Markets and politics in France's declining regions

France has adopted an explicit policy of countering the decline of its old industrial areas, by encouraging a process of reindustrialization in those regions. The French experience illustrates the challenge that such an approach encounters, including dificulties arising out of policies of the European Community, the efforts of the government to achieve national growth targets, the locational preferences of potential “replacement” industries, and political and financial constraints on regional governments when they assume an entrepreneurial role. In the end, the effect of government intervention proves complex. Although the principal effort is directed at cushioning the pressures of market forces, the net result of public policy is often to transmit such forces more directly than in the past.