INDUSTRIAL STRATEGY AND THE STATE IN FRANCE: MODERNIZATION AND ADJUSTMENT STRATEGIES IN THE FIFTH REPUBLIC

French industrial strategy in the postwar period is examined in the context of theories of state autonomy. The underlying continuity of industrial strategy is brought to light. The attention of French policymakers, particularly in the Fifth Republic, was focused on the relationship between the international economy and the domestic economy as they sought to guide French industrial development. The strategic orientation of the French state has been to encourage national champion firms capable of competing in the global marketplace. The ability of the state to integrate its economy into the global trading regime while retaining control over the rate and direction of industrial change is crucial to state power. In formulating state industrial goals, policymakers have derived their policy preferences from the nature of the international environment. The organization of the French state and state interaction with the international environment give French industrial strategy its characteristic features. Domestic institutions, traditions, and the ideology of state elites are found to be important factors shaping industrial strategy; the influence of the international economy is found to be decisive in shaping changes in the strategy over time. The structural consistencies underlying Frenchy industrial strategy are due to the organization of the state. Changes in the focus of industrial strategy under various governments are due to the influence of the international environment. The French state is found to be relatively autonomous in pursuing its industrial goals, while the theories of state autonomy are found to be useful in elucidating industrial strategy.