Let’s keep our head on: second thoughts on France‘s recovery plan

After using the lever of monetary policy, states have committed tax and budget policies to support the economy. This convergence of policies is a first in economic history.

As a global company, we see that all plans bring together three types of elements, the three "R": Remediation (plans of emergency), Resistance, Reforms. Let’s have a look at what Resistance and Reforms mean now.

"Resistance"
The key word here is "acceleration". For private companies, "time to market” is crucial. In the public sector it has become so, and yet much remains to be done: we know that half of the laws are never actually implemented. Though a series of important steps have already been taken, a huge acceleration is needed, for example by reducing RFP or financial control timeframes, so that every decision can play its counter-cyclical part.

We suggest in particular to accelerate the implementation of the 2012 Digital France Plan. Both realistic and ambitious, this plan contains potentially extremely effective actions for economic growth and job creation.

High speed fixed and mobile broadband can bring very significant job creation throughout the economy, for example by enabling the survival or creation of SMEs effectively connected to their customers and suppliers.

Economic research by public and private institutions make a very strong argument in favor of rapid broadband deployment: according to a 2009 World Bank study covering 120 countries from 1980 to 2006, an increase of 10 percentage point penetration of broadband has generated a surplus of growth of GDP per capita of 1.21 point! That's more than any other type of investment.

Reforms
Rising up the game in State and Administrative reforms to support long-term growth is not an option: when the morning hangover will come, States all around the world will be faced with massive debts and deficits-which means that only the leaner States may not have to raise taxes massively; meanwhile, those who will have delayed reforms on behalf of the global crisis will need to drain the recovering economy from new resources by taxing it, risking to slow the upturn.

Ongoing reforms in France largely overlook the changes that are currently affecting the way institutions and individuals interact and collaborate on projects. These changes can bring strong acceleration in the implementation of projects, and it is acceleration that we need most now.

In numerous polls, citizens and companies complain that the State and the various local authorities have arranged an administrative maze where they get lost when looking for the relevant information.

A number of key policies for the welfare of our citizens suffer from the fragmentation of responsibilities and tasks, rather than the lack of resources. This is true of housing policy, local economic development, vocational training policy, low income subsidies policy… So there is these days a harsh debate about organizational restructuring (creation of eight State regional headquarters, reducing the number of municipalities and departments ...).

Another approach could be to address the real problem, which is across-the-board collaboration between civil servants working on the same project (such a housing project).

Today, online work spaces go well beyond intranets and play a major role in overcoming silos environments. In the United States, 16 agencies and intelligence services now share information and files on a "wiki" A-Space "(collaboration tool online) called Intellipedia, and used by two-thirds of the agents. In Germany too, mayors will soon share a platform for online collaboration that will allow them to work together, to follow online training...

In the case of a “urban renewal project”, or a high speed train project, how many months are wasted just because the players can not find time to come together physically? Or because it is too cumbersome to share information?

We are facing a very deep crisis, which affects almost all sectors; but, as all crisis, it may well be an opportunity. Let’s take it!