In June of 1958, the fifth Republic of France was established.  A world leader in technology, agriculture, politics and finance, France is a key global figure.  To understand the evolution of this great country, one must understand the facts and factors that play into them.

GDP is $1.4 trillion

80% electricity is nuclear

1/3 agricultural land in EU

Population is 60 million

 

HISTORY

The Third Republic was established in 1870, after the Franco-Prussian War.

WWI (1914-1918)

French Revolution (1789-1799) changed the government from and absolute monarchy to a republic.  Thus the First Republic was born long before other countries would follow suit.  The cause of the revolt was the increasing number and power of the bourgeoisie (middle class).

In 1940, France was defeated in World War II by Germany.  The Vichy government was established to try to bring order to a country in chaos because of German occupation.  This lasted for four years, until Allied forces liberated France.  A provisional government was established by General Charles de Gaulle, an extreme conservative.  Soon after, the Fourth Republic was created.  The coalitions controlling the new government disagreed on methods of dealing with Indochina and Algeria.  Under the stress of disagreement, the Fourth Republic fell in 1958.  To prevent civil war, Parliament chose General de Gaulle to head the government.  He became Prime Minister that year which led to the Fifth Republic.  He was later elected President.

 

GOVERNMENT

The judicial system can be broken down to the Constitutional Council and the Council of State.  The Constitutional Council determines if legislation follows the constitution.  The Council of State hears complaints from citizens about administration.

 

FOREIGN RELATIONS

In 1991, the Madrid peace conference revitalized the Middle East Peace Process which France supports.  France supports the establishment of Palestine, and the withdrawal of Israel from occupied territories.  In support of Palestinian Authority, France has promoted regional economic dialogue and involvement of Arab parties and Israel in a multilateral peace talks.

At one time, French colonies existed in Africa.  Extensive aid programs, commercial activities and military support play a significant role there.  This promotes political, military and social stability.

In Asia, France has many political and commercial relations.  The Asia-Europe Meeting (ASEM) was a free-trade agreemet designed to compete with the Asia-Pacific Economic Cooperation (APEC) led by Australia.  Agreements with China look to pose a competitive challenge to U.S. business in the technology and luxury markets.

 

SECURITY

The major security goals of France are national independence, nuclear deterrence, and military sufficiency.  The North Atlantic Treaty Organization (NATO) is a prime example of these goals.  Further peacekeeping efforts have been focused in Africa, the Middle East and the Balkans.  France’s military has been restructured to be smaller, rapidly deployable, and better suited for operations outside of France.

In an effort to restrict the transfer of mass destruction technologies, France participates in major supplier regimes including the Nuclear Suppliers Group, the Australia Group (chem/bio weapons), and the Missile Technology Control Regime.

 

 

 

FRANCE’S ECONOMY

 

     The current government of France is in a period of cohabitation. Cohabitation means that the president is from one party and the Prime Minister is from another. With two representatives from different parties may cause discrepancies in ideas and goals. Chirac and Jospin have worked together to achieve their goals, especially their most important, the economy. The past trend of the French economy shows some instability, but current activity in the economy proves that there will be some improvement.

     There has been a demand for more products, but there has been a limited amount of production due to the high levels of unemployment. France is one of the three EU nations with the highest unemployment rates.  Unemployment rates in France have reached an average of 12.8% in 1998, but recently the rates have dropped to 9.8%. The government has adopted new policies to create new jobs for those people unemployed. One policy passed by legislation in 1998 allowed the workweek to be shortened from 39 hours to 35 hours. This policy has been in affect since January of 2000. This policy is difficult to put into the business because of differences in management. The issue of unemployment has also had an affected on the consensus of the population’s ideologies concerning foreign immigration. The general feeling of the working class of France feel that outsiders or non-French people pose as a potential threat because they could take their jobs. The feeling is that jobs should only be granted to those who are French born because they are more deserving. The population of unemployed French people argues that there should be no migration of aliens because they are loosing money because of them.

     After World War 11, France was devastated financially. The country was mangled from the arterial warfare and bombings. Many government and private businesses were destroyed beyond repair. The country was burdened with the costs of going to war and its repair in the end. The private business owners had no income during the war, so after the war their buildings were destroyed and they had no resources to ever rebuild it ever. In order to rebuild the economy for the French State and private business owners, the state must first rebuild all roads, trains, ports, bridges, electricity, etc. Without these essential commodities, the economy could never restore itself. The government began establishing which city is priority to rebuild in order to fulfill their goals. Big cities such as Paris, Lyons, Marseilles were chosen to provide jobs and make the most money for the government and its people.

     Because France shifted from an agricultural to an industrial society after World War 11 many plans were introduced to cultivate these changes. Financier Jean Monnet, was the main actor in creating the influential state in the economy. Monnet emphasized the importance of nationalization of certain industries, such as transportation: railroad, airplanes; major banks, and coal mines--later to be nuclear power. In result the GNP increased by 50% in 1949-1954. Since then, particularly in the late eighties, the state has become increasingly privatized but the government still influences the majority of industry because of its policies and regulation

     The French government has controlled a large portion of its economy.  France is the highest spender of the GDP (54.2% in 1998) in the G-7. The government of France owns shares in major corporations: such as the Bank of France, energy production through nuclear development, transportation (Air France), and telecommunications. The government plays a key force in the Bank of France because they aid in forming certain policies for the bank and the bank helps form economic policies for the French State. For example, The Bank of France never grants loans to individual people; rather they focus their economic investments to the international market.

    

     France is the fourth largest industrialized western nation with the gross domestic product reaching $1.5 trillion (US dollars). France is also ranked fourth in the world for importing and exporting goods. France is the third largest trading partner in Europe behind United Kingdom and Germany. France is in the top two exporters (along with USA) in defense products, agricultural products, and other services. Because the imports and exports make up 25% of the GDP, France is looking to expand their market internationally, especially to Latin America and Asia. Foreign investment (inward and outward) plays a major role in the growth of French economy. Foreign investment improves the unemployment rate and creates growth. However, the French does not allow foreign investments in areas such as telecommunications, agriculture, defense, and aviation. (1999 Country Report and Economic Policy and Trade Practices-France).

     France is viewed as a Protectionist state, especially by imports of foreign goods. France has huge regulations on what kinds of products are allowed into the country. France wants to keep its economic strength by allowing the availability of French only goods, diminishing the influence of foreign competition. French policies enforce high tariffs on foreign goods so the French consumer will be discouraged into buying the foreign product and opt for the cheaper French goods. However, being a member of the EU, France has liberalized their sanctions on foreign goods. They import and export freely with nations of the EU. But they are still discriminate against non-EU members.

FACTS AND FIGURES:

     The Nominal GDP is 1.4 trillion. The Real GDP Growth is 2.7. The average annual growth rate is 3.2%. The GDP by sector: Agriculture 43; Manufactoring: 277; Services: 647; Government and Non-Profit Services: 258. The GDP per capita is 24,770. The unemployment rate is at an estimated 12%. The consumer rate inflation (on average) is at 0.6. Total exports FOB 4/ is 293 while the total imports are 282. In comparison to total imports and exports to the USA the export rate is at 21 while the import is at 24. This proves that France is a protectionist country and they are selective with which country they invest their money, especially non-EU members. (All figures are in US dollars; the current exchange rate is at 6.1 Francs to the $US dollar. As one of the strongest nations in Europe, France has always strived to maintain friendly relations with many countries and it continues to help build a more stable and healthy European continent.

 

FRANCE’S RELATIONS

 

Franco-German Tandem

     First and foremost, France places its closest ties with Germany. These two countries together have played the leading roles in each new phase of European integration. In 1963 the Elysee Treaty was signed between both countries in an effort to provide two Franco-German summits per year, quarterly round-tables between foreign affairs ministers and regular meetings on defense, education, and youth affairs. This cooperation gave rise to the Franco-German Youth Office (OFAJ), which enables thousands of young people from the two countries to meet one another and study or work together.

     The degree of convergence between these two countries is unique in the world. France and Germany work together in several different aspects. The monetary committee brings together the President of the Bundesbank, Governor of the Bank of France, and the two finance ministers. The Defense Commission created a successful Franco-German Brigade, which later developed into the Eurocorps (a completely European force) which also includes Belgium, Luxembourg and Spain. The countries even have a joint television channel, which can also be enjoyed by Belgians, Swiss, and Austrians.

United Nations

     France is very actively involved with the UN. Since the beginning in 1945, France has been a permanent member of the security council, which is the highest body with the UN, along with the US, Great Britain, Russia and China. France made efforts to enlarge the Security Council so as to include Germany and Japan and representatives from developing countries. French is one of the six official languages of the UN and one of the two working languages used. UNESCO (The United Nations Educational, Scientific and Cultural Organization) is housed in Paris.

     Not only did France contribute to the growth of the UN, but it also helps maintain the UN budget by being the fourth largest contributor. In two years it’s share of World Wealth nearly doubled from 3.5% in 1996 to 6.5% in 1998. In 1998 France was the ninth largest contributor of troops and equipment for peacekeeping operations and it was the largest among countries with a permanent seat on the Security Council.

     Because of this prominent role there are a lot of important responsibilities placed on France. It takes an active part in the revitalization of the UN, which has had new tasks since the ending of the Cold War: ending regional conflicts and ensuring respect for international law.

     France has taken part in many operations around the world. A French contingent of 12,000 men took part in what led to the liberation of Kuwait. It has played an important role in the successful quest for political solution to the disagreements between Iraq and the Security Council. Past ties with the Middle East, Africa and Asia enables France to take an active part in finding fair solutions.

     In the Middle East, France have played many helpful roles in solving conflicts, such as supporting the Israelis and Palestinians on having their own boundaries within the country.  France has also long been working with African counties through their crises. It supported the efforts to abolish apartheid in South Africa and draw up a democratic constitution. It participated in UN operations to restore peace and ensure the availability of food in Somalia. In 1994, French troops were sent to Rwanda to aid the threatened citizens and establish a “safe zone.” France also teamed up with the US and the UK in an initiative to strengthen the African armed forces to participate in peacekeeping operations.

G7 / G8

     In November of 1975 the French President, Valery Giscard d’Estaing, set up an Economic Summit in Rambouillet which gave birth to what is now known as the Group of Eight, or G8. Giscard and Chancellor Schmidt of Germany wanted to establish an informal forum to discuss world economic issues between the countries of France, Germany, Great Britain, Japan, United States, Canada, Italy and the President of the European Commission. This group was known as the G7, Group of Seven, and they used the informal consultation sessions to discuss agendas concerning economic issues.

     Over time the meetings became more formal and publicized. In