French model - Study of socio-economic and political processes

French model

France is a highly developed industrial-agrarian state that has long played an important role in the world economy and in international relations. The peculiarity of the economic model of France is a high share of the public sector. Because of the high role of the state in the country's economy, such a system is often called an etatist model. The state enterprises of France are traditionally divided into two groups: administrative institutions and joint-stock companies.

The status of an administrative institution (public public service enterprise) contains separate elements of administrative law, although in general the activities of these institutions are governed by the rules of commercial law. These are the enterprises that perform the functions of the public service and, as a rule, are monopolies. The largest French companies (oil production and refining, automotive, electronics, etc.) are primarily enterprises with state participation. Social market economy with elements of statism smoothed the negative features of capitalism in France. A feature of the French economy is the combination of ultra-modern economic forms with the archaisms of the past.

France differs from other EU countries in carefully regulating the issues of insurance risks associated with the preliminary study of the market, changes in foreign exchange rates, organization of fairs, exhibitions, warehouses, foreign investments abroad, unforeseen price increases during the manufacture of export products. Social policy is positively solved due to the availability in France of criteria differing from the generally accepted Western practice of grading loans by maturity: loans from two to four years are considered medium-term, and more than four years-long-term.

As part of the prevention of consumer risks in France, strict sanitary requirements apply to imported plant and animal products, medicines, and certain products of the chemical industry. To curb the import of agricultural goods in France, along with customs fees, a system of compensation fees is used, which is the difference between, as a rule, the high price of the community for a particular type of agricultural produce and its world price. Single prices are set by the EU Commission and are revised annually. The difference between single and world prices can fluctuate depending on the goods from one and a half to five times.

The modern economy of the country develops under new conditions: the globalization of the world economy and the unification of Europe have a significant impact on the national economy. For successful global development, it is necessary to liberalize the economy, abolish internal regulation, as well as new technologies that can serve as a scientific and technical basis for economic growth. Social guarantees are financed mainly at the expense of taxpayers. In the country, not only indirect and individual income taxes are high, but also social contributions of entrepreneurs. For example, if in the US social contributions are only 6.3%, then in France - 19.3% of the country's GDP.

The share of foreign capital in the French economy (in industry - up to 40%, in real estate - about 27.5%, in trade - 20%, in services - 9%). Over 20% of the working people work at enterprises with foreign capital. Especially large is the share of foreign capital in informatics and other branches of advanced technologies (over 50%). Currently, Paris is winding down measures to stimulate the economy, canceling tax breaks and freezing most government spending to reduce the budget deficit to 3% in line with Eurozone standards by 2013.

French companies rank second in the world (after Japan) but produce power equipment for power plants. France is a leader in the rocket industry of Western Europe.

Although the basis of agriculture remains private land ownership, it is the most state-tied industry. In terms of output, France ranks first in Western Europe and third in the world after the United States and Canada. French products are traditionally highly valued because of its quality, French farmers are the main opponents of the introduction of genetically modified products in Europe.

More than half of the farms exist on their own land. The most important place among them is occupied by cooperatives, first of all, by the use of agricultural machinery. Cooperatives operate in all spheres of production. State regulation is carried out mainly through economic impact. Agriculture is highly industrialized. According to the equipment, the use of chemical fertilizers, it is second only to the Netherlands, Germany and Denmark. A significant place in the economy of France was occupied first of all by American capital (it controls enterprises that produce 80% of electronic computers, 70% of agricultural machinery, 65% of communications, and a number of food-processing enterprises).

Factors that will affect the pace of economic growth are rising unemployment, slowing the growth of wages and reducing consumption, tightening fiscal policy in the country and in partner countries, uncertain prospects for external demand. Low competition of the national economy is explained by the general high tax burden, weak competition in the services sector and structural rigidity in the labor market.

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