Social Politics in France

Two traditions that are conflicting but have more in common than appears. These have made up the social and economic policy of the French state since the eighteenth century. The older expresses the need for centralization and control of economic and social life essential in the creation and consolidation of the modern state. The other emphasizes the objective aspect of economic laws and demands freedom for the individual. Evidnently it’s the revolution of 1789 that balances from the one to the other.
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Be a part of European unions and you will start acting in favor of liberalization. European Union’s has equipped itself rules and regulations so as to enable itself to opening of markets. Moreover, it has succeeded in expanding markets so as to promote allocation of resources. Its hard work has led to the conversion of Europe into a competitive market which is now recognized globally.
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The industries with big tags have agreed to set the wages of the employees according to the lines drawn by the SMIC in Paris. With the hand shake of the union leaders with the officials changes have occurred in the worker regulations and workers are more and more organized. There were many factors which contributed healthily to this change such as the immense contribution of the public officials in the regulation of the society, concentration and acceptance of total power to the state.
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Through all the changes and liberalization the French way of governing is not as unique as it once was. Bargaining agreements now tolerate hostile takeovers and France has become a liberal market economy . During the 1980s France was tempted to emulate the German economic model but since than has come to resemble more of the British way of doing business. France is not alone in these changes as most of Europe has embraced the same standards as the world economy slows down and this system is best positioned to deal with these factors.
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Even though France has come along way since the 1960s not all is well among its citizens. In 2001, only some thirty percent expressed trust in the government and just twelve percent said they trusted political parties. Only fifty percent said they were satisfied with the state of democracy in France. Since 1980s it has been very difficult for any political party to stay in power very long and thus there is a high turn over of political leaders.Its no wonder there is discontent since real disposable income for the average worker has increased by only 1.2 percent a year since 1980.
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French governments have more influence over the allocation of resources to market mechanisms, but the retreat of the French state is far from complete. France still plays a large role in the distribution of employment, by means of active labor acts and policies on which over three million households depend and thrive on. France also retains power over the distribution of social assistance funds with more than ten percent of the population receiving the minimum income, and millions more are pensioners. There are also more than 1200 kinds of public aid available to start-up firms in France.
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As commodity price increases plunged France into recession in the mid 1070s it began an era of slow growth. French policy-makers responded as if it were a temporary problem and increased industrial subsidies to firms and social benefits to individuals to help them weather the storm. The economy did not grow as quickly as in past decades and the result was an increase in the share of gross domestic product used for public expenditure that rose from 39 percent in 1970s to over 5 percent in mid 1980s. This started a whole new set of problems for the nation as it now had expensive social programs the nation could not afford.
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Since the power now sat firmly inside Paris the big industrial corporations they saw it fit to keep wages just in line with the minimum wages set by the SMIC. As workers become organized and unions formed the inevitable changes in worker regulations began to shift when public officials and union leaders started to put their heads together. The result was a highly regulated economy in which public officials played an active role, a centralized polity that concentrated power in Paris, and a society accustomed to looking to the state to resolve its problems.
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Joining the EU is as big of an act as anything that acted towards liberalization. This locked France into lines of policy from which previous governments might have shied away from they had not been forced by EU agreements and institutions. The EU is equipped with regulations to open markets but few resources to intervene in limiting their effects. The EU has committed to expanding the role of markets in the allocation of these resources. The EU is continually maneuvering Europe into a competitive market model, yet one that has room for with multiple avenues of production and various types of welfare states.
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