3 - Liberalization without Liberals

Summary

Chapter 3 analyzes the party-political legacies fueling the contestation of economic liberalization. Because of France’s dirigiste past, it is not just the left that is ambivalent toward economic liberalization, but also the right. The French right was in power during the heyday of the dirigiste system, so statist and nationalist principles became central to its economic outlook. In addition, leaders of the right emerged from the upheaval of May 1968 upheaval with a deep fear of strikes and protests. Finally, much like the left, the right never developed a legitimating discourse for economic liberalization, instead blaming it on external forces, notably European integration. Because of these legacies, the right has been an inconsistent backer of economic liberalization. Chapter 3 describes several characteristic behaviors of the right that foster the contestation of economic liberalization both in the streets and within governing circles: (1) a nationalist understanding of the economy that leads to extensive intervention to prevent foreign takeovers of French companies; (2) a fear of social upheaval that inclines conservative governments to retreat from reforms in the face of strikes and demonstrations, thereby encouraging further protests; (3) a fair-weather liberalism that gives way to statist revival in times of economic crisis.