Dirigisme

noun (mass/uncountable)

/ˌdɪrɪˈʒiːzəm/

An economic policy in which the state takes a strong, directive role in guiding and shaping the economy through regulation, public sector enterprises, and centralised planning, rather than relying solely on market forces; India's economic model from 1947 to 1991 is often characterised as dirigiste.

✍️ Usage in a UPSC answer

India's post-Independence development model, anchored in the Mahalanobis strategy and successive Five-Year Plans, reflected a pronounced dirigisme in which the state commanded the "commanding heights" of the economy, until the structural compulsions of the 1991 balance-of-payments crisis forced a decisive turn towards liberalisation.

Synonyms

statisminterventionismétatismeconomic planningstate capitalismcentralism

Antonyms

laissez-fairefree-market economicsliberalismderegulation

🌱 Word Family

dirigisme (n), dirigiste (adj/n), dirigist (adj)

🔡 Root

French diriger = to direct, run; Latin dīrigere = to steer; dis- = apart + regere = to rule

📜 Etymology

From French dirigisme, from diriger ("to direct, to run"), from Latin dīrigere ("to direct, to steer"), from dis- ("apart") + regere ("to rule, to straighten"); first attested in English c. 1951.

🧠 Memory Hook

Think "DIRIGISME = the state DIRECTs" — share the Latin root with "direct" and "director": the government acts as economic DIRECTOR, steering the market by the hand.

🏛️ History & Culture 📖 Seen in: Planned Economic Development

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