[In-Depth Look] Colbert 2.0 and Reshoring

Kim Young-woo, Senior Expert at the Win-Win Growth Committee.

The mercantilist Colbert (1619?1683) has reappeared. It has been a full 330 years. In 2013, the French government developed a diagnostic program to promote reshoring of manufacturing and named it ‘Colbert 2.0.’ During the reign of Louis XIV, who famously said “the king is the state,” Colbert argued that to strengthen national power, trade must be promoted and industry encouraged. His name, representing mercantilism, has reemerged to promote the return of manufacturing to the domestic market.

In 17th-century Europe, preserving territory from the threat of war was the highest priority of the state. To build a wealthy and strong nation, it was believed necessary to establish a strong monarchy and exercise economic intervention and control. As the financial minister, Colbert trained technicians, established royal manufactories, and supervised production, management, and distribution of goods. Thanks to these efforts, France became a major power in Europe.

After the global economic crisis, France enacted the Economic Modernization Act in 2008 to strengthen the competitiveness of its domestic industries. Although all industries developed evenly based on agriculture, the country faced growing trade deficits due to massive energy imports and the relocation of companies overseas. Finally, in 2012, a policy report aimed at enhancing domestic industrial competitiveness was released, and notable initiatives such as startup support and reshoring policies were created at that time.

Colbert 2.0 is a software program developed by the government to encourage French companies abroad to return home. It consists of 48 questions that calculate not only labor costs, logistics, transportation, and energy prices but also government subsidies available depending on the region of relocation. After the preliminary diagnosis, it provides potential analysis for 22 industrial complexes, suggests relocation routes, supports factory construction (ARI), and connects companies with institutions for project analysis.

When announcing this program, the French government declared the “end of the low-cost era.” They judged that the importance of low wages as a competitive advantage was diminishing. Why did France focus on reshoring? First, large-scale production facilities overseas cannot keep up with rapidly changing consumer trends. Second, the offshoring strategy, which was justified by cost reduction, is no longer valid due to factory automation. Third, as part of industrial policy, the national brand ‘MIF (made in France)’ has been utilized.

In October 2013, when Colbert 2.0 was announced, the French government planned the MIF exhibition showcasing only French-made products, and last year it was a huge success with over 500 companies participating and 80,000 visitors. At that time, the media stated, “We no longer imagine French people wearing berets and carrying baguettes,” defining it as a “rediscovery of attractive French products.”

According to the European Union, over the past four years, about 40 French companies have reshored, the highest number among member countries. The reasons cited for French companies returning home include logistics, image, quality, and synergy effects. Furthermore, large corporations such as Renault automobiles (Spain), Michelin tires (Germany), and Saint-Gobain advanced glass (Germany) have returned, creating tens of thousands of jobs and receiving positive evaluations for success.

Colbert left a famous saying that to collect more taxes, “one must pluck the goose’s feathers little by little so as not to cause pain,” yet he was popular even then. He introduced advanced industries like glassmaking, protected inventors, and prohibited the emigration of French technicians. In particular, he was diligent in building roads and canals nationwide, actively engaging in “feather sharing.” Domestically, reshoring is also treated as one of the core projects. It is a crucial time when verification with expertise like Colbert 2.0 is urgently needed.

Kim Young-woo, Senior Expert, Win-Win Growth Committee

This content was produced with the assistance of AI translation services.