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Le Grand Paris. How would this project generate an economic growth?

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par Nicolas Saouaf
Reims management school - Master 2011
  

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INTRODUCTION

General context

On June 27, 2007 at the inauguration of Roissy 3, President Nicolas Sarkozy gave a speech in which he places a clear message: "the state can do without having a vision and strategy for the region economically most powerful in Europe, which generates 28% of the national wealth of our country? I do not think so. The president therefore wishes to mobilize the various jurisdictions to define a development plan for the Ile-de-France.

On 1 December 2009, by 299 votes against 216 MPs adopted the bill on the Greater Paris1, this law has resulted in the creation of a League of Greater Paris (its mission is to build a metro system around Paris). This law has marked the real start of construction of this project.

Indeed this can be taken as a good example of government expenditure. In France, public investments are done by three institutions: Central administration (the state itself), local collectivities (regions, departments, cities), and health care security. These three administrations realized investment expenses as schools, hospitals, airports, or roads in order to provide or improve to the citizens. This approach is considered as part of the Keynesian in order to reflate the economy of the country (by creating some works, and facilitating the economic environment because of the new construction). The French governments have since the 50's always used these economic theories in order to grow the GDP during «les 30 glorieuses», or to maintain a growth during les «20 piteuses» since the 80's. One of the main purpose of these investments is to promote the business of the companies.

One more time, through the Grand Paris project, the French government uses the Keynesian theory in order to improve the French economic competitiveness. Indeed, the French government wants to renovate the infrastructures of Paris Ile-de France region. To do so, on September 17, 2007 President Sarkozy called ten agencies Architecture and urban development will be assigned to work on the overall development of Greater Paris. They have been asked to think of the new Paris in terms of architecture, economics (green business), and infrastructures (public transports), in order to have a megalopolis ready to compete with the others main cities in the world (New York City, London, Tokyo, Beijing or Sidney). Ten architecture agencies have answered to this demand, each proposing a project to the region.

To analyze this topic, we will use the following problematic: How would this Grand Paris poject
generate an economic growth? How a public investment can promote the trade of Francilienne crosses

to the ten studies made? What are the tools which will permit to generate an economic growth? What aspects have been forgotten in the Grand Paris project plan?

Indeed it will be interesting to analyze beside the political speech, what could the Greater Paris project brings to the Paris Ile de France economy.

To analyze this question, we will first understand what the actual situation of the agglomeration is; in a second time we will analyze why the Greater Paris is essential for the future of the region; in a third time will analyze in which sense such a project can create an economic growth; in a fourth time we will analyze the different projects proposed; and to finish we will analyze our research with a qualitative approach.

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