French Economic Order, A brief overview of the major shifts in the French economy, the economic sectors and companies in France

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Seminar paper from the year 2004 in the subject Politics - International Politics - Topic: European Union, grade: 1,5, Hamburg University of Ecomomy and Policy (European Studies), course: Political and economic systems in comparative perspective, language: English, abstract: This paper seeks to give a broad overview of the major developments in the French economic ordersince the Second World War. First by enlarging upon historical changes in the French economicpolicy and further by describing the structure of the economic sectors of the French economy today,focusing on the French companies. The strengths and weaknesses of the French industrial productionwill be reflected by an analysis of its export and import sectors. As a theoretical base for the paper serves the Varieties of Capitalism approach by Hall and Soskice. In their theory of comparative capitalism they regard France as one possible model of capitalism, namely in between a coordinated and a liberal market economy (CME/LME). In this paper Hall and Soskicestheory is supposed to have an explanatory function for the described institutional characteristics in theFrench economic order. Generally Hall and Soskices approach has to be seen in the tradition ofcomparative political economy, yet going beyond former theories as Shonfields modernizationapproach, neocorporatism or the social systems of production approach. By drawing on game theoryHall and Soskice even create a interdisciplinary approach addressing both econonomics and politicalscientists. Hall/Soskice try to provide a new theoretical framework to analyse and understand thenationa l similarities and differences in political and economic institutions, shifting the focus ofattention to the role of firms in the economic performance and the institutions that condition or alterinteraction between economic actors. In these interactions, various actors e.g. firms rationally try todefend their interests. For firms the five most important interaction spheres vital for the firmsdevelopment, production and profitability are industrial relations, vocational training and education,corporate governance, inter- firm relations and the interaction with their own employees. Interactionslike these often create uneven information levels and thus entail coordination problems. Hall andSoskice take the view that the different ways in which firms handle these coordination problems canbe used to compare national political economies. Firms in LMEs rather tend to solve theircoordination problems with the help of market mechanisms. Firms in CMEs refer to non-marketrelationships, e.g. institutions that promote the exchange of information among actors. [...]

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