The French state in the international economy

John Zysman

International Organization, 1977, vol. 31, issue 4, 839-877

Abstract: The French state bureaucracy, able partially to shelter itself from Parliament and to influence the industrial sector directly, has been able to protect national interests in an economically interdependent world. It struck a regional bargain that committed agriculture to the European Community and in effect provided a German subsidy to French farmers. It mediated between the national and international market to promote industrial modernization and force a restructuring of critical industrial sectors. It has grown increasingly sophisticated in its dealings with multinational companies. Early efforts to insist on purely French operations have been abandoned, permitting the state to negotiate more effectively with the multinationals and obtain substantive rather than symbolic goods. These policies have cushioned agriculture's transition into an industrial world and helped pressure a previously protected industry to modernize. Finally, the state has played trader, trying directly to market French goods and assure payment for imports in package trade deals. The French have not been able to impose their own rules on monetary and energy matters. Yet their efforts suggest that a nation-state can use administrative or domestic economic resources to reduce its vulnerability to international developments, though it cannot of course escape from the system.

Date: 1977
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