Changing Locus of Global Economic Power for France - Report Example

Changing Locus of Global Economic Power for France Introduction Shifting the loci of power has a major impact on the behaviour of consumers, producers, suppliers, government and other stakeholders within and outside the economy of France. Globalization demands attention because it has the power to alter the regulatory frameworks that exist at national level and could unravel the social compromises that are in place. Evolution in each economy based on the parallel transformation process started with the introduction of mass production concepts that did structure the then burdens as well as benefits characteristic of growth together with change. Such a compromise did lead to different outcomes for every country with France facing a number of state-led compromises. However, the locus of global economic power happens to only favour market-led options towards the economic form of governance due to its flexibility in relation to labour and the financial markets. The change of France since 1986 has been immense (Weiss, 2003, pp.106-111). The country did assign instruments characteristic of monetary policy such as the interest rate. This country had traditionally adopted industrial development and the state-led decisions did cut back on the level of indirect and direct subsidies to a large degree. The state was also involved in the reforms aimed at giving the French financial markets the strong muscles needed and institutional investors; more so from US, went ahead to heavily make investments in France. Change is also seen in the policy implementation related instruments such as laws aimed at regulating the banking industry. With the coming of changing locus of global economic power, much of state-led policies have been abandoned, for instance, the independence of central bank over its legislative power in monetary affairs and subsequent loss of monetary policy prerogative by the state since 2000. The aim of this paper is to analyse the changing locus of global economic power for France. Table 1.1: GDP Figures for 20 Year period Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 GDP 2.65 1.01 1.19 -0.82 2.17 2.25 1.06 2.17 3.41 3.18 Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 GDP 3.87 1.79 0.95 0.89 2.35 1.87 2.65 2.23 -0.21 -2.63 Year 2010 GDP 1.38 The above figures are represented on a chart below. Figure 1.1: GDP Figures for 20 Year period Source: IndexMundi (2011) Analysis Factors that are contributing to the current growth and decline of GDP in France include climate change, new technology, terrorism, conflict and proliferation, complex international system and unemployment. In terms of climate change, it affects the scarcity of resources in a sense that regions will suffer greatly with lack of water. This will eventually affect the agriculture sectors production either interns of growth in case of more water or decline in the case of water scarcity. Agriculture being that accounts for a large share of the economy, these contributes to GDP growth or decline (Clift, 2005, pp.80-86). New technologies are also contributing to the growth and decline of GDP in France. Although the traditional energy architecture is widely used in the agriculture sector, new technology has come up with ways to overcome energy transition, food and water constraints. This is so through inventions of green house and modernized irrigation systems which either reduces or increases production in return (Frieden & Lake, 2000, pp.128-145). The technology on energy transitions would reduce the infrastructure costs on energy and these affects the GDP growth or decline. The fact that there exists global terrorism is a great challenge to France and even other nations. These affects GDP in a way that terrorism deprives a nation of its potential youths who are misguided and fed wrong ideologies that makes them antigovernment citizens rather than work together towards developing the governments resources to a better production(Holmes, 1970, pp.150-154). On the other hand, conflicts within states affect the GDP growth or decline since the government spends a lot of resources on conflict resolutions. These might include war, or preparing war machineries (Lind, 2010, pp.67-87). If there is no fear of conflict, then the government can divert the resources to production hence increasing GDP of its nation. On the international system, the monotony of authority is changing with many new players streaming in the international markets hence creating diversity and strength to nations to increase their produce and attain the economic supremacy (Reynell, 2009, pp.54-59). In the coming years the trend of France gross domestic production is eventually going to gain a higher notch. These is so in that with more civilized ways of resolving conflicts, chances of a war are few and this diversion of resources to national produce increases annually(Best, 2008, pp.300-310). When the nation or nations can contain the terrorism factor, then many of its youths could become more productive in national production achievement. Lastly, the production is going to be high with anticipated breakthrough in new technologies that are going to increase the production process and reduce its infrastructure costs (Xerox University Microfilms & University Microfilms International, 1997, pp.34-56) France has a total population of 64,768,389.52 with 62,814,233 in metropolitan as per the 2010 estimate. The population can be structured in age where 18.6% consists of 14 years and below, 65% consists of the age between 15 and 64 years and 16.4% consists of the age of 65 years and above. Among the age of 14 years and below, the population has 6,129,729 male and 5838,925 female. In the population of between 15 to 64 years, the population of male is 20,963,124 while that of female is 20,929,280. Lastly in the population of 65 years and above, it has 4,403,248 male and 6,155,767 female. The growth rate is that of two children per woman with many giving birth at an age of 29 years (Clift, 2005, pp.80-86; Maddison, 2003, pp.120-126). The above demographic data is mostly likely to change in the coming years with more immigrants streaming in France hence increasing its population (Lindert, 2004, pp.23-34). The increase in population is going to have an economic impact since it will have a much bigger man power in terms of labor force which is essential to economic growth (Alex & Mommen, 1998, pp.150-167). With the bigger population and diversity in economic production, the nation will end up with a dependent population that meets all the economic requirements. In terms of pension system, the population increase will also increase the pension scheme of the government hence creating a stabilized nation in terms of economy. Lastly, with diversity in the large population the demand for demanded products is going to be mate since the production will also be high in the domestic market (Gourevitch & Shinn, 2007, pp.274-283). Conclusion Indeed the state of France’s global economic power is changing. The force of globalization has taken toll on the country and its loss of power to control the national economy is evident. Although with more renewed force it can make a change, more still needs to be down to increase its economic production level. These could be attained through serious concentration on new technologies like in the energy sector that can improve the production sector locally and globally. Modernised climate change such as irrigation should be encouraged to improve the agriculture sector which has been proven to be essential to the national economy. Also France as a nation should divert its resources from the terrorism factor and divert it to a more productive sector like employment of the youths whose manpower could increase the nation’s production more high. With the decentralised globalization, France has a better chance of increasing its production both locally and globally since all nations have a chance to contribute to the globalisation. to be essential to the national economy to be essential to the national economy This has been further fuelled by the Euro zone. The issue of globalization seems to have Americanised the conduct as well as institutions of the economy. The locus of France in global economic power is indeed changing. However, more positive developments are expected in the coming years. List of References Alex E. F. J. & Mommen A. (1998) Regionalization and globalization in the modern world economy, Taylor & Francis, 150-167 Best A. (2008) International history of the twentieth century and beyond, Taylor & Francis, 300-310 Clift B. (2005) French socialism in a global era, Continuum International Publishing Group, 80-86 Frieden J. A., Lake D. A. (2000) International political economy: perspectives on global power and wealth, Routledge, 128-145 Gourevitch P. A. & Shinn J. (2007) Political power and corporate control: the new global politics of corporate, Princeton University Press, 274-283 Holmes R. B. (1970) The Changing structure of Europe: economic, social, and political trends, U of Minnesota Press, 150-154 IndexMundi (2011) France GDP - real growth rate. [Online] Available at: Accessed 27th February 2012 Lindert P. H. (2004) Growing Public, Cambridge University Press, 23-34 Lind J. M. (2010) Sorry States: Apologies in International Politics, Cornell University Press, 67-87 Maddison A, (2003) The world economy: historical statistics, Organisation for Economic Co-operation and Development. Development Centre, OECD Publishing, 120-126 Reynell C. (2009) The Economist, Charles Reynell, 54-59 Weiss L. (2003), States in the Global Economy: Bringing Domestic Institutions Back In, Cambridge University Press, 106-111 Xerox University Microfilms &University Microfilms International (1997) Dissertation abstracts international: The humanities and social sciences, University Microfilms International, 34-56 Read More