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A shock wave of street riots is currently hitting France and may spill over to other countries. The start of street riots in France was triggered by an incident that occurred on 27 October when two teenagers were accidentally killed during a police sweep in an impoverished Paris suburb.
Since that unfortunate event France witnessed unabated street riots that spread to dozens of cities injuring a number of police officers and causing widespread damages. A state of emergency has been announced and may be extended up to spring next year.
Of course, restoring law and order is the first priority and the government was right to stress this. No doubt part of the cause for so much unrest is that common criminals and anarchists were using the opportunity to incite the rioters, inducing them to commit further acts of violence.
Yet the explosion of ethnic-minorities composed mainly of Arabic and African origins has taken the French government by surprise. Police were hit by streams of teenage protestors throwing rocks and torching cars, schools, community centres and street furniture. Initially the world looked on hoping that this will be an isolated incident but when it spread to a number of cities, some were wondering whether the riots signalled the start of broader European social upheaval.
It is curious to note that France, a country which regards itself as the birthplace of human rights and the sanctuary of a generous social model is proving to be unable to ensure decent living conditions for young French people in particular immigrants. In certain aspects, France has shown that it is capable of sweeping changes but this is predominantly in the private sector which is far more dynamic and far less constrained by rigid public sector controls.
Critics of France’s current social and economic model argue that the high levels of unemployment and inequality, coupled with declining job security which have characterized the nation since the late 1970s need to be addressed unless social unrest forces the government to react more forcibly against the rioters exacerbating the stand-off.
An estimated 10 million residents or 15 per cent of the French population are either second or third generation immigrants or children of immigrants. High unemployment is present in this social group. It is no secret that most of the rioters are immigrant students who probably cannot find adequate jobs. To make matters worst these live in segregated communities almost like ghettos where the strong perception is that they suffer from racial discrimination. Simultaneously, the participation of women of ethnic minorities is very low perhaps reflecting the shortage of unskilled jobs which in the past sustained this category. Another disadvantage is the inadequate subsidies provided through welfare programmes which are not helpful in promoting an improvement in the relations between the diverse ethnic groups in existing working-class communities.
The riots in France underpin the fragile welfare system that is currently in operation. With low levels of economic expansion the chances of adequate growth in job opportunities for the ethnic minorities seem more and more remote. Critics of the French social system lament that among the rich Western European and North American nations, France has the poorest record of job creation and has witnessed the most dramatic increase in unemployment during recent years. Furthermore some contend that the archaic welfare system hinders growth in sustainable jobs. Rising unemployment is linked with an expensive welfare regime that moves very slowly to identify job creation. So far the French government shows little appetite to regenerate the economy by providing more jobs for unskilled workers however as a result of the unrest some steps are intended to be taken by De Villepin’s administration to provide better education, increased job training and improved health programmes.
This reflects the sad reality that due to difficulties in finding jobs many immigrants are forced to work illegally in the underground economy.
But shutting the door to immigration is not the answer. France over the coming decade will need an ever larger inflow of workers to support its aging population. Regrettably the welfare system absorbs a disproportionate slice of taxes. Such taxes, including contributions by workers, account for 17 per cent of the French economy.
Influential newspaper Le Monde says the riots raise serious doubts about France's social model. After the riots, economists of all creeds and schools of thought offer various solutions to help France stimulate economic growth and generate sustainable jobs.
Definitely the restructuring of the existing stiff regulations of the welfare regime calls for less onerous regulation.
Most critically, this would also open up entrepreneurial and employment opportunities for those immigrants now suffering from a nightmare of closed options rather than enjoying a European dream.
The spectre of inflation and unbridled unemployment is suddenly reminding us of the economic crises and stock-exchange crashes of the post war years.
To make matters worst France has been registering a persistent imbalance between supply and demand in domestic consumer products which is pushing prices higher and worsening the budget deficit.
Can France afford not to sink into more debt in order to finance reconstruction programmes and to rectify social inequalities?
The answer is not easy given because France is also bound by the Stability and Growth pact to limit state borrowing and maintain budgets below the three per cent mark. Already it has been exceeding the three per cent limit for the past three years. But who is complaining in the well–heeled jobs?
Just keep in mind that roughly 60 per cent of French adults have secure, life-long jobs and generous pensions, and surely amongst this influential group one will find overwhelming support for the French model. Reality is that violence in the streets has shown that another important segment of the population needs immediate attention.
There are lessons to be learnt from the social unrest and unmistakeable pointers indicate that the rest of the community is suffering. Something must be done to alleviate the suffering by a sizeable percentage of the immigrant population.
Inevitably a just solution must be found and this has to respect the concept that effective welfare provision has grown hand in hand with democracy and it needs to provide an adequate safety net for all French citizens.
gmm@pkfmalta.com
The author is a partner in PKFMALTA
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