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Recent developments in French economic planning

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Conclusions

French planning seems to have had a very real effect on the economy in its early years. Industrialists' expectations were raised and new ideas were disseminated in a subtle way, and not merely because people believed the numerical values of published forecasts. In the early 1960s the idea of a consensus was extended beyond the need for greater private investment and the plan became the focus for a national debate on priorities. This exercise was valid and effective in a period of fast and accelerating growth but later the authorities chose instead to impose their own priorities, which included turning away from planning at the industrial level. This was partly because the underlying techniques of traditional French planning were seriously flawed in an open economy, but it probably also represented ideological preferences. However the consultative mechanisms continued to exist through the 1970s, though largely restricted to the macro-economic sphere. The 7th Plan generated a serious and powerful debate about responses to the recession but this was ignored by the authorities. Somewhat surprisingly, the reduced circumstances of planning did not affect the respect for its institutions in the eyes of other social actors: unions and business.10 In calling for a restoration of planning, the Socialists were therefore responding to a real need in a society with very limited channels for dialogue between social partners who nevertheless were forced to confront one another in the macro-economic sphere. But at the time of writing it looks as if an opportunity has been lost to carry out a detailed multi-scenario reflection on medium term economic policy.

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Estrin, S., Holmes, P. Recent developments in French economic planning. Econ Plann 18, 1–10 (1982). https://doi.org/10.1007/BF00600106

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