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The French economy
JOURNALOFCOMPARATIVE ECONOMICS~, 91-92(1984)
J.
R. HOUGH, The French Economy. New York: Holmes and Meier, 1982. 226 pp., index; cloth $29.50.
Britons of the postwar generation, of which this reviewer is one, learned from their parents that one of the more enduring features of the modem world was the sorry state of the French economy. All the French had to offer was chefs and wine. This belief, fostered by a century of economic stagnation and highlighted by the military collapseof 1940was, if anything, strengthened by the chaos of postwar French politics and the concurrent tendency towards inflation. Thus, as J. R. Hough points out on the opening page of his book, the news of the outstanding postwar performance of the French economy comes as a surprise, even now, to many Britons. The same set of facts that causes that surprise should also trigger the scientific curiosity of academic economists. What could possibly be the cause of the dramatic turnabout from a century of economic stagnation to three decadesof prosperity? Why did the French economy, one of the most energypoor in Europe, perform better than most other European nations in the years after the 1973 oil-price rise?It is naturally with such questions in mind that one turns to a book on the French economy, and in its opening pages these questions are brought to the fore. Hough does not chooseto structure his book around an analysis of French economic performance. Rather, his aim is to present to the reader the factual material that would underpin such an analysis.Thus, he givesa straightforward cross-sectional view of the French economy in which the basic facts are presented subject by subject. The chapter headings are good indicators of the subjects he discusses:Industry, Agriculture, Labor, Economic Planning, Macroeconomic Policy, Regional Economic Policy, and France in the EEC and the World. Becausethe material is factual rather than analytical, there would be little benefit derived from making detailed comments on particular sections of the book in this review. Rather, the comments will be of a more general nature. The scope of coverage in the book is adequate. One could quibble with certain emphases:too much on regional policy, too little on social-welfare programs and income distribution. The depth of treatment is at a level appropriate for a student who is beginning to study the French economy. However, the book falls awkwardly between two levels, at least for the American market. It is too detailed for an undergraduatestudent taking a generalcourse 91
0147-5967/84 $3.00 Copyright 0 1984 by Academic Press. Inc. All rights of reproduction in any form reserved.
92
BOOK REVIEWS
in comparative economic systems. On the other hand, this reviewer would not recommend the book for a graduate student becauseof its nonanalytical approach and the almost total absence of the use of economic theory in explaining the behavior of the economy. The major problem with the book is its tendency to become solely a list of facts.Of course,an understandingof the basicfacts is necessaryfor analyzing the determinants of a nation’s economic performance. But the meaning and significanceof thesefacts will be lost on the book’s relevant audience,students, unless the presentation helps that audience interpret those facts. Such interpretation can be provided in at least two ways: use of economic analysis and presentation of the facts in comparative perspective. With the use of economic analysis, even at a rudimentary level, the author could make the jungle of facts more penetrable to the reader. By presenting his own view of causeand effect within the economy, the author could build a framework for understanding the way in which the economy functions. Without such a framework, the presentation of detailed factual material can confuse rather than clarify. For example, we are told that France has weak trade unions and had price controls. Yet there is no analysisof the inflationary processto explain why France has had an historic tendency towards inflation. Alternatively, the author could clarify the significance of the facts by presenting them in comparative perspective.By making comparisons with other economies, an author can make clear the way in which the country being studied is different from others. In this way, the reader can begin to build a picture of the possiblecausesof comparative economic performance.However, such comparisonsare largely missing from this book. For example, the figures on the size and significance of various French industries do little to enlighten us becausethere is no information telling us in what way French industrial structure is different from that of other countries. Thus, this book is ultimately unsatisfactory because it eschewsmethods that would help us begin to understand the factors underlying the basic fact with which the book begins: the outstanding performance of the French economy. PETER MURRELL University of Maryland, College Park, Maryland
J.
R. HOUGH, The French Economy. New York: Holmes and Meier, 1982. 226 pp., index; cloth $29.50.
Britons of the postwar generation, of which this reviewer is one, learned from their parents that one of the more enduring features of the modem world was the sorry state of the French economy. All the French had to offer was chefs and wine. This belief, fostered by a century of economic stagnation and highlighted by the military collapseof 1940was, if anything, strengthened by the chaos of postwar French politics and the concurrent tendency towards inflation. Thus, as J. R. Hough points out on the opening page of his book, the news of the outstanding postwar performance of the French economy comes as a surprise, even now, to many Britons. The same set of facts that causes that surprise should also trigger the scientific curiosity of academic economists. What could possibly be the cause of the dramatic turnabout from a century of economic stagnation to three decadesof prosperity? Why did the French economy, one of the most energypoor in Europe, perform better than most other European nations in the years after the 1973 oil-price rise?It is naturally with such questions in mind that one turns to a book on the French economy, and in its opening pages these questions are brought to the fore. Hough does not chooseto structure his book around an analysis of French economic performance. Rather, his aim is to present to the reader the factual material that would underpin such an analysis.Thus, he givesa straightforward cross-sectional view of the French economy in which the basic facts are presented subject by subject. The chapter headings are good indicators of the subjects he discusses:Industry, Agriculture, Labor, Economic Planning, Macroeconomic Policy, Regional Economic Policy, and France in the EEC and the World. Becausethe material is factual rather than analytical, there would be little benefit derived from making detailed comments on particular sections of the book in this review. Rather, the comments will be of a more general nature. The scope of coverage in the book is adequate. One could quibble with certain emphases:too much on regional policy, too little on social-welfare programs and income distribution. The depth of treatment is at a level appropriate for a student who is beginning to study the French economy. However, the book falls awkwardly between two levels, at least for the American market. It is too detailed for an undergraduatestudent taking a generalcourse 91
0147-5967/84 $3.00 Copyright 0 1984 by Academic Press. Inc. All rights of reproduction in any form reserved.
92
BOOK REVIEWS
in comparative economic systems. On the other hand, this reviewer would not recommend the book for a graduate student becauseof its nonanalytical approach and the almost total absence of the use of economic theory in explaining the behavior of the economy. The major problem with the book is its tendency to become solely a list of facts.Of course,an understandingof the basicfacts is necessaryfor analyzing the determinants of a nation’s economic performance. But the meaning and significanceof thesefacts will be lost on the book’s relevant audience,students, unless the presentation helps that audience interpret those facts. Such interpretation can be provided in at least two ways: use of economic analysis and presentation of the facts in comparative perspective. With the use of economic analysis, even at a rudimentary level, the author could make the jungle of facts more penetrable to the reader. By presenting his own view of causeand effect within the economy, the author could build a framework for understanding the way in which the economy functions. Without such a framework, the presentation of detailed factual material can confuse rather than clarify. For example, we are told that France has weak trade unions and had price controls. Yet there is no analysisof the inflationary processto explain why France has had an historic tendency towards inflation. Alternatively, the author could clarify the significance of the facts by presenting them in comparative perspective.By making comparisons with other economies, an author can make clear the way in which the country being studied is different from others. In this way, the reader can begin to build a picture of the possiblecausesof comparative economic performance.However, such comparisonsare largely missing from this book. For example, the figures on the size and significance of various French industries do little to enlighten us becausethere is no information telling us in what way French industrial structure is different from that of other countries. Thus, this book is ultimately unsatisfactory because it eschewsmethods that would help us begin to understand the factors underlying the basic fact with which the book begins: the outstanding performance of the French economy. PETER MURRELL University of Maryland, College Park, Maryland