Download Washington Consensus

Washington
Consensus
Very Good overview in 12 minutes
BE SURE TO WATCH THIS
https://www.youtube.com/watch?v=X_uuIGfm-Wo
Basic Definition
• The Washington Consensus is a set of 10
economic policy prescriptions considered to
constitute the "standard" reform package
promoted for crisis-wracked developing
countries by Washington, D.C.–based
institutions such as the International
Monetary Fund (IMF), World Bank, and the US
2008
Treasury Department.
Williamson’s 10 points
1.
2.
Fiscal discipline
A redirection of public expenditure priorities toward fields offering
both high economic returns and the potential to improve income
distribution, such as primary health care, primary education, and
infrastructure
3. Tax reform (to lower marginal rates and broaden the tax base)
4. Interest rate liberalization
5. A competitive exchange rate
6. Trade liberalization
7. Liberalization of inflows of foreign direct investment
8. Privatization
9. Deregulation (to abolish barriers to entry and exit)
10. Secure property rights
Summarized as
•
•
•
•
Macro economic stability (pt. 1,2,3,4)
Floating Exchange rates (pt. 5)
Free trade (pt. 6 & 7)
Free Markets (pt. 8,9,10)
From Tejvan Pettinger, 2013
Does it work???
• On inspection, there appears nothing wrong with these
wonderful tenets.
• However, this is just on the surface, but if you take a peek
under the hood and ask questions and investigate - you
will realize that it very much depends on how these
tenets are interpreted and applied.
• These so-called tenets were incorporated very quickly much to the glee of the US Treasury and without any
voting or "consensus" at all - into other US economic
agency tentacles such as the WTO, IMF and World Bank.
And these tenets were not just simple mission
statements - suddenly they had become the rules.
Read more: http://www.digitaljournal.com/article/266389#ixzz3xKkFBu9b
Williamson Defends against NeoLiberals
• It is often used interchangeably with the
phrase “neoliberal policies.”
• Williamson’s response “I of course never
intended my term to imply policies like capital
account liberalization...monetarism, supplyside economics, or a minimal state (getting
the state out of welfare provision and income
redistribution)”
Three Issues
1. Not an ideology, need also to avoid crises
2. Incomplete or Neglected: Need to fully
address things continuously first and second
generation
3. Too narrow – need to concentrate more on
poverty reduction and distribution & less on
just higher GDP
Little broader review of
Washington Consensus
Op-Ed: The Washington Consensus: Sharks Feasting
By Bill Jencks Feb 5, 2009 in World
On inspection, there appears nothing wrong with these wonderful tenets. However, this is
just on the surface, but if you take a peek under the hood and ask questions and
investigate - you will realize that it very much depends on how these tenets are
interpreted and applied. Readmore: http://www.digitaljournal.com/article/266389#ixzz4WWVwd3zu
Consensus 2.0???
Dani Rodrik argues that there now exists an “Augmented” Washington
Consensus, which in addition to the items listed above, adds:
1. Corporate governance
2. Anti-corruption
3. Flexible labor markets
4. WTO agreements
5. Financial codes and standards
6. “Prudent” capital-account opening
7. Non-intermediate exchange rate regimes
8. Independent central banks/inflation targeting
9. Social safety nets
10. Targeted poverty reduction
Leftist Critique in
Kerala State of India
http://nickthorkelson.com/neolibintro.html
"The Comic Strip of Neoliberalism" is a series of informational comics which you
can read by clicking here http://nickthorkelson.com/neolibintro.html
Impacts???
Very Good overview in 12 minutes
https://www.youtube.com/watch?v=X_uuIGfm-Wo
INS 200 The Washington Consensus
https://www.youtube.com/watch?v=zDNWC5SlSsc
20 MINUTES – PRETTY GOOD BUT
NO IMAGES
Good Audio
Review of
Washington
Consensus
but quite long
https://www.youtube.com/watch?v=zOCUraWzf2Y
The opposition
• I thought these US agencies were meant
to help under-developed countries? So how
come China and India have done so well and
so quickly virtually on their own?
• There is only one answer to this.
BILL JENCKS FEB 5, 2009
Read more: http://www.digitaljournal.com/article/266389#ixzz4WWXSaL8t