{"id":115544,"date":"2021-06-29T20:39:48","date_gmt":"2021-06-29T15:09:48","guid":{"rendered":"https:\/\/blog.forumias.com\/?page_id=115544"},"modified":"2021-10-19T16:55:23","modified_gmt":"2021-10-19T11:25:23","slug":"washington-consensus","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/washington-consensus\/","title":{"rendered":"Washington Consensus"},"content":{"rendered":"<p><span data-contrast=\"auto\"><strong>Definition<\/strong>: The Washington Consensus refers to a set of broadly free market economic ideas, supported by prominent economists and international organizations, such as the IMF, the World Bank, the EU and the US. It was drawn from the advice of John Williamson. <\/span><\/p>\n<p><span data-contrast=\"auto\">It <strong>minimized the state\u2019s role<\/strong> in the economy and pushed an aggressive free-market agenda of deregulation, privatization, and trade liberalization<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\"><br \/>\n<\/span><\/p>\n<p>It paved the way for the <strong>domination of the Western-style capitalism<\/strong>. It was aggressively promoted by the International Monetary Fund and the World Bank.<\/p>\n<p><span data-contrast=\"auto\"><strong>Aim<\/strong>: To advocate\u00a0free trade, floating exchange rates, free markets and macroeconomic stability.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\"><strong>Importance<\/strong>:\u00a0To determine policy towards economic development in Latin America, South East Asia and other countries.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><strong>Ten principles\u00a0of Washington Consensus\u00a0<\/strong><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" aria-setsize=\"-1\" data-aria-posinset=\"17\" data-aria-level=\"1\"><span data-contrast=\"auto\">Low government borrowing<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" aria-setsize=\"-1\" data-aria-posinset=\"18\" data-aria-level=\"1\"><span data-contrast=\"auto\">Redirection of public spending from subsidies toward broad-based provision of key pro-growth<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" aria-setsize=\"-1\" data-aria-posinset=\"19\" data-aria-level=\"1\"><span data-contrast=\"auto\">Tax reform<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" aria-setsize=\"-1\" data-aria-posinset=\"20\" data-aria-level=\"1\"><span data-contrast=\"auto\">Positive Interest rates<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" aria-setsize=\"-1\" data-aria-posinset=\"21\" data-aria-level=\"1\"><span data-contrast=\"auto\">Competitive exchange rates;<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" aria-setsize=\"-1\" data-aria-posinset=\"22\" data-aria-level=\"1\"><span data-contrast=\"auto\">Trade liberalization<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" aria-setsize=\"-1\" data-aria-posinset=\"23\" data-aria-level=\"1\"><span data-contrast=\"auto\">Liberalization of inward foreign direct investment;<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" aria-setsize=\"-1\" data-aria-posinset=\"24\" data-aria-level=\"1\"><span data-contrast=\"auto\">Privatization of state enterprises;<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" aria-setsize=\"-1\" data-aria-posinset=\"25\" data-aria-level=\"1\"><span data-contrast=\"auto\">Deregulation<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" aria-setsize=\"-1\" data-aria-posinset=\"26\" data-aria-level=\"1\"><span data-contrast=\"auto\">Legal security for property rights.<\/span><\/li>\n<\/ul>\n<p>It defined the rules of the game for the global economy for almost a half-century. But Currently, this system is under fire for exacerbating inequalities and perpetuating the Global South\u2019s subordination to the North.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Definition: The Washington Consensus refers to a set of broadly free market economic ideas, supported by prominent economists and international organizations, such as the IMF, the World Bank, the EU and the US. It was drawn from the advice of John Williamson. It minimized the state\u2019s role in the economy and pushed an aggressive free-market&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/washington-consensus\/\">Continue reading <span class=\"screen-reader-text\">Washington Consensus<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-115544","page","type-page","status-publish","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/115544","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=115544"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/115544\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=115544"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}