Viewing the development of French trade and manufacturing between 1650 and 1820, Jeff Horn underscores their great success based largely on overseas markets. His evidence supports the view of Friedrich Engels and Perry Anderson that capitalism developed within the pores of the Old Regime. Yet Horn attempts to deny the leading role of the bourgeoisie in this advance. He claims that it was through the Old Regime system of economic privileges rather than the agency of bourgeois capital accumulation that such (...) progress was made. This article rejects Horn’s exclusive preoccupation with the positive economic role of the privileges granted by the state. It reasserts the importance of the agency of the bourgeoisie in furthering economic development. Moreover, it contends that for all the economic gains made by the system of state privileges, such privileges were more than offset by the weight of rents on the peasantry and to the benefit of the nobility and Church imposed by this same regime of privileges. The distorted development that privileges imposed on economic and social life became an important factor behind the outbreak of the Revolution. (shrink)