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March 28, 2006

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Count me a skeptic on your scenario. I'm afraid France has tightly identified the dynamism of the global marketplace with America. The analysts (whom the French continue to produce and whom Newsweek still covers) would say that they've cathexed the energy of all things modern (read: evil) with the US. This make the assimilation of the introjected object (that is, an unconstrained marketplace) very difficult. This is a dynamic that can lead to a nasty case of sadomasochism, and I think France is well situated to play the scenario out in that fashion.

Tom, a fine analysis, hoisting them from their own petard. But I think the French might be prepared to change every thing about France to save the idea of France. Because this is one of the great and transcendant brands, an end whatever the means. The Chinese worked this slight of hand to bring the country to capitalism. Thanks, Grant

Thanks for your optimism about the French - I still want to believe they will wake up, act and find a new way again like they did in the past... whatever the motivation is.

Unfortunately, fifty years of comfort and self-sufficiency have had their toll and it is indeed very difficult to change turtles in the middle of the stream. Thinking and complaining is free but acting requires engagement and responsibilities – a tough leap forward when you have been so comfortable for so long. And today France lacks the leader(s) to do just that and pull it forward.

We should follow what will unfold with attention though. There are attempts to find a another way between capitalism and communism: China is certainly one. The free marketplace idea has many merits but also some limitations. Now that the population is aging, that more people are uninsured or under the level of poverty and that global competition is increasing, the marketplace cannot serve the social good as well as it once did and the model will ultimately evolve here as well.

All fears and inertia pushed aside, French do believe in Liberté, Egalité, Fraternité. And the model that they are asked to embrace does not include all three. We will have to find our own way. Which of course will serve our ego very nicely…

Jean-Jacques, I defer to your deeper knowledge and finer judgment. And yes, we should watch this experiment. Thanks, Grant

Grant

The US and Margaret Thatcher's 1980s Britain are perhaps the most famous of the relatively few countries where pundits believe in the power of unfettered markets to deliver miracles. Markets are universal and are one of our oldest social institutions. However most economists who write about free markets and the experiences of all those who live in them, show clearly that markets do require a strong degree of regulation if they are to remain free, open and effective.

It is in this regulatory turtle that the French, and the Germans, and the Belgians, and... with their emphasis on social as well as commercial fairness differ so much from the US & 1980s Britain. And Asian models of free markets in Singapore, Hong Kong or China are different yet still.

It is not obvious at this point that any one model of market-based capitalism is universally better than any other, least of all the US & 1980s British one where social unfairness is an obvious problem.

Perhaps Victor Hugo said it best when he said "A day will come when markets, open to trade, and minds, open to ideas, will become the sole battlefield.".

The $64,000 question is, which model of market best suits which land.

Graham Hill
Independent Management Consultant

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