Working draft of a paper prepared for the imf conference on second generation reforms, washington, d. A decade later some feel that previous consensus is lost. The failure of the washington consensus, the need for a. Dani rodrik1 harvard university january 2006 introduction life used to be relatively simple for the peddlers of policy advice in the tropics. The point of departure for this book is the washington consensusthe set of views about effective development strategies that have come to be associated with. Learning from a decade of reform, journal of economic literature, american economic association, vol. Rodrik, professor of international political economy at harvard university, in his paper goodbye washington consensus, hello washington confusion.
Adam smith and karl marx meet, among others, robert wade, amartya sen and jeffrey sachs. Dani rodrik1 harvard university january 2006 introduction life. Observing the endless list of policy follies to which poor nations had succumbed, any well. The term washington consensus usually refers to the level of agreement between the international monetary fund imf, world bank, and u.
Goodbye washington consensus goodbye washington consensus. The conventional package of reforms was to obsessed with deadweightloss triangles and reaping efficiency. The term was first used in 1989 by english economist john. The ten commandments of the washington consensus balance of. Stabilization, reform, financial markets, macroeconomic policy, government, history of economic thought, institutions, latin america, caribbean. Learning from a decade of reform proponents and critics. Many critiques and debates have been addressed towards the washington. Goodbye washington consensus, hello washington confusion 2006. The making of a global brand name in fairness to williamson, it is important to stress that he was the innocent victim of his useful summarys success. The ten commandments of the washington consensus 1. Goodbye washington consensus, hello washington confusion a. 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.
Democracy and the washington consensus john williamson institute for international economics, washington, dc summary. The false promises of the second washington consensus. 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. Goodbye washington consensus, hello washington confusion. They control voting power and they overwhelm the decisionmaking. Published in volume 44, issue 4, pages 973987 of journal of economic literature, december 2006, abstract. Essentially, the washington consensus advocates, free trade, floating exchange rates, free markets and macroeconomic stability. The challenge then is to incorporate a broader range of the views of the developing countrtes and the borrower countrtes. View notes goodbye washington consensus from ps 061 at tufts university. In this paper authors argue that the main determinants of differences in prosperity across countries are differences in economic institutions. First, there was an unexpectedly deep and prolonged collapse in output in countries mak.
Washington consensus, a set of economic policy recommendations for developing countries, and latin america in particular, that became popular during the 1980s. Federal reserve board lessons from emerging market. Creditor countnes, specifically the g7, dominate the imf. Rodrik 2006 goodbye washington consensus hello washington. Pdf the role of institutions in growth and development. The washington consensus as policy prescription for. 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.
Tracing the life of the consensus from a latin american perspective in terms of evolving economic development paradigms, they document the extensive implementation of. The record here is howlearning from reform summarizes the surprises of the 1990s. Other articles where postwashington consensus is discussed. Of course, development was the main objective of the. The debate now is not over whether the washington consensus is dead or alive, but over what will replace it. An important marker in this intellectual terrain is the world banks economic growth in the 1990s learning from a decade of reform 2005.
Imagining post geneva consensus labour law for post washington consensus development. Download citation goodbye washington consensus, hello washington confusion. Learning from a decade of reform download download pdf. Return to article details goodbye washington consensus, hello washington confusion. It shows how debates around development have been structured by different readings of the roles played by markets, empire, nature and difference in. G w c h w c dani rodrik harvard university january 2006. Towards an elaborated theory of inclusive development. To solve the problem of development will entail reforming these institutions. 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 washington consensus refers to a set of broadly free market economic ideas, supported by prominent economists and international organisations, such as the imf, the world bank, the eu and the us.
The washington consensus as i originally formulated it was not written as a policy prescription for development. The record here is how learning from reform summarizes the surprises of the 1990s. Surprises of 1990s insights of learning from reform goodbye washington consensus, hello washington confusion. Unfortunately, this is difficult because economic institutions are collective choices that are the outcome of a political process. First, there was an unexpectedly deep and prolonged collapse in output in countries.
Williamson went to great lengths to qualify what he meant when he framed the washington con. Neoliberalism and the washington consensus the distributed. The development reader brings together fiftyfour key readings on development history, theory and policy. Innovative regulation as a response to globalization, ilo geneva, july 2009.
The authors analyze the washington consensus, which at its original formulation reflected views not only from washington, but also from latin america. Economic liberalization via imf structural adjustment. The washington consensus is a set of ten economic policy prescriptions considered to. From the washington consensus towards a new global governance 3 narcis serra, shari spiegel, and joseph e. A decade later whatever consensus there might have been, appears lost. A bibliometric analysis of 20 years of globalization research. Nonetheless, williamsons work on the washington consensus is prob. Rodrik may be right to say goodbye washington consensus, hello washington confusion, but that doesnt mean that governments ought to run budget deficits, hike their tariffs, and nationalize industries. Several reading on washington consenus are listed below.
Learning from a decade of reform, journal of economic literature, vol. Washington consensus, financial liberalization, macroeconomic. A short history of the washington consensus 14 john williamson 3. If there is any sort of new consensus in washington it. The conventional package of reforms was to obsessed with. Imagining post geneva consensus labour law for post. Official pdf, 43 pages world bank documents world bank group.
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