Regions and towns

A centuries-old tradition of political and economic centralisation left France with marked regional disparities in the years following the Second World War. France’s capital, Paris, was excessively preponderant, with more than 15% of France’s population at the time. The contrast between town and country was great, with much lower levels of development in rural areas. The government has implemented a regional development policy to redress these imbalances since the mid-nineteen-sixties with the aim of improving the distribution of people and activities.

Economic and social development goals
Impact of regionalisation and European policies
New development dynamics

The earliest tools for regional development were defined in 1955. The Regional Development Agency (DATAR) was set up in 1963 and became the main instrument for government action. It oversaw a rebalancing of France’s regions, working with various local bodies responsible for tourist infrastructures, industrialisation and urban development. Initially, the central government set the development goals as part of a national planning process and managed the related operations.

When economic growth slowed down after 1974 and many traditional industries, such as textiles and steel, were mired in recession, the central government trimmed its regional development goals in line with its decreased financial resources. Major development operations were dropped and the government’s actions were aimed primarily at facilitating the restructuring of old industrial heartlands through environmental rehabilitation, workforce retraining and the development of new activities. The government also had to deal with two worsening problems: rural flight and difficulties in certain urban areas. With the help of European Union subsidies, the central government increased support for agriculture and promoted the development of new activities such as forestry and tourism.

The decentralisation acts of 1982 and 1983 caused the central government to phase out its regional development action and hand most of its means of action over to local governments. France’s regions became fully-fledged territorial units with many new powers, especially with regard to development. The regions drew up Concerted Development Programmes (PACTs), in conjunction with the central government and as part of the national development plan. The other territorial units were also given greater powers in the decentralisation process. The 36,500 communes that make up France were given greater autonomy with regard to urban planning. They adopted zoning plans that defined the functions of different areas in each commune (agricultural zones, residential zones, greenbelts, etc.) and mayors were given the power to grant building permits. Departments were given powers with regard to land reform, such as reparcelling of farmland, and management of departmental highways. At the same time, the European Union has been enlarged and is seeking to reduce the disparities in development between regions. The European regional development policy instruments consist of three funds: the European Regional Development Fund (ERDF), the European Social Fund (ESF) and the European Agriculture Guidance and Guarantee Fund (EAGGF - Guidance Section). These funds focus on regions where development has fallen behind, where industry has declined and where rural areas are vulnerable. They are also aimed at facilitating efforts to reduce unemployment and help redundant workers find new jobs.

Sustainable development is an integral part of regional development policies aimed at redressing the balance of development between town and country by strengthening local communities forged by geography, history or economics. Regional development and environmental protection are no longer in opposition to each other. Environmental issues are still major elements in the regional development decision-making process, along with economic considerations.

Today, regional development policy is faced with new challenges arising from the enlargement of the European Union, economic internationalisation and decentralisation. These changes promote the opening up of France’s regions to international and European markets and enhance the leading role of France’s major cities, while involving all local communities in joint projects.