French Social Democracy and Globalisation PO230 States and Markets Week 22 Ben Clift

1. French Social Democracy and Globalisation PO230 States and Markets Week 22 Ben Clift

2. Social Democracy & Globalisation: The French Parti Socialiste (PS) • Historical Context • Comparative context • Understanding of Globalisation • Jospin Government 1997-2002 • economic policy • role of the state • welfare restructuring • Significance for globalisation and social democracy debates

3. The Political Economy of Jospin’s Social Democracy • French Socialism in a Global Era: The Political Economy of the New Social Democracy in France Continuum, (2003). • ‘Social Democracy and Globalization: The Cases of France and the UK’ Government & Opposition Volume 37, Number 4 (2002), pp. 466-500. • ‘The Political Economy of the Jospin Government’ Modern and Contemporary France Volume 10, Number 3 (2002), pp. 325-337. • The Jospin wayThe Political Quarterly 72/2 (April 2001) pp 170-9.

4. Historical Context • 1983 U-turn – from Keynesian redistribution to neo-liberal austerity and ‘competitive disinflation’ (Lordon) • – wage de-indexation, higher unemployment • redistribution of wealth from labour to capital. 1991 Arche Congress, PS’s Bad Godesberg. Socialists accepted global capitalism as the ‘new horizon’ within which to pursue their ‘project’ • PS committed to the ‘social democratisation’ of capitalism – reforming it to enhance equality, social justice – rather than a ‘rupture’ which would replace it with ‘Socialism’. • revival was ideological – development of a programme distinct from the failed ‘neo-liberal’ governmental socialism of the competitive disinflation era (1983-93).

5. Comparative Context: Revival of Euroepan social democracy in (late) 1990s • French PS always a little out of step with the mainstream left in Europe – both ideologically (‘social democracy’ a term of abuse!) also, organisationally dimensions – no union links, not a genuine mass party (unlike UK, Ger, Sweden). • The 1990s saw the PS closer to wider European traditions than ever before. • Led some to speculate about convergence of the Left (perhaps towards a ‘Third Way’ stance) e.g. Sassoon ‘Fin de Siecle Socialism: The United, Modest Left’New Left Review No. 227 (1998)

6. Enduring qualitative differences between social democratic projects • Jospin is at pains to point out the distinctiveness of the PS – which he calls Modern Socialism • ‘If the Third Way involves finding a middle way between social democracy and neo-liberalism then this approach is not mine’ • PS sees itself as a distinctive model of social democracy to be emulated, distinct from Anglo-Saxon & Rhenish (CME) models of capitalism • greater emphasis, at least rhetorically, on egalitarianism, and the role of the dirigiste state.

7. Implications of globalisation for social democracy • Jospin’s programme predicated upon a distinctive understanding of the implications of globalisation for social democratic political strategy. • ‘Globalisation should not be seen as ineluctable ...often, it serves as a fallacious pretext for harmful, disastrous policies, ...[so] fatalism must give way to will.’ (PS 1996) • Reject the swallowing of neo­liberal orthodoxy on the assumption that 'there is no alternative', setting up 'political will' in opposition to 'laisser faire.' • Not taking as ‘given’ the nature of globalisation, not simple adaptation to global economy. Domestic policy activism to mediate/regulate global pressures, resist certain aspects.

8. Réalisme de Gauche(Left realism) • Réalisme de Gauche, (Left realism), globalisation does not preclude social democratic policy activism. • An explicit rejection of the pensee unique (neo-liberal dominant economic orthodoxy) • PS’s take on globalisation is more critical than Giddens, or Blair (see G&O article) • PS insist that activism at the national level is possible the 'rehabilitation of economic policy'- encouraging growth through expansion of demand, and fiscal redistribution in favour of lower earners to raise spending power.

9. Jospin Government 1997-2002 • Neo-Keynesian • economic policy should actively boost demand to encourage growth and jobs • Macro policy: Euro + ‘economic government’ (more political direction, flexible interpretation of SGP)

10. Role of the State • Dirigiste faith in the corrective powers of state intervention in the economy. • ‘The regulation of capitalism is essential and requires an active state.’ (Jospin 1999) • The ‘active state’, or volontarisme is another core feature of the French model, providing capitalism with the necessary direction by operating as a protector of the public sector • a new ‘alliance’ or ‘balance’ between state & market - privatisation andstate intervention

11. Employment Policy •  macro policy – mildly Keynesian • This is just part of a wider, multi-pronged strategy. • ‘employment centred social policies’ – tax credits and hiring incentives– comparable to New Labour policies • 35 hour week • Plan Aubry (public sector employment expansion) • Seeking European level macro policy activism (Public works – ‘Euro Keynesianism’); more growth & jobs oriented ‘policy mix’. • Employment Record: 12% in 1997, 9% in 2002.

12. Welfare Policies • The logic of the (limited) restructuring undertaken seeks to shift French droits acquis – or unconditional social rights • – away from a ‘Christian democratic’ notion of entitlement based upon contribution record, and towards a notion of social security as a right of each individual as a citizen. • But – welfare system entrenched, impervious to change. • The Jospin Government’s difficulty is marrying this social democratic logic to an essentially Christian democratic welfare system, founded around income maintenance rather than poverty alleviation or universalistic redistribution.

13. Limited Welfare Restructuring • Welfare policy plays a role in employment policy • fundamental aim is inclusion, redistribution to the poor both working and non-working • biggest achievement - universal health cover • health care formerly funded mostly by employee contributions, now more by general taxation • Postponed pension reform – too politically sensitive. • French welfare – still generous, but coverage remains patchy

14. Conclusions • Viable political economic strategy in context of liberalised deregulated financial markets – globalisation does not ‘rule out’ social democracy. • Broadly successful employment strategy • Some redistribution, limited welfare restructuring • Rebalanced state and the market – less old-style dirigisme • BUT – built on fragile electoral base – all came unstuck in April 2002, see my chapter ‘The ‘Earthquake’ and its Aftershocks’