Sunday, February 03, 2008

300 decisions

Last July Nicolas Sarkozy asked Jacques Attali to investigate how to promote economic growth in France. The resonantly named Commission pour la libération de la Croissance française reported last week and and has been making waves. The report is wide-ranging, covering health, education, transport, deregulation, technology, tourism....

Attali was an interesting choice. He made his name as an economic adviser to the socialist president François Mitterrand before becoming head of the post-communist European Bank for Reconstruction and Development in the early 90's, a useful apprenticeship for the equally challenging task of rebuilding France.

Attali rather hopefully said that his 316 measures were interconnected and must be implemented as a whole. The prime minister François Fillon has been letting him down gently, saying this this was 'maybe a little excessive'. But the government does so far appear to be taking the report seriously and intends to act on it promptly.

It's intriguing to see how often the UK is cited as an example of good practice to which France should aspire. Attali praises the UK's sustained engagement in reform of school and health systems, in markets and public services, and its financial services industry. Detailed recommendations where the UK leads the way include, for example:

US/UK model for university research funding (Decision no. 29)
Help research establishments to commercialise their discoveries (31)
Facilitate access by smaller companies to the Alternext market, cf AIM in London (40)
Open up the mobile phone market (61)
'Massive' development of preventative healthcare (66)
Construction of Ecotowns (91)
Harmonise financial services rules with those of the UK (97)
Massively develop teaching of business English (100)
Develop low-cost airlines (104)
Develop better paths for changing employment between private and public sectors (148)
Welcome more foreign workers (222)
Advance evaluation of new legislation (231)
Committee for Better Regulation (232)
Speed of enacting European directives (238)
Use of agencies for public administration (248)
Civil service employment contracts along private sector lines, not for life (256-7)
Performance indicators for local public services (265)

Many other recommendations are already well established in the UK, for example:
More autonomy for schools (4)
Schools inspections, results to be published (5)
Parents to be able to choose schools (6)
Deduct income tax at source (PAYE) (304)

Clearly the UK is a shining economic paradise.

Some of Attali's recommendations will run into trouble. I doubt whether the public services can cope with every secondary school child having to do half a day of civic service per week. And three weeks a year of work experience from age 13 upwards does not fit well with the high rate of youth unemployment in France (Attali says rather weakly that companies tempted to rely on work experience rather than offering real jobs to youngsters should be 'dissuaded'). And the most outrageous protected sectors attacked by Attali are outraged. The taxi drivers are threatening to take to the streets (!). But with the price of a second-hand taxi licence at Orly now running at 400,000 euros, there's something very wrong with the taxi market and he's right to address it.

My favourite Decision is number 213. There is a class of lawyers called Avoués près les cours d'appel. They have had no purpose since their monopoly was abolished in 2001 but there are still 444 of them drawing fees. Attali recommends that the position should be abolished.

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