Short history of the washington consensus 1 oxford scholarship. The decalogue of consensus policies laid out by john williamson in his 1989 landmark paper became in the minds of advocates and pundits alike a. Catalogues or lists of new publications are available free of charge from the. What should the world bank think about the washington consensus. The term washington consensus, as williamson the father of the term conceived it, in 1989, was a set of reforms for economic development that he judged washington could agree were required in l. The washington consensus promotes the intervention of large, international institutions, such as the international monetary fund or the world bank, in order to accelerate economic growth and the. The center for international development at harvard university seeks to advance understanding of development challenges and offer viable solutions to problems of global poverty. Fischer spoke on the topic of the washington consensus, a term coined by williamson.
This paper argues that there is a substantial body of economic advice, roughly summarized in the washington consensus, that deserves to be endorsed across the political spectrum. The rise and fall of the washington consensus as a. The baker hypothesis national bureau of economic research. This was in the context of a region where almost all the countries had run large deficits that led to balance of payments crises and high inflation that hit mainly the poor because the rich could park their money abroad. The washington consensus proposed by john williamson has a very strong concern. Washington consensus peterson institute for international. In 1990, john williamson coined the term washington consensus to refer to the set of economic reforms that the u. The washington consensus a post keynesian perspective. The failure of the washington consensus, the need for a new. The first stage in answering these questions is a careful examination of the semantic issues involved. From the washington consensus towards a new global governance 3 narcis serra, shari spiegel, and joseph e. The washington consensus is a set of ten economic policy prescriptions considered to constitute the standard reform package promoted for crisiswracked developing countries by washington, d. John williamson is senior fellow at the peterson institute for international.
Institute for international economics, washington, dc. It discusses several differences between what marangos terms the washington consensus proper and shock therapy, such as the role of aid in financing budget deficits, voucher. Remember that the origin of the washington consensus was a list of policy prescriptions that would command general assent in the washington of george. Articles on moving beyond the washington consensus and redrafting the reform agenda by john williamson, guillermo ortiz, and trevor a. The washington consensus the washington consensus is the standard classical liberal economic package, consisting of free trade, gladstonian finance, and stable money. The three famous consensus the washington consensusthe washington consensus wc was first mentioned by john williamson 1989 to describe a set of ten specific economic policy prescriptions for developing world.
Consensus by williamson 1989, while labeled neoliberalism by others e. Proquest document link abstract john williamson was an obscure british economist until 1989 when he boiled down into 10 succinct points the consensus on economic reform for developing countries that prevailed among the main financial policymaking institutions in washington. Washington consensus free college essays, term paper. The term washington consensus, as williamson the father of the term. The washington consensus peterson institute for international. The rise and fall of the washington consensus as a paradigm. John williamson is best known for having coined the term washington. Washington consensus post washington consensus the new development economics after the.
Codified in john williamson s 1990 wellknown washington consensus, this advice inspired a wave of reforms in latin america. Since 1989, when economist john williamson first conceived of the economic and policy recommendations known as the washington consensus williamson, 1989, this consensus became generally accepted as the most effective model by which developing nations could spur growth. Despite his arguments he cannot contest that the washington consensus has a specific ideological and political background. Ns4053 winter term 20 the washington consensus ns4053 winter term 20 the washington consensus washington consensus i washington consensus originates with john williamson in the early 1990s reflective of the. Williamson argued that there was a consensus in the washington of the second half of 1989. Pdf the washington consensus a post keynesian perspective. Policies to facilitate the transfer of technology are impera. A short history of the washington consensus 14 john williamson 3. Institute for international economics, april 1990 and williamson, john. The debate around the term washington consensus was created in 1989 by john williamson williamson 2004b.
Adding to the confusion is the stance of john williamson, who first coined the phrase, wc, in the late 1980s. The term washington consensus, as williamson conceived it, was the lowest. The points of the washington consensus became widely implemented in development policy through the work of the internatinal monetary fund. In many ways the washington consensus wc1 is the image of western free market economics. In addition, the washington consensus may not represent a simple set of policy proposals. The washington consensus and latin americas left turn core. The coevolution of the washington consensus and the. The evolution of the antiwashington consensus debate. Those with sympathy toward the free market sometimes cite these radical connotations as their reason for avoiding the term neoliberalism. The term washington consensus, as williamson the father of the term conceived it. Short history of the washington consensus 1 oxford. A keynesian alternative to the washington consensus policies.
Codified in john williamson s 1990 wellknown washington consensus, this advice inspired a wave of reforms in latin america and subsaharan africa which fundamentally transformed the policy landscape in these developing areas. Goodbye washington consensus, hello washington confusion. In 1990, john williamson codified this litany of praise for east asian economic management into ten commandments known collectively as the washington consensus to guide policymaking in latin america. In regards to washington consensus, should international. The term was first used in 1989 by english economist john williamson. Washington consensus and post washington consensus.
Democracy and the washington consensus author links open overlay panel john williamson. Washington consensus harvard growth lab harvard university. One article from the world bank based on the world development report 20032004 on improving service delivery to the poor, and a joint imfworld bank article on what needs to be done to accelerate progress toward the millennium. Theresa williamson, john williamson s daughter, is a city planner and founding. The washington consensus as policy prescription for. During that time, he was the project director for the united nations highlevel panel on financing for development in 2001. The decalogue of consensus policies laid out by john williamson in his 1989 landmark paper became in the minds of advocates and pundits alike a manifesto for capitalist economic development. From washington through brussels and frankfurt to beijing, a series of centers of the economic policy stands for consensuses.
A free powerpoint ppt presentation displayed as a flash slide show on id. The discrete charm of the washington consensus core. He served as a senior fellow at the peterson institute for international economics from 1981 until his retirement in 2012. The washington consensus revisited one set of economic policy suggestions used to stimulate growth, particularly in latin america, is the washington consensus. Center for international development harvard kennedy school.
Undoubtedly, john williamson is famous for pioneering the phrase washington. Abstract this paper argues that there is a substantial body of economic advice, roughly summarized in the washington consensus, that deserves to be endorsed across the political spectrum. The author is indebted to colleagues at the institute for international economics for comments on a previous. Finding the right path, finance and development, september. It also requires a good government that promotes adam smiths popular opulence through promoting natural liberty by establishing laws of justice that guarantee free. My original paper williamson 1990 argued that the set of policy reforms that most of official washington diought would be good for latin american countries could. The washington consensus tried to list the main cornerstones of this policy attitude.
A keynesian alternative to the washington consensus. John williamson, the washington consensus, 1990 in the essay. The paradigmatic nature of the washington consensus is most clearly evident in the work of john williamson 1990,1993,1997, who coined the name and also set out a speci. Stabilize, privatize, and liberalize became the mantra of a generation of technocrats who cut their teeth in the developing world and of the political leaders they counseled. Ten policies covering the areas of macroeconomic discipline, microeconomic liberalization, and opening up the economy globalization were asserted to be widely. John williamson, the washington consensus, 1990 in the essay excerpted here, the economist john williamson coined term washington consensus. The concept and name of the washington consensus were first presented in 1989 by john williamson, an economist from the institute for international economics, an international economic think tank based in washington, d. Embracing ideals of free market capitalism, which included open trade. Williamson used the term to summarize policy advice from washington based institutions such as the us treasury, the imf and the world bank, that were believed to be necessary for the recovery of countries in latin.
He both disassociates it from neoliberalism as such and considers that differences between the wc and pwc are minor and. Consensus believe that free market is the ultimate solution to gain economic development. The term washington consensus, as williamson conceived it, was the lowest common denominator of the reforms that he judged washington could agree were required in latin america. By continuing to use our website, you are agreeing to our use of cookies.
John williamson 1990 used the term to describe the neoliberal. The washington consensus was formed, in 1989, by john williamson to describe the consensus. The coevolution of the washington consensus and the economic. The papers presented at the conference were subsequently edited by williamson 1990, published in a book and as a result the term washington consensus became wellknown. Mutation of meanings the best account of how the washington consensus was coined and formulated is given by john williamson himself. Senior fellow, institute for international economics. Introductionthe term washington consensus was first used by john williamson in his 1989 paper to describe a list of ten reforms which were regarded as necessary for developing countries especially latin american states to catch up to the advanced. A short history of the washington consensus john williamson follow this and additional works at. Pdf democracy and the washington consensus semantic scholar. The washington consensus, initially developed in 1989, as explained by his author john williamson was not meant to become a policy viewed as a universal growth and development prescription but it was his way of listing ten policies that were held in the city of washington aimed to set off the economic growth in the area of latin america. The washington consensus advocates the following policy stances. Pdf washington, brussels, and beijing consensus balazs.
The ten commandments of the washington consensus balance of. The term washington consensus, as williamson the father of the term conceived it, in 1989, was a set of reforms for economic development that he judged washington. Download free pdf politics of neoliberal development. In 1989 john williamson, an economist from the world bank, set the standard for a new economic era in the paper called what washington means by policy reform williamson, 1990. This chapter traces the origin of the term washington consensus to a paper written for a conference in 1989 that aimed to explore how the set of ideas accepted as a basis for policy in developing countries had changed.
In particular, we are pleased that recent research by the imf now recognizes, albeit some seven decades after john maynard keynes, that unrestrained flows of liquid. Democracy and the washington consensus john williamson institute for international economics, washington, dc summary. This short comment on the article by john marangos welcomes the authors care in distinguishing alternative concepts of the washington consensus and distinguishing them in turn from the idea of shock therapy. Williamson used the term to summarize commonly shared themes among policy advice by washington based institutions at the time. Washington consensus world bank document world bank group.
Economies in crisis due to the existence of barriers to the free play of market forces. Why has the washington consensus not expanded to cover. Why has the washington consensus not expanded to cover middle. It is clearly a backbone on which a building is built. Democracy and the washington consensus sciencedirect.
Aug 14, 2012 in many ways the washington consensus wc is the image of western free market economics. It is hard to overemphasize the practical and ideological importance of the washington consensus in latin america. It is quoted in full in box 1 to ensure that we are on the same page with the original content as envisaged by the author. Israel, delivers the keynote address at a festschrift held in honor of john williamson at the peterson institute on november 1, 2012. The washington consensus as policy prescription for development john williamson senior fellow, institute for international economics a lecture in the series practitioners of development delivered at the world bank on january, 2004. The ten commandments of the washington consensus 1. The strange history of the washington consensus created date. G w c h w c dani rodrik harvard university january 2006. As a matter of fact, the washington consensus was initially what most. I labeled this reform agenda the washington consensus, never dreaming that i.
Washington consensus the term was first coined by john williamson in 1989, an economist from the institute for international economics in washington, d. The phrase washington consensus has become a familiar term in. Embracing ideals of free market capitalism, which included open trade policies, privatization. Ten economic policies were drawn up as the basic core. Pdf the term washington consensus, as williamson conceived it, was the lowest common denominator of the. Such endorsement would still leave a series of major economic issues, most notably the tradeoff between efficiency and equity, to be determined by the outcome of the political process. Democracy and the washington consensus visionary values.
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