From the famous annual Ramses report of the IFRI, Thierry de Montbrial’s book is a broad retrospective of the political and economic events that have marked the world for 20 years. The reader is impressed by the extent of the changes experienced by humanity. He is surprised to find that, despite its disagreements and dysfunctions, the European Economic Community – which became the European Union in 1992 – has exerted an increasing influence on other nations. He witnesses almost “live” the crises and the realizations of terrorism, financial bubbles, global warming … He observes the emergence of a new multipolar international system, both heterogeneous and global, marked by shared sovereignty. The author advocates a “variable geometry” regulation to adjust the devices (institutions, rules, systems) to the overall performance (economic, social, ecological) desired by civil society. These measures would respect the sovereignty of nation-states or federations of states. It would preserve the history of nations and the genius of peoples. Reading the book allows us to better understand the importance of the debates on global governance, revived by the current crisis. Review by J-J.Pluchart
DUDOUET F-X. and VION A., Sociologie des dirigeants des grandes entreprises (Sociology of the leaders of large companies), Eds La Découverte, collection repères, 2024, 125 pages.
The book deals with the controversial and fantasized subject of the leaders of large companies and contemporary administrations. The authors successively analyze the social and ethnic origins, genders, training, social networks, typical careers, functions performed, political and religious commitments, relationships to finance, diversity and ethics, etc. of senior executives around the world. They trace the evolution of these different parameters and compare them between national cultures. As good academics, they draw their reflections from the works of the most prestigious sociologists and economists: Weber, Veblen, Schumpeter, Marx, Bourdieu, etc. They also engage in useful semantic exercises, showing in particular the diversity of their titles: senior executive, “boss”, professional, president, managing director, Chief Executive Officer, director-manager, etc. The authors highlight the specificities of French leaders, both in terms of their education in the Grandes Écoles (X, HEC, ENA, etc.) and their status (more salaried), their backgrounds (more financial and/or organizational), their family backgrounds (more affluent), their careers (less international) and their networks (anchored in the senior civil service). The book is well documented and clearly written. It helps to demystify, at least partially, certain legends about “big heir bosses, rentiers and immovable”, who sit at the head of large Western companies. F-X. Dudouet is a research director at CNRS and A.Vion is a professor of sociology at the University of Nantes. Review by J-J. PLUCHART
PORCHER Simon, La fin de l’eau ?, Eds Fayard, 259 pages.
At the 2023 World Water Conference, the UN Secretary-General said, “We have broken the water cycle, destroyed ecosystems and contaminated groundwater.” We are heading towards a reduction in water resources because periods of intense drought harden the soil and during subsequent rains the water runs off and is no longer absorbed. The consequences are catastrophic, as the soil moisture content is too low for the groundwater to replenish itself. This will have consequences, among other things, on agricultural production, whose yields will decline and will lead to significant social consequences. The lack of water could become the main object of conflicts because drinking water is not a commodity like any other and it is not possible to depoliticize it because without water there is no life. Water is everyone’s business, the shortage concerns each and every one of us. It is essential to address water management in a comprehensive manner in relation to ecosystems, biodiversity and climate change because it is a factor of economic and human development. Access to water must be a priority today, otherwise adaptation to climate change will not be possible. Good water management is not relative to its ownership, but is a function of the ability to create good governance at the community level. Mechanisms must be built for large groups. The solutions to be adopted are necessarily local. Experiments in setting up rights of use already exist and make it possible to combine the market mechanism and public intervention. The financialization of water is not the solution. We must reinvent the economic model of water to limit waste and preserve the quality of the resource, this requires a better readability of the price, the reuse of treated wastewater, the desalination of seawater, the collection of rainwater as well as the collection of water from fogs in arid areas, the remuneration of the sobriety of consumers and producers as well as a better application of the polluter-pays principle. Simon Porcher is a professor of management sciences at the University of Paris Panthéon-Assas. His work focuses on the management and pricing of public water services. Chronicle by Michel GABET
Bruno BENSASSON, L’économie n’est pas qu’une affaire d’argent : Comprendre l’économie autrement, Eds Presses des Mines, 2024, 228 pages.
“When prices go up, does demand go down?” ” Yes, every other time; “Does GDP measure the wealth of a country? Not really: “Do quotas and taxes distort markets?” ” Yes and no; “Is it possible to work less – 35 instead of 39 hours – and earn more? Yes, but no. In these few entries that punctuate the 27 chapters of the book prefaced by Jean-Marc Daniel, there is no doubt that economics is not a hard science and it is far from being infallible. The author does not pretend to convince us otherwise. However, in this “accessible without prerequisites” exercise where the character of Robinson divides his time between work, leisure and rest, the equations are housed in the body of the text and tend to demonstrate that if Bruno Bensasson denies being an “economist by profession”, he will have largely walked on the plateaus of this honorable community. It is enough to refer to the list of authors cited where their dates of birth, death, key work as well as their striking quotes are scrupulously recalled. As Daniel reminds us, Edgeworth, who was also not an economist, was an unsuccessful lawyer who, in order not to have to pay for his heating, became an avid reader of Laplace and Maxwell, because their books were located on the shelves closest to the British Library’s stove. The economist William Stanley Jevons, having met him by chance, encouraged him to move from physics to economics! Let us bet that the author will not have to suffer too much from the cold to be forced to become an economist at his own expense. Bruno Bensasson is Executive Director of the EDF Group in charge of the Renewable Energies Division and Chairman and CEO of EDF Renewables. He is a member of the EDF Executive Committee and a director of Luminus and EDF Trading. Chronicle written by Alain Brunet
Michel ALLE. Nucléaire contre renouvelable : Pour en finir avec la guerre des religions, Royal Academy of Belgium, 210 pages.
The author deals with the highly debated issue in Europe of the rivalry between nuclear energy and renewable energies. After having posed the problems generated by the climate transition, by the revival of “old renewables” (hydroelectricity and biomass), by the maintenance of “historical nuclear power”, by the decline of fossil fuels (coal, oil and gas) and by the launch of “new nuclear power” (EPR) and “new renewables” (photovoltaic and wind power), the author analyzes the difficulties encountered by decarbonization, by the strengthening of energy efficiency (and especially electrical) and by the decoupling between economic growth and energy consumption. The author then compares the energy and electricity mixes, the variations in production and electrical capacities as well as the carbon emissions of Germany (whose nuclear phase-out he deplores), China (whose progress he welcomes), Denmark (which he sets up as a model), the United Kingdom, France, and Belgium (whose political decisions he criticizes). In conclusion, Michel Allé considers that the “religious war” between nuclear power and renewables is irrelevant. He believes that decarbonization is well underway but still insufficient. According to him, energy efficiency and economic growth will be mainly ensured by the new renewables, which are the main levers of decarbonization. Energy sobriety should play only a marginal role and fossil fuels should no longer benefit from subsidies. The advent of new nuclear power seems inevitable to him in the long term, but it depends on its competitiveness and the political choices of the main nation-states. Michel Allé demonstrates exceptional pedagogical skills on a complex subject. His reflection is presented in 30 short chapters, alternately technical, economic and geopolitical, which are illustrated with tables, graphs, references and glossaries drawn from the best sources. Michel Allé is an honorary professor at the Université libre de Bruxelles. He is notably a director of Elia Group, manager of electricity transmission networks in Belgium and Germany. Review written by J-J. PLUCHART
Benjamin BURBAUMER, Chine/États-Unis, le capitalisme contre la mondialisation, La Découverte, 304 pages
To overcome the domestic crisis, in the 1970s the United States decided to create a global market to restore the profitability of US multinationals. For its part, China sees globalization as an accelerator of national economic development. Although the motivations of the two great powers are very different, they agree that China must contribute to globalization. This apparent agreement turned, in the 2000s, into open conflict and a deep and lasting rivalry. The American capitalist vision is confronted with Chinese communism. This is when a turning point occurred: China decided to free itself from this “soft trade” by modifying the rules of this globalization under American supervision. It sets up new rules, creates not only physical but also digital and monetary infrastructures. China is proposing another vision of capitalism, a state-led, authoritarian and dynamic vision. In this book, the author provides in-depth insight to understand the why and how of current rivalries and the geopolitical limits of the US-China relationship. Benjamin Bürbaumer is an economist and lecturer at Sciences Po Bordeaux. A specialist in globalization and international political economy, he is the author of Le Souverain et le Marché (The Sovereign and the Market) (Amsterdam Publishing, 2020). Chronicle written by Florence Anglès
by BOISSIEU C. & CHESNEAU D. (eds), Réussir le transition énergétique et écologique, Eds Eska, 243 pages.
The book analyzes the progress made since the 2015 Paris agreements (COP 21) in financing the energy and ecological transition (EET). In particular, it highlights the progress of “global climate governance”, which has been rendered chaotic by the succession of the latest financial, pandemic and geopolitical crises. The book is of great interest in that it consists of analyses and positions that are sometimes discordant, allowing the reader to grasp both the diversity and the coherence of the themes of the TEE. The first chapter recalls the objectives and describes the implementation of COP 21. The second chapter presents the physical, financial, and transition risks incurred by states, companies, society, and the planet in the event of a drift or failure of the EET. Chapter 3 observes the influence of the different stages of the rise of extra-financial considerations in accounting and financial theories and practices, both public and private. Chapter 4 specifically analyzes the contributions and processes of carbon accounting. Chapter 5 describes the transformation of the strategic and financial management of companies under the effect of TEE. Chapter 6 shows how environmental law regulates climate and biodiversity damage. Chapter 7 analyzes the different instruments and presents the multiple actors (states, banks, financial markets, asset managers) who contribute to green financing. Chapter 8 studies the actions taken by central banks in these different financial circuits. The 9th chapter studies the economic model of the European Investment Bank. The penultimate chapter highlights the diversity of roles assigned to financial and extra-financial rating agencies in the issuance of “green bonds”. The last chapter measures the scope and limits of the Green Pact (European green deal). The book therefore provides an original, complete and nuanced overview of the legal, normative, organizational and instrumental frameworks for financing the TEE. The 12 authors of the book are managers of large banks and consulting firms (D. Chesneau, S. Dees, A. Fayolle, F. Meunier), university professors (C. de Boissieu, E. Carrey, A. Frisch, O. Garnier, P. Geoffron, J-J. Pluchart), and lawyers (C. Lepage, C. Huglo). Review written by K. WANTZ O’ROURKE
QUENNOUELLE-CORRE Laure, Le déni de la dette (The Denial of Debt). Éditions Flammarion, April 2024, 335 pages
The author seeks to challenge us on the fact that public debt has not been a part of the debate in France as it has been in Great Britain or Germany. How did we arrive at this sometimes irrational, denied or dramatized relationship? After financing the war of 1914-18, the Treasury Bond invites itself into homes, and already voices are being raised to note how insufficient the financial education of the public is. The lack of consent to taxation in France prevents any forced savings solution, as in Great Britain, where public debt becomes a sustainable and discreet way of financing state expenditure. After the Second World War, France did not choose rigor and austerity, but decided to settle its war debts through inflation and the devaluation of the franc. The period 1959-1973 saw the return to a more orthodox doctrine which has been described as a virtuous decade, with budget balance once again becoming the priority. After the oil shock of 1973, a generalized social assistance system financed directly by the state was put in place to respond to the concern of public opinion, more concerned with unemployment and its purchasing power than with the budget deficit. Government bond issues were reserved for professionals, which made public debt “invisible”. Since 1975, France’s budget has never been balanced and its deficit is mainly financed by loans. The word debt was not used and was confused with that of budget deficit. The establishment of the Euro obliged France to be more virtuous, and the theme of debt entered more and more frequently into public debate. With its political and economic weight, France can be less virtuous than other countries in the euro zone. In 2006, the publication of the Pébereau commission’s report “Breaking with the facility of public debt” highlighted the State’s lack of productivity, the proliferation of ineffective actors and instruments, and above all, France’s ease of indebtedness on the financial markets, which played a numbing role, and received a real response from the media and politicians. After the sovereign debt crisis of 2010, debt became a key issue in public debate and became politicized. Debt plays a major role in balancing public accounts and, in turn, in the standard of living of the population. Since the pandemic and the “whatever it takes” attitude that has made the discourse on budgetary seriousness inaudible, public debt has become a matter of concern. The Court of Auditors issued a warning before the vote on the 2024 budget: “if we do nothing, the explosion of debt will paralyze public action”. The diversion of debt for political purposes prevents a real democratic debate on its social implications. The social divide is coupled with a generational divide that prevents any consensus. This is a decisive collective and political issue that must be addressed quickly. Chronicle written by Michel GABET
PEICUTI Cristina, Histoire Monétaire et économique de la France de 1944 à nos jours, Eyrolles, 316 pages. Foreword by Jean-Marc Daniel.
The author traces the history of economic policies undertaken in France and Europe since 1944. She engages in a thorough critique of the measures taken by French rulers, mainly in financial and monetary matters. Her book is presented in the original form of a linear narrative without theoretical references but illustrated with numerous quotes that make reading more lively. The author demonstrates exceptional historical knowledge, as evidenced by references to great financiers, bankers, politicians, and economists, but also philosophers, novelists, and poets. In a precise and metaphorical style, she brings to life the main events that have marked contemporary history and… many readers of the book. Christina Peicuti shows in particular that since the post-war period, France’s economic recovery plans and its opening to Europe and world markets have often been thwarted by internal and external events of various kinds: colonial wars, the “May 68 crisis”, oil shocks, the subprime crisis, the pandemic, the “yellow vests” movement, the war in Ukraine, etc. Regardless of their political orientations, successive governments have ignored the phases of international market cycles and have favored, in all circumstances, operating expenses (the “whatever it takes”), “fiscal hammering” (especially of companies) and public debt, over structural reforms and, above all, investments in research, in order to fight against unemployment with unequal results. This “economic dirigisme” and “inflationary Keynesianism” have led to a decline in France that is increasingly difficult to reverse. This “culture of spending” has stifled the revival of economic activity, slowed down France’s European integration and contributed to its deindustrialization. Cristina Peicuti (professor at ESCP) is an economist in a cooperative banking group. Her doctoral thesis (Université Paris 2) focused on the 2008 financial crisis and the credit channel. She is the author of several books and scientific articles, including The European Economy in 100 Quotes, PUF, also published in 2024. Review written by J-J. PLUCHART
FRESSOZ Jean-Baptiste, Sans transition, une nouvelle histoire de l’énergie (Without transition, a new history of energy), Editions du Seuil, 2024, 333 pages
J-B. Fressoz has published an original book on the history of energy and a reflection on economic thought. He engages in a polemic against “Nobelized” economists such as Jevons, Veblen, Nordhaus and Romer. Their theses have concealed the gravity and urgency of the climate challenge. In particular, he argues that the notion of “creative destruction”, put forward by Schumpeter, is responsible for the relative inaction of governments in the face of the climate crisis. Fressoz revisits the history of energy, which covers a succession of energy systems, separated by transitions “from the organic economy to the mineral economy,” “from coal to oil,” or “from fossil fuels to renewable energies.” These transitions are marked, according to the author, by perception biases that he describes as “transitionist.” The author analyzes “the symbiotic entanglement and expansion of all energies” since the beginning of the19th century, stating that “the history of energy is not that of an accumulation”, but that of the “intellectual construction of the energy transition” – both “technological project” and “industrial slogan” – which, since the 1970s, has been imposed as “the future of experts, governments and companies”. Fressoz’s account innovates both conceptually and formally. In particular, he introduces the notion of a “symbiotic entity”: he considers, for example, that wood, coal, and oil are more “symbiotic entities” than mere sources of primary energy competing with each other. The economist must integrate all the material processes related to the production of these three energies, and demonstrate that each of them “has drawn consumption from the other two, including for energy uses” . Fressoz’s “new history of energy” covers two centuries of industrialization of the world, marked not by “transitions”, additions, or energy destruction, but by “new symbioses between fossil and alternative energy sources. » The entire book remains homogeneous, although some excerpts are revised versions of articles or chapters of previously published works. Jean Baptiste Fressoz is a historian of science, technology and the environment. After having been a lecturer at Imperial College London, he is now a researcher at CNRS and a teacher at the École des Ponts et Chausssées. Review written by Jean-Jacques PLUCHART