During that time, he was the project director for the united nations highlevel panel on financing for development in 2001. The term was first used in 1989 by english economist john williamson. The decalogue of consensus policies laid out by john williamson in his 1989 landmark. The first written usage was in my background paper for a conference that the institute for international economics convened in order to examine the extent to which the old ideas of development economics that. 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 economies. It is quoted in full in box 1, so we are on the same page with the original content as envisaged by the author. The story of the washington consensus dates back to 1989, when the press in the united states. Washington consensus 1,023,263,195 visitors served the washington consensus is a phrase initially coined in 1989 by john williamson to describe a relatively specific set of ten economic policy prescriptions that he considered to constitute a standard. The socalled washington consensus, which dictated most of the solutions.
Aug 01, 1993 introduction in mid 1989 i prepared a list of the principal economic reforms that were being urged on latin american countries by the powersthatbe in washington see williamson, 1990. 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. 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 post keynesian retort to the after washington consensus. 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. The name washington consensus was coined by economist john williamson in 1989 he intended it to refer to the lowest common denominator of policy advice being addressed by the washington based institutions to latin american countries as of 1989. The coevolution of the washington consensus and the economic.
This paper argues that there is a substantial body of economic advice, roughly summarized in the washington consensus, that deserves to. Misunderstanding the poor by the brightest wing thye woo. Insofar as i was an accurate reporter of the washington scene in 1989, there was an initial identity between my original concept and this second alternative. Washington consensus world bank document world bank group. Ten years ago i invented the term washington consensus to refer to the lowest common denominator of policy advice being addressed by the washington based institutions to latin american countries as of 1989 williamson 1990. The term washington consensus was coined in 1989 by john. As the washington consensus did not contain all the answers to the policy questions in 1989 and as circumstances have changes so of course we need to go beyond it williamson, 2008a, p. Edwards 1989, krueger 1978, lal 1985, lin 1989, and sachs 1985. See also williamson 2004 for his views on the various interpretations given to his recommendations.
Washington institutions, which were not as nuanced as williamsons original or. This was in the context of a region where almost all the countries. Williamson argued that there was a consensus in the washington of the second half of 1989. In 1989, economist john williamson coined the term washington consensus. In a background paper, williamson sets the ground for the conference proceedings by specifying what is meant by economic adjustment ch. So then in 1989, the baker plan was complemented by an official e. Washington consensus restarting growth and reform in latin america.
Pdf democracy and the washington consensus semantic. The strange history of the washington consensus economic. Pdf the washington consensus a post keynesian perspective. On the other hand, the process the concertacion democratica official coalition started in chile in 1990 proves the identity between market economy and rule of law. A short history of the washington consensus john williamson senior fellow, institute for international economics paper commissioned by fundacion cidob for a conference from the washington consensus towards a new global governance, barcelona, september 2425, 2004. 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.
Pdf washington, brussels, and beijing consensus balazs. 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. The rise and fall of the washington consensus as a. Of course, development was the main objective of the. The second possible alternative interpretation is that the washington consensus represents the policies collectively pursued by the washington based institutions that dispense. Box 1 the origin of the washington consensus the story of the washington consensus dates back to 1989. The washington consensus as transnational policy paradigm.
The washington consensus as a transnational policy paradigm at the end of the 1980s, a participant at a conference on the latin ameri. The original formulation of the washington consensus, propounded in 1990 by john williamson, was largely concerned with macroeconomics and financial. Avoidance of large fiscal deficits relative to gdp. My impression is that the institution of private property was somewhat more securely entrenched in east asia than in most of the rest of the developing world. It is hard to overemphasize the practical and ideological importance of the washington consensus in latin america.
Washington consensus peterson institute for international. He identifies ten policy areas in which a fairly broad consensus might exist on what countries in latin america and elsewhere should do the socalled washington consensus. 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 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. 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. Chinas sui generis plus oxymoron its justification. The growth rates during 19902001 for subsaharan africa 0. The ten commandments of the washington consensus 1. Remember that the origin of the washington consensus was a list of policy prescriptions that would command general assent in the washington of george. Williamson is best known for having coined the term washington consensus to describe a set of.
The term washington consensus was coined by john williamson. Washington consensus 10 point policy prescription paper tyari. 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. A short history of the washington consensus smu scholar. Washington consensus represents the policies collectively. Dec 22, 2017 essentially, the washington consensus advocates, free trade, floating exchange rates, free markets and macroeconomic stability. A keynesian alternative to the washington consensus policies. The washington consensus as policy prescription for development. Williamson born june 7, 1937, hereford, england is a britishborn economist who coined the term washington consensus.
So much for the content of my version of the washington consensus. In 1989, john williamson outlined a set of desirable economic reforms targeted at developing countries that he deemed broadly supported by policymakers in washington. The washington consensus as policy prescription for. Washington consensus and latin america integration. 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. From the washington consensus to the chile consensus. Washington consensus reforms and economic performance. The prescriptions encompassed policies in such areas as macroeconomic stabilization. Washington consensus the term was first coined by john williamson in 1989, an economist from the institute for international economics in washington, d. The ten principles originally stated by john williamson in 1989, includes ten sets of relatively specific policy recommendations. 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 the international financial organizations could agree were required in latin america. When economist john williamson coined the term washington consensus in 1989, he was referring to a set of ten market oriented policies that were popular among washington based policy. Oct 26, 2020 washington consensus was coined by john williamson in 1989 to refer to the policy advice given by the washington based institutions such as imf, world bank, us treasury, to latin american countries. In 1990, john williamson codified this litany of praise for east asian economic management into ten commandments known collectively as the washington consensus to.
Yet the term and its meanings have also interacted with a broader discourse on. Introduction he term washington consensus was coined in 1989. It acquires the one size fits all rule of the international monetary fund of those ages. Pdf democracy and the washington consensus semantic scholar. In 1990, john williamson coined the term washington consensus to refer to the set of economic reforms that the u. The theory of development promoted by the washington consensus, also called neoliberalism, argued globalization would promote both rapid growth as. 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. Embracing ideals of freemarket capitalism, which included open trade policies, privatization. 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 coevolution of the washington consensus and the. The first written usage was in my background paper for a conference that the institute for international economics convened in order to examine the extent to. Theresa williamson, john williamson s daughter, is a city planner and founding. Washington consensus definition and criticism economics help. Box 1 the origin of the washington consensus the story of the washington consensus dates back to 1989, when the press in the united states.
The washington consensus was created in 1989 by john williamson. 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. The case of the washington consensus suggests that policy paradigms have different dynamics in different types of institutional settings. 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. 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. The washington consensus was made to be the baseline of directions for countries, who are in need of assistance from international economic entities, for example the international monetary fund and the world bank. He served as a senior fellow at the peterson institute for international economics from 1981 until his retirement in 2012. We will call the success of this economicinstitutional reform the chile consensus. The ten commandments of the washington consensus balance of. Washington consensus reforms and economic performance in sub. Williamson used the term to summarize commonly shared themes among policy advice by washington based institutions at the time. Washington consensus harvard growth lab harvard university. The washington consensus peterson institute for international.
The post washington consensus goes further in detailing the nature of the failures of the washington consensus. The washington consensus wc was first mentioned by john williamson 1989 to describe a set of ten specific economic po licy prescriptions for developing world. Pdf the term washington consensus, as williamson conceived it, was the lowest common. Democracy and the washington consensus john williamson institute for international economics, washington, dc summary. However, the revival of the outwardoriented, exportled development strategy has not provided growth rates similar to the postwar period of domestic. 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. The washington consensus as i originally formulated it was not written as a policy prescription for development.
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