France and globalization

The French have traditionally been skeptical about globalization, which many among them believe is tantamount to Americanization.  A new government-commissioned report by former foreign minister Hubert Védrine tries to articulate a characteristically-French vision of globalization. I haven't been able to locate the report itself online (can someone help?), but here is a quick summary of it:

Despite the growth in global threats and challenges, Védrine writes that the nation-state remains important in foreign and economic affairs. His report lists several reasons why the French have a negative view of globalization, including "a persistent moral repugnance against the market economy."

"What is specific to France is the lack of confidence people have in their ability to cope with globalization," he said in the interview.

The only way to give people back that confidence is to "protect" them, Védrine writes, proposing "much more offensive regulation" and social policies to cushion the impact of globalization on every-day lives. He also says France has a right to protect strategic sectors of industry.

"It's no good to keep talking about win-win globalization because public opinion simply does not believe it," Védrine said in the interview. "We need a policy mix that combines economic reform, solidarity, more regulation and protection. It's the only way to give people back confidence."

And a little bit more here:

Tougher regulation of hedge funds, protection of strategic industries and the creation of European industrial champ­ions are essential if the French are to be reconciled with globalisation, according to a report commissioned by President Nicolas Sarkozy and published on Wednesday.

In his study, Hubert Védrine, a former Socialist foreign minister, urged his compatriots to ditch the "persistent distrust" and "constant pessimism" with which they regard France's place in a globalised world.

France had many strengths that would allow it to flourish in the global economy, but there would also be losers who had to be helped. So if there was to be national consensus, there would have to be much greater protection, regulation and redistribution by the French government and the European Union, he said. Protection was not necessarily the same thing as protectionism.

Mr Védrine complained that pro-globalisation governments accepted the need for financial regulation but had "not been demanding enough" in recent years, as this summer's financial crisis had shown.

He urged Mr Sar­k­ozy to join German efforts to impose higher standards of transparency on hedge funds and highlighted the opaque nature of sovereign funds, such as those controlled by certain Gulf states.

Germany has been pushing for a code of conduct among the Group of Eight industrialised countries, but its efforts have been rebuffed by the US and UK.

Mr Védrine said joining forces with Germany on this and other ways of regulating globalisation would help reinvigorate the Franco-German relationship and give fresh impetus to the EU.

He also called on the EU to be far more robust in applying the principle of equal access in trade deals and to stand ready to protect its industry from hostile takeovers, particularly where there was not equal access. The EU should consider more widespread use of golden shares to block hostile takeovers or otherwise simply chose to designate certain industries as of "strategic" importance.

Some of his proposals were more radical and sketchy. One way of redistributing the gains of globalisation would be somehow to tax industries that benefited from exchange-rate stability under the euro in order to help those that had lost out, he suggested.

If Europe was not more hard-headed about protecting itself, there was a risk that its well-meaning liberal leaders would eventually be seen as the "idiots of the global village", he added.

It will be interesting to see the details, if there are any, because this summary itself makes little sense to me.

Comments

[Thierry]

Hi, you can find the report (in French), here:
http://medias.lemonde.fr/mmpub/edt/doc/20070905/951341_rapport_d-hubert_vedrine.pdf

[Chelnikov]

The report is also in html and pdf format on the website of the Elysée Palace (home of the French President):

http://www.elysee.fr/elysee/elysee.fr/francais/salle_de_presse/2007/septembre/rapport_sur_la_france_et_la_mondialisation_par_m_huberrt_vedrine.79348.html

[jmdesp]

Hum, I'm not sure that there's anything that will help to make more sense of it :-)

[random african]

It's a political report.
As far as I know, most of Vedrine's career has been in foreign affairs. A lot of the report is about France having a more active role in the diplomatic scene.

As far as the economics, I guess it's typical of french politics too. Economic Patriotism (globalization is good when Suez gets big contracts) mixed with fears about the wages and the competition for less productive sectors (rejection of the EU constitution because of the Bolkenstein clause, uproar over Indians buying steel plants).

Don't expect it to change anything on the economic side since 1. it's not saying anything new 2. the very existence of the report is political (remember Vedrine is Socialist Party member ?)

[hari]

Dani-

The debate on Globalization and its impact on EU Single Market - based on principles of social market economics - gives rise to serious political
issues which not only EU Commission but also EU Parliament are wrestling with right now.

Ango-American concept of globalization - laissez-faire capitalism - is NOT acceptable to Franco-German ideological predisposition. Majority of EU-12 - linked through adoption of Euro - more or less subscribe to the Franco-German leadership.

But Vedrine's a Socialist! Sarkosy is using him to push his protectionist policies on EU Commission -and by implication on Germany:- which doesn't consider globalization as a danger to its export economy (as long as there are adequate safeguards).

I suppose, in due course, this debate will be focused in EU Parliament. Majority of its members are right-of-centre right now. However, the Socialist Bloc is very strong and led by Spain, in the Chair.

My personal view is that
impact of globalization and its economic consequences, particularly in global trade, has distorted the previous GATT arrangements, and created a specific problem for countries which adhere strongly to social market economics.

And don't forget, current head of WTO is none other than Vedrine's socialist colleague, and former head of EU Trade Commission.

[Justin Rietz]

Unless I am completely missing something, this is one of the most glaring pieces of doublespeak I have read in a long while.

He supports globalization (which I define as greater international economic integration), but he wants to protect France via "protection of strategic industries and the creation of European industrial champ­ions" and "regulating globalization."

I'm left confused too...

[Cristian Herling]

"It will be interesting to see the details, if there are any, because this summary itself makes little sense to me."
Ha, ha, ha.
It's not supposed to make any sense, it's supposed to win votes. Let's see how it fares on that front...

[hari]

Dani-

I suppose reason for not understanding Vedrine's report [to Sarkosy] is simply that US media doesn't really try to explain what's going on in EU - as far as globalization debate is concerned.

I've now had a chance to read his original (Fr) text.

In fact, he's saying France can indeed profit from globalization. But he wants Sarkosy to collaborate with Germany and find the right economic strategy to benefit from it.

Of course, he wants to find ways and means to protect French brands from mergers/acquisition by foreigners. Yet he's willing to compete on a level playing field - which he tries to define in national terms.

While Vedrine is reporting to French President, WTO ( under Lamy) is organizing a Public Forum on Doha and its implications (early Oct) which is interesting in terms of its agenda.

You can locate it on WTO website.

[derrida derider]

Cristian is right - this is populist politcs rather than any sort of economics.

But at least it might shut some of the libertarian bloggers up, who were hailing Sarkozy as "the new Thatcher".

[piglet]

"this is populist politcs rather than any sort of economics"

When American politicians intone their "Free Trade" mantra, is that politics or economics? Or is it religion?

[JLS]

"Anglo-American concept of globalization - laissez-faire capitalism - is NOT acceptable to Franco-German ideological predisposition"

Exactly : Globalization exists since the end of Middle Age , we are not against globalization but against the Americain way of
globalization :deregulation, finance more important than production, rise of unequality about wages ...
Anyway I'am optimistic I think we are near (very near 1/2 years) of the end of Neoliberal ideology.

[Jean Bien]

How explaining globalization to French people ? It's the aim of this video :

http://www.youtube.com/watch?v=lo8HtPKFDhw

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