THE ECONOMIC GROWTH IN FRANCE

The Economic Growth in France



The Economic Growth in France

Introduction

France has remained an international leader since the Thirty Years War. It was the first country dedicated to "liberty, equality, and fraternity" during the French Revolution, and today it remains a leader as an influential and powerful member of the European Union and the United Nations. The international plane since the end of the Cold War, however, has turned into a United States hegemony. In order to combat this Unitarianism, France has sought economic and political integration with Europe, forming the European Coal and Steel Community in 1951, which developed into the modern European Union. France is adjusting to its role as a member of the European Union, struggling to reconcile its strong identity with increasing globalization.

Discussion

France is in the transition from a socialist economy to one that relies more on the competitive market. This change can be seen in the French "willingness to put industrial management in private hands - and when necessary, foreign private hands" (Gordon 21). Due to this relatively rapid transition, there is an economic slowdown and the deficit for 2003 was 4 per cent of the Gross Domestic Product, which is above the European Union's 3 per cent debt limit. The French also had a major economic slump in the 90s, when it "was facing one of its most profound periods of economic depression since the 1930s" (Benoit 125). Nevertheless, currently the viable French economy is the world's fourth largest economic power in terms of its Gross Domestic Product due to its ability to adapt well to the domestic, regional, and international changes. France has a very modern economy similar to the United States in its scope. The new-age economy "built on microprocessors, telecommunications, and bioengineering that fuelled American growth in the 1990s" is beginning to take shape in France as well (Hall 186). The French economy has a large focus on high tech industry, in 2003, internet users were 36.2% of the population and that number is rapidly rising; similarly, they have a highly developed telephone system. This technological focus allows France to complete globally in the rising ever so important telecommunications system. As a remainder from the old socialist regime, large state owned enterprises: such as Air France, France Telecom, Renault and Thales, provide dominance in power, public transport and defense industries, leading to economic stability (Newell, 2003).

French agriculture, due to France's large amount of arable land (33.53 per cent) greatly aids the country economically (CIA). French agriculture ranks second in the world, in particular with agri-foodstuffs and cereals. The principal agricultural products in France are cereals, wine, milk, sugar beet, and oilseeds; all of which France ranks first or second in the European Union (French Embassy). These resources are vital to the French economy, and provide more money domestically. Similarly, France has a large supply of lumber due to the woods and forests that cover 27% of France's total area. The number of forests in France has increased 35 per ...