Why did French economic growth lag behind England and the Netherlands during Jean-Baptiste Colbert’s career?

During the career of Jean-Baptiste Colbert, France faced significant obstacles that hindered its economic growth relative to England and the Netherlands. Colbert’s mercantilist policies, which sought to increase French power by reducing Dutch commercial hegemony, were met with resistance from traders and contractors who desired greater freedom of action.1

Several factors contributed to this lag:

• Investment Preferences: Cautious and thrifty individuals in France preferred traditional, secure outlets for their money—such as land, annuities, and moneylending—rather than investing in industry.1
• Capital Shortages: Colbert’s state-sponsored trading companies struggled to attract sufficient capital, leaving their operations precarious.1
• Global Economic Climate: The period was characterized by generally falling prices worldwide, which limited the success of his initiatives.1
• Tariff Warfare: Colbert’s protectionist tariffs against foreign goods prompted retaliatory tariffs from other nations, eventually contributing to the Dutch War (1672–78), which disrupted trade.12
• Structural Constraints: Unlike the more advanced financial systems developing in rivals like England, France remained burdened by a chaotic system of taxation and a lack of widespread entrepreneurial investment in industrial ventures.13