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Dirigisme is an economy in which the government exerts strong directive influence. While the term has occasionally been applied to centrally planned economies, where the state effectively controls both production and allocation of resources (in particular, to certain socialist economies where the means of production are assets of the state), it originally had neither of these meanings when applied to France, and generally designates a mainly capitalist economy with strong economic participation by government.
Most modern economies can be characterized as dirigiste to some degree – for instance, state economic action may be exercised through subsidizing research and developing new technologies, or through government procurement, especially military (i.e. a form of mixed economy). China is the clearest example to date.
Dirigisme is from the French. In English it is also "dirigism", although both spellings are used by the OED.
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