@ Stegerwald
Stegerwald wrote:Unfortunately my own knowledge about Chile is zero, and with regard to France it is limited to the trade unions. However, the French government of Mauroy, during the period 1982-1984, was indeed a shared project of Mitterrand (PSF) and Marchais (PCF).
It is striking that sometimes right-wing governments have applied socialist policies. For instance, immediately after WWII large parts of western Europe used central planning. This was necessary in order to repair or rebuild the devastated infrastructure. An additional reason was that the USA obliged the European states to render an account of the expenditure of the Marshall aid. The OECD is a spin-off of this surveillance.
The case of France during the presidency of De Gaulle is particularly interesting. From 1947 until 1970 France was fairly successfull with the application of four-year planning. Although the plans were indicative, the trade and industry were willing to comply, since the state controlled the banks (and thus the credits). The plans were based on the material (physical) production. Planning was made easy by the fact, that France had little foreign trade. The French call this period the Trentes Glorieuses.
However, the state found it difficult to restrain the inflation. Priority was given to the stimulation of the national demand, in order to realize the goals of the plan. As a result the French franc was a weak currency, which was devaluated several times. Therefore the fifth plan included value planning.
It is evidently interesting to compare the performance of the French plan-economy with the German economy, which has a preference for market mechanisms. In fact in the period 1945-1970 the growth rates were similar, so that both economies performed equally well! (You can check this for yourself. Nowadays there are lots of economic databases available on the web).
Still, this conclusion has a limited validity. For when the trade in the European Community intensified, it became more difficult to plan the French economy. France was no longer free to devaluate, since devaluation comes to a rather unfair method of international competion. An additional problem was the acceleration of the technological progress. From 1970 onwards the economic results deviated strongly from the planned goals. From 1980 onwards the plans no longer contained concrete goals. The market mechanism had triumphed also in France.
It is fascinating to see that central planning (a socialist idea) existed in a capitalist state, albeit in special circumstances.
Snoopy: Here's the WWI flying ace posing beside his sopwith camel. My mission is to seek out the Red Baron, and to bring him down! Contact!