France since 1945 in Bac New Republic, Republic of always To go to the essentials: The economic and social developments

in France since 19 45 I. ECONOMIC DEVELOPMENTS A. The "Thirty Glorious Years" (1945-1973) 1. Rebuilding post-war • The results of the second world war the civilian and military casualties, the de ficit of births and emigration have led to a decline in the French population of about 1.5 million people. The economy was devastated. Agricultural production h ad fallen by one third compared to 1938, causing a shortage and wholesale supply problems. Industrial production was down by half, while the transport infrastru cture were damaged. The financial situation was very bad because of the increasi ng budget deficit and inflation (prices have quadrupled from 1938 to 1944) and t he black market has developed, while the franc depreciated. • Structural reforms and U.S. assistance from 1944 to 1946, the nationalizations w ere for key sectors of the economy: credit (Bank of France's leading banks and d eposit), energy (coal, gas and electricity) air transport (Air France), and the car with the nationalization of Renault. An indicative planning and forecasting of the economy has been inaugurated with the Monnet Plan (1947-1952) which focus ed on priority areas needed to rebuild and restart the economy, such as coal, st eel or electricity. Funded primarily by public funds and U.S. aid granted under the Marshall Plan, i t has stimulated the growth of production and ensured the country's economic rec onstruction 2. A period of expansion and change • Factors of Growth The State has continued to guide the economic development in t he context of indicative planning in the medium term (4 or 5 years). With succes sive plans of modernization and equipment, and plans for economic development an d social development. The progress of investments helped modernize equipment and improve productivity on farms and in factories. As to opportunities for nationa l productions, they have developed: - on the market, thanks to population growth and its increasing buying power - outside with the growth of exports and divers ification of sales to Europe as part of the customs union established within the European Economic Community (EEC) established by the 1957 Treaty of Rome. Aspec ts of growth from 1945 to 1973, France has experienced the strongest economic ex pansion in its history and one of the highest in the industrialized world. The F rench economist Jean Fourastié, gave him the name "Thirty Glorious Years". This growth was accompanied by profound changes in the production equipment and servi ces. In agriculture, farms have gradually expanded and modernized, yield and pro ductivity increased. The living conditions of farm life have improved, thanks to the guaranteed price obtained under the Common Agricultural Policy (CAP) adopte d in 1962 within the EEC. In industry, French companies have focused, internatio nalized and modernized to cope with increased competition due to liberalization of trade in Europe (abolition of tariffs in the EEC) and worldwide (GATT ). In t he distribution finally, the big box stores have proliferated. The limitations a

nd problems of growth in the economic field, numerous disadvantages remain: ener gy dependence and deficit vis-à-vis imported oil, maintain archaic structures (s mall production units of type craft still dominant) trade imbalance outside. The disparities have worsened between sectors, industries (decline of coal, steel, textiles), regions and social groups. In the financial field, the persistent inf lation caused repeated devaluation of the franc • • 3. Economic policies The situation has been marked by alternating periods of expansion during which m easures were adopted to fight inflation and downturns that have seen put in plac e policies to support the economy. Thus, during the Fourth Republic, the governm ent's deflationary measures Pinay (1952-1953) were followed by a recovery policy (19,531,957). Under the Fifth Republic,€stabilization policies were implemented in 1958-1959 by Antoine Pinay, and in 1963 by Valery Giscard d'Estaing, but wit hout jeopardizing the growth of the 60s, yet marked by the social crisis of 1968 . B. Slower growth and more uncertain since 1974 Given the global economic crisis of 1974 which revealed the weaknesses of the Fr ench economy, successive governments have tried to fight simultaneously against unemployment and inflation, and implement policies for adaptation to the constra ints European integration and globalization 1. The manifestations of the crisis / growth, prices and employment • Stagflation of 1974-1982: low growth and high prices The average annual growth h as declined by more than half compared to the 60 (2.5% against 5.7%) due to the decline of productive investment. Indeed, opportunities for self-financing compa nies have declined as production costs are high and the charges are cumbersome b ecause of rising oil prices and wage costs and social benefits. The average annu al increase in consumer prices soared (nearly 12% between 1974 and 1982, instead of 5% between 1967 and 1973). Inflation was linked to the rising price of impor ted energy (oil bill increased 10-fold between 1973 and 1982), and indexing the wage to prices. Disinflation and the fragile recovery after 1983 price inflation has fallen below 5% annual average since 1983, when it was below that of German y. The French economy has benefited from lower oil prices linked to the oil shoc ks and cons of government policy to fight against inflation. Growth rates have r ecovered between 1987 and 1989 but, after • Gulf War, the French economy has plunged into recession as it has struggled to e merge. • The inexorable rise in unemployment The jobseekers were 2,000,000 in 1982 and ov er three million in the late 1990s (more than one in ten). Rising unemployment i s linked to economic growth slower, less regular, but also to the modernization of factories, businesses reduce their cost by automating their manufacturing pro cesses and by outsourcing activities with a high cost of labor. b / The financial problems •

The worsening deficit The deficit of public accounts deteriorated progressively with increasing expenditure on unemployment benefits, health and pension payment s, in an aging population where people are living longer longer. The budget defi cit has forced the government to borrow and incur debt while the "hole" of Socia l Security widened. The external trade deficit exceeded 500 billion francs durin g the period 1974 -1990, reflecting higher oil from 1974 to 1980, increasing the dollar from 1981 to 1986, and the poor performance of French industry to mid-90 s. The depreciation of the currency difficulties in the economy have helped weak en the franc, which depreciated by a third against the mark from 1979 to 1990 wi thout, however, France has ceased to be a deficit in its trade with Germany. • 2. The term policy has / Difficult choices, a vacillating policy and fluctuating 1974-1982 • Right-wing governments faced with two oil shocks of 1974-1981 The Chirac governm ent's reluctance to come forward by a succession of two conflicting policies in the Plan of cooling (that is to say the fight against inflation) of June 1974 wa s abandoned in September 1975 in favor of a plan to "support" to revive the econ omy and mounting unemployment. The Barre government has given priority to the fi ght against inflation, by creating in 1976 a plan to fight against inflation and unemployment which was holding back wage increases and companies exempted from social security so they can hire. The results were disappointing because inflati on has not been curbed and has even been revived by the second oil shock in 1979 , while the number of unemployed doubled from 1976 to 1980. • The left and Recovery (1981-1982) After the election of François Mitterrand, the fight against unemployment has again become a priority with the creation of pub lic employment (increased number of staff) and the resumption of activity by the consumer People with an increase in salaries and benefits.€This revival was bas ed on the adoption of important social measures concerning the reduction of work ing time of employees (39-hour week, fifth week of paid leave), and advancing th e retirement age of 65-60 years . b. The austerity policies since 1982 • The shift measurements taken from May 1981 to early 1982, have put the French ec onomy in a very worrying situation. The fiscal deficit worsened, payroll compani es have become more cumbersome, while the trade deficit was widening with the in crease in imports (domestic production unable to meet rising demand) made more c ostly by soaring dollar. Thus, the failure of the recovery has led to resume a p olicy of austerity, even austerity. The New Choices From spring 1982, the leftis t government has prioritized the fight against inflation by ending the indexatio n of wages to prices, and the defense of the franc. At the same time, the compan y has been restored at the expense of household consumption to stimulate investm ent. These liberal policies have been developed during the cohabitation of two f rom 1986 to 1988 under Jacques Chirac, and from 1993 to 1995 under Edouard Balla dur, with the abolition of exchange controls and the administrative authorizatio n for dismissal, with privatization, then again from 1995 to 1997, under the Jup pe government plan to reform social security and pension postponed to 65 years i n the private sector, the proliferation of business support. Returning to power after the reelection of Mitterrand in 1988 and again in 1997 following the disso lution caused by President Chirac, the left has not totally broken with the aust erity policy which aims to bring the economy French to the constraints of global ization and European integration (applying the Maastricht agreements and transit

ion to the single currency, the euro). From 1997 to 2002, faced with worsening s ocial divisions and tensions that arose within the broad left of the Jospin gove rnment has attempted to dampen somewhat the social consequences of this policy o f restraint and s' tackle the problem of unemployment with the creation of emplo yment-training contracts and jobs for youth, establishment of minimum income (RM I), the Act 35 hours, the Couverture Maladie Universelle (CMU), and the law of s ocial modernization. Since spring 2002, the Raffarin government, which has a bro ad right-wing majority in the House of Deputies and the Senate, has launched a • resolutely liberal policy which aims to reduce government spending and returning to the soundness of the social. 3. The structural policies / Energy Policy To cope with increasing oil prices and reduce the country's energy deficit, the decision has been taken from 1973-1974, to implement a policy of reducing consum ption and replacement of oil by the nuclear energy. These choices have not been challenged with the arrival of the Left to power in 1981, the rate of increase i n energy demand has declined slightly and the power plants now supply 80% of the electricity produced in France, against only 8% in 1973. b. Sectoral policies • In agriculture Agriculture expanded and modernized in the European Common Agricu ltural Policy (CAP), focusing on guaranteed prices, led to a chronic oversupply. Since 1984, the face of heightened international competition and pressure from the United States, the European Economic Community (EEC), now the European Union (EU), has been questioning the policy of price support (subsidies). In 1998, th e Commission in Brussels has begun to reduce significantly the guaranteed price of most agricultural products. Now, many small and medium-sized farms are more p rofitable and are destined to disappear. The peasant world is currently experien cing a deep malaise worsened by the mass slaughter of cattle caused by the mad c ow disease and FMD outbreak in the early 2000s. In the industry crisis has highl ighted the structural weaknesses of the French industry: insufficient concentrat ion of businesses, lack of innovation and trade deficit from 1987 to 1991. To co pe with international competition and limit the spread of unemployment, the stat e intervened in contradictory ways that assist companies threatened while the mo dernization of the production a priority.€On the structure of businesses, differ ent options have been identified: the left has nationalized the major industry g roups in 1981-1982, while the right has chosen to privatize 19,861,988. Reelecte d in 1988, Francois Mitterrand has adopted the principle of "neither-nor" (neith er nationalization nor privatization). From 1993, under the second cohabitation, Edouard Balladur launched a • new privatization program pursued by Alain Juppe after the election of Jacques C hirac in 1995. From 1997 to 2002, the Jospin government has launched its turn in the privatization. The Raffarin government which succeeded it intends to contin ue on this path. In the late 1990s, the French economy has resumed growth: infla tion remained at a very low level, high trade surpluses, record profits for larg e companies boost investment and consumption; newfound confidence, coming to the euro. But the social gap has continued to grow and the unemployment rate remain s high .. II. DEMOGRAPHIC CHANGES Since 1945, the population rose from 40 to 60 million inhabitants.

A. The natural 1. From the baby-boom in baby-boom After the baby boom of large-scale and long-term post-Second World War, the birt h rate has declined from the mid 60s. Fertility has declined and is no longer th e renewal of generations. The decline that characterizes all industrial countrie s, due to various causes, the most decisive was the change of lifestyles, the gr owth of female employment and the birth control (contraception and liberalizatio n of abortion ). 2. The decline in mortality The general and infant mortality has declined in relation to the improvement of living conditions, advances in medicine and the institution of social security i n 1945. Life expectancy has increased but remains differential: the average life span is shorter for workers than for managers, and women live on average seven to eight years longer than men. 3. The aging population The falling birth rate reduces the share of youth in the total population. The d ecline in mortality leads to an increase in the number of people Seniors (grandpa boom) and the problem of financing health care costs and pensio ns. B. External inputs 1. The role of immigration Immigration has grown from 1945 to 1973 to meet the manpower needs of reconstruc tion and growth. Since 1974, the economic crisis has slowed the movement, immigr ation has been officially suspended, and political repression of legally residen t aliens (with return) or irregular (fight against illegal immigrants) have been applied. 2. Foreign population In Europe, immigration has become especially Asian and African, North Africans c onstitute the largest contingent. Although the number of foreigners living in Fr ance have remained stable since the mid-70s, immigration has become one of the m ajor problems of French society. Many people are pro-integration or assimilation of foreigners into French society, while others advocate their exclusion in the name of saving the "national identity" II. SOCIAL CHANGE A. A reflection of changing economic Productivity gains have profoundly changed the structure of the workforce. The m echanization and automation of agriculture have led to a collapse in the number of farmers who now represent less than 7% of assets. In industry, the advent of robotics, and relocation associated with globalization have resulted in the loss of many jobs. However, there has been a veritable explosion of numbers in the t ertiary sector which now employs more than half of the workforce. The tertiary s ector of the economy has been accompanied by growing middle class (managers, emp loyees) and women's work. B. New conditions of life 1. Urbanization The rural exodus has depopulated the French countryside where there were still h alf the French in 1945 in favor of cities increasingly important today bring tog ether the three-quarters of the population. The "peri-urbanization" has extended the urban space in the countryside close to towns with development of "dormitor

y" and residential suburbs. 2. Consumerism It is characterized by improved living standards and the transformation of house hold budgets.€The share of food expenditure has declined in favor of spending on transport (development of the automobile) and habitat with the progress of comf ort, the proliferation of household appliances and homes. The extension of leisu re time has allowed the development of tourism and the dissemination of cultural practices (cultural centers) and sports (winter sports, travel). 3. Progress and problems Since 1945, wages have increased working hours has decreased, the paid leave fro m 2 to 5 weeks, workers' rights were affirmed, but the prosperity has not been e qually shared. The consumer society has created new evils which have been denoun ced by the protest movement of May-June 1968. The desire for a better quality of life has led to growth of environmental movements while sitting unions dwindled . Faced with persistent unemployment and the rise of exclusion, leftist governme nts have, over the years 80-90, multiplied schemes to mitigate its effects: mini mum income (RMI), job- Youth employment-solidarity contracts (CES), universal he alth coverage (CMU). Since 2002, the Raffarin government, facing an economic dow nturn, in a context of global competition excerbée, tries to accept the French f ar-reaching reforms that involve a disengagement of the State and a challenge fo r some number of social benefits: reducing the number of staff and lengthening t he duration of their retirement contributions from 37.5 to 42 years, non-renewal of youth employment, reduction of employment-solidarity contracts "delisting" o f many drugs, decentralization of the RMI and creation of minimum employment inc ome (RMA). Unemployment remains at a high level, while at the same time develop the flexibility, job insecurity and working involuntary part that generate new f orms of poverty, the "working poor". France since 1945 in Bac new Republic, Repu blic of always