Dirigisme

Definition

Dirigisme is an economic system where the state exerts strong directive influence over investment. It's often associated with economies where the government controls and plans key aspects of the economy.

Analogy

Dirigisme is like a school project where the teacher has a very specific vision for what they want. They give you detailed instructions and closely monitor your progress, rather than letting you freely decide how to approach it.

Related terms

Command Economy: An economic system in which production, investment, prices, and incomes are determined centrally by a government.

Mixed Economy: An economic system combining private and public enterprise.

Economic Planning: A resource allocation mechanism based on a computational procedure for solving a constrained maximization problem with an iterative process for obtaining its solution. Organized by a government to improve economic performance.