University of Sheffield B.M. Clift Towards a New Political Economy of Social Democracy? : The Fall and Rise of the French Parti Socialiste 1990-1998 PhD 2000 Towards a New Political Economy of Social Democracy? : The Fall and Rise of the French Parti Socialiste 1990-1998 Ben Clift PhD Department of Politics, University of Sheffield March 2000 THESIS SUMMARY This thesis seeks to explain the organisational, programmatic and ideological renewal of the French Parti Socialiste (PS), employed as a test case to examine the veracity of the 'crisis of social democracy' literature. Chapter I reviews the crisis of social democracy literature, introducing a framework for the analysis of social democracy in general, and the PS in particular. Chapter 2 establishes the historical and institutional context of PS development. Chapter 3 demonstrates how organisational changes have altered the opportunity structures of the key actors, crucially affecting how the party articulates its electoral and policy strategy. Chapter 4 explores PS electoral strategists' attempts to resolve problems posed by the fragmentation of homogenous electoral blocs of support, increasing electoral volatility, and the competitive challenge of new parties. Chapter 5 analyses PS ideological evolution in the 1990s in the context of the collapse of 'actual existing socialism', the exhaustion of traditional social democratic means, the enforced peaceful co-existence with the new market orthodoxy, and the increasing relevance of supra-national co-ordination for social democracy. In Chapter 6 we will explore the implications of globalisation for social democracy. The thesis rejects the 'hyperglobal' interpretation of the relationship between social democracy and globalisation, which asserts that national economies are now subsumed into a 'borderless world', within which social democracy is an historically exhausted project. Analysis of the development and implementation of the PS's macro-economic policy, job creation policy, labour market policies, and 'structural adjustment' policies, such as the shift towards a 35 hour week, demonstrate enduring social democratic policy activism. Chapter 7 presents a comparative political economic analysis of the economic strategies of the PS and the British Labour Party which further illustrates the potential for social democratic policy activism. Finally, the conclusion summarises and draws together the arguments. ii Introduction Organisational Change p.2 Electoral Strategy p.4 Ideology p.6 Economic Strategy p. 8 Summary p.9 Chapter 1 The Crisis of Social Democracy The Crisis of Social Democracy p. 11 Analysing Social Democracy p. 12 National-Level Factors p. 12 Party Specific Factors: Social Democratic Party as Independent Variable p.14 Global-Level Factors p. 15 The Crisis of Social Democracy: 3 Dimensions p. 15 1. The Electoral Crisis p. 15 2. The Ideological Crisis p.20 i) The Crisis of Socialism p. 20 ii) The Crisis of Keynesian Social Democracy p.22 3. The Programmatic Crisis: Globalisation and Social Democracy p.27 Is Social Democracy Unworkable Given Advancing Processes Of Glob ali sat ion? p.29 Chapter 2 Historical And Institutional Context Of The PS Introduction p. 37 The Impact of Centre-Periphery Relations on the Parti Socialiste. p. 39 Cumul des mandats and the Affect on Political Parties. p.41 The Parti D'Epinay: Internal Centre-Periphery Relations p.44 and the Union de Gauche. French Trade Unionism and the Parties of the Left p.46 The Absence of Social Democratic Corporatism in France p.48 The Institutional Context of the Fifth Republic and Presidentialism p.49 Fifth Republic and the Presidentialised Party System p. 52 Mitterrand and the Union de Gauche . p. 53 The Congenital Weaknesses of the French Party System p. 56 Party System Change in the 1980s and 1990s p. 59 The Socio-Economic Structure an the PS Electorate 1970-1990 p.62 Conclusion p. 66 Chapter 3 Organisational Change In The PS Since 1990 Introduction p.68 The Party as an Independent Variable p.69 iii A Framework for the Analysis of Intra-Party Politics in the PS: the p. 73 Importance of Presidentialised Factionalism The Causes of Factionalism p. 74 French Socialist Factionalism in the 20m Century p. 76 The Fifth Republic and the end of the SFIO p. 76 Le Parti D 'Epinay p. 78 The Official and Actual Authority Structures p. 79 The Worst Excesses of Courant Fighting: The 1990 Rennes Congress p. 81 The Changing Structure Of The Courants p. 82 The Changing 'Political Space' of Factionalism p. 84 Institutional Reform - Curbing the Courants p. 86 One Member One Vote p. 87 La Commission de fa Vie interne: p.90 Towards Direct Internal Democracy 1991-1994 Putting The Ideas Into Practice - Lionel Jospin's Return p.94 Lionel Jospin and the 'Presidential Party' p.98 Parliamentary Reform p. 100 The Failure of the Quart Societal and p.l02 the Enduring Problem of Co-optation Le Parti Socialiste Nouveau Est Arrive? : p.l05 Elite-Level Rejuvenation and Feminisation Changing Methods of Organisational and Doctrinal Change p.l08 Conclusion p. III Chapter 4 PS Electoral Strategy in the 19908 Introduction p. 113 The 'Demand and Supply' Model and PS Electoral Strategy p. 114 1993 - The Worst Defeat in the History of French Socialism p. 119 The 'Big Bang' and the Assises de la Transformation Sociale p. 122 From Big Bang to Damp Squib p. 126 1995: Jospin's 'Successful' Defeat p.128 The Allies 1. PCF p.130 The Allies 2. Les Verts p.132 PS Electoral Strategy Since 1995: La Gauche plurielle p.135 The 1997 Legislative Elections p.137 PS Electoral Strategy at the End of the 1990s p.142 Conclusion p.143 Chapter 5 Ideological Redefiniton in the PS Introduction p.145 The Nature of Doctrine, and the Courants within the PS p. 147 The Instrurnentalisation of Doctrine p. 151 The PS and Marxism p.154 iv The Parti Communiste as 'Ideology of Reference' p.156 Les Lendemains ne Chantent Plus!: The End of Transcendental Rhetoric p.158 La Duree ou L '/dentite p.160 The PS and Europe p.162 The PS in the 1980s and 1990s Constituent Elements of its Ideological Identity p.164 Historical Allegiances: 1. The Rocardians p.166 2. The Mitterrandists p.168 The Ideological Outliers: 1. The Poperenistes p.169 2. La Gauche Socialiste p. 171 3. La Troisieme Gauche - The Blairites p.l72 PS Ideological Redefinition Since 1995 - Realisme de Gauche p.173 Socialism and Republicanism p.175 Realisme de Gauche and the Ongoing Process of Ideological Redefinition p. 176 Today's Key Debates: 1. European Integration p.l77 CERES, alias Socialisme et Repub/ique, alias Mouvement des Citoyens p. 180 La Gauche Socialiste p. 180 2. The Role of the State p.182 3. Egalitarianism and French Socialism p.185 Conclusion p. 189 Chapter 6 PS Economic Strategy in the Late 1990s - Realisme de Gauche Introduction p. 192 Globalisation and Social Democracy p.194 International Trade p.195 Impact p.197 Multi-National Corporations p.198 Impact p.199 International Financial Enmeshment p.200 Impact p.203 Global Financial Markets and the Dominance of Economic Orthodoxy p.205 Neo-Liberalism, Credibility, and the Pro-Stability p.206 Post-Monetarist Intellectual Consensus Globalisation and French Economic Strategy p.209 1983-1993 : Competitive Disinflation Credibility and French Economic Strategy p.213 After Competitive Disinflation p.221 Pensee Unique p.223 Changing Diagnosis of the Economic Problem p.228 Realisme de Gauche p.231 Privatisation, the Public Sector, and Public Services p.234 Structural Reforms to Tackle Unemployment: 1. Youth Employment Plan p.238 2. The 35 Hour Working Week p.241 Anticipated Results p.246 The European Dimension p.247 v European Economic Integration & French Macro-Economic Policy p.248 Monetary Policy p.250 Fiscal Policy p.253 The Problems of European-Level Co-ordination p.257 Conclusion p.260 Chapter 7 Comparative Political Economy: The PS and New Labour Introduction p. 262 Globalisation p.263 Social Democracy p.264 New Labour's Third Way p.265 The Third Way and Realisme de Gauche p.268 Blair's New Economics, Globalisation and the Third Way p.270 Proposals for International Financial Re-Regulation p.272 Macroeconomic Policy Stance p.274 Macroeconomic Policy, Employment and Supra-National Policy Activism p.279 The European Social Model: A Social Democratic 'Buffer' Against p.282 Globalisation? Welfare Provision p.283 Labour Market Institutions p. 284 Third Way Labour Market Policy and Employment-Centred Social Policy p.287 Commonalities of Approach to Employment Policy p.288 NAIRU and the 'Compartmentalisation' of Employment Policy p.289 French Employment Policy: Public Sector Job Creation p.291 35 Hour Week p.291 Industrial Relations p.292 Conclusion p.294 Conclusion The Party as an Independent Variable p.297 Electoral Crisis? p.299 Ideological Redefinition p. 300 Globalisation and Social Democracy p.302 Methodological Appendix p. 306 List of Interviewees p.312 List of Abbreviations p.314 Bibliography p.316 vi Introduction Two factors cast a shadow over the future of social democracy. One is the 'crisis of social democracy', and the other is the process of globalisation. Social democracy came to rely upon the potentialities of the nation state to 'deliver' social democratic 'goods'. The nation state's role as the principal regulator of economic activity within a well­ defined national economic 'space', was a fundamental 'given' of the Keynesian paradigm. 'Hyper-global' theorist's excitement about the end of the nation state is surely premature. However, the areas of nation-state activity where global theorist's predictions are most prescient (the nation-state's ability to regulate its national economic space) are precisely those potentialities of the nation-state on which social democrats came to depend. Programmatically, then, these are hard times for social democracy. However, we argue that it is a misconception to see markets 'imposing' a neo-liberal policy agenda on governments.