DIRIGISM Meaning and
Definition
-
Dirigism refers to an economic system or policy characterized by strong governmental direction and intervention in various sectors of the economy. It is a form of state control, where the government assumes a dominant role in guiding and regulating economic activities, often with the aim of achieving certain specific objectives.
In a dirigist system, the government actively participates in the planning, organization, and management of economic activities. It may establish specific targets, allocate resources, regulate prices, and control production and distribution. The government operates with the belief that markets alone cannot efficiently allocate resources or achieve societal goals and therefore requires intervention to ensure fair distribution and economic stability.
Dirigism can be implemented in various ways, ranging from limited intervention in specific sectors to broader control over the entire economy. It often involves the establishment of state-owned enterprises and direct government investment in strategic industries. Additionally, dirigist policies may include protectionist measures such as tariffs and quotas to promote domestic industries and shield them from foreign competition.
Proponents of dirigism argue that it allows the government to correct market failures, promote social welfare, and ensure economic development. Critics, on the other hand, contend that excessive state intervention can lead to inefficiency, stifled innovation, and reduced individual freedom. The effectiveness of dirigism as an economic model has been a subject of debate among economists and policymakers throughout history.
Common Misspellings for DIRIGISM
- sirigism
- xirigism
- cirigism
- firigism
- ririgism
- eirigism
- durigism
- djrigism
- dkrigism
- dorigism
- d9rigism
- d8rigism
- dieigism
- didigism
- difigism
- ditigism
- di5igism
- di4igism
- dirugism
- dirjgism
Etymology of DIRIGISM
The word "dirigism" originates from the French term "dirigisme". The term emerged in the early 20th century and is derived from the French verb "diriger", which means "to direct" or "to manage". Dirigism refers to an economic and political system characterized by strong government intervention and direction in the economy. It was developed as a response to the challenges faced by Western industrialized nations in the aftermath of World War II, seeking to balance the perceived flaws of both laissez-faire capitalism and centralized socialism.
Infographic
Add the infographic to your website:
