What is "dirigisme"

dirigisme \dir`i*gisme"\, n. [L. dirigere to direct.] The practice or inclination to direct (activities) by a central authority; as, the linguistic dirigisme of prescriptivists clashes with the modern tendency toward acceptance of multiculturalism. See also dirigiste.

n. Any economy in which the government exerts a strong directive influence, often with substantial, but not all, of the characteristics of a centrally planned economy.

Dirigisme or dirigism is an economic system where the state exerts a strong directive influence over investment. It designates a capitalist economy with a strong directive, as opposed to a merely regulatory role for the state.

The term emerged in the post-war era to describe the economic policies of the French economy, which included substantial state-directed investment, the use of indicative economic planning to supplement the market system, and the establishment of state enterprises in strategic sectors of the French economy. It resulted in an unprecedented economic and demographic growth, leading to the coinage of the term Trente Glorieuses ("Thirty Glorious [years]").

The term has subsequently been used to classify other economies that pursued similar policies, most notably the East Asian tiger economies, and more recently the economy of the People's Republic of China. A related concept is state capitalism.

Most modern economies can be characterized as dirigiste to some degree – for instance, the state may exercise directive action by performing or subsidizing research and development of new technologies, through government procurement (especially military) or through state-run research institutes.