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15 J. World Trade L. 124 (1981)
Public Intervention Strategies in the European Clothing Industries

handle is hein.kluwer/jwt0015 and id is 140 raw text is: Public Intervention Strategies in the European Clothing Industries JOSE DE LA TORRE THE multiple economic shocks which the world witnessed in the early 1970s brought about dramatic changes in competitive conditions for many European industries. Most countries reacted to the rising oil bill and the resulting payments disequilibrium by placing a major emphasis on the need for the external sector to absorb a significant part of the shock. As they too attempted to preserve employment and maintain a reasonable external balance, European governments turned to the urgent tasks of industrial adjustment and restructuring. Those sectors where comparative advantage existed or could be developed had to be supported at the expense of others; and where decline was evident, the cost of protection had to be weighed against the potential for social unrest. Furthermore, the appropriate policy instruments had to be chosen and applied to each sector judged worthy of assistance. This required the identification of key competitive strengths and weaknesses among the firms and segments in each sector and an understanding of the impact that diverse policies or programmes could have on the firm's behaviour and competitiveness. This article examines the record of governmental intervention in a very mature industry-clothing-in the six major EEC producing countries, namely, Belgium, Britain, France, West Germany, Italy and the Netherlands, over a period roughly covering the entire decade. We will first discuss the relative performance of each national industry, and then survey the major intervention strategies that each government pursued. While no causal links are entirely defensible, the evidence suggests the relative usefulness of different intervention tools and strategies in achieving national objectives. In conclusion, an interpretation of the Josi de la Torre is Associate Professor at the European Institute of Business Administration (INSEAD), Fontainebleau, France. This paper is part of a larger effort to examine changes in the competitiveness of the U.S. and European clothing industries, financed by Georgia State University, Atlanta, Georgia and INSEAD. The author is indebted to Mr. Michel Bacchetta, formerly Research Assistant at INSEAD, for conducting most of the field work and data analysis, both of which are fully reported in a working paper published by INSEAD in June 1979. 124 Copyright © 2007 by Kluwer Law International. All rights reserved. No claim asserted to original government works.

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