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The Washington Consensus as transnational policy paradigm: Its origins, trajectory and likely successor

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  • Sarah Babb

Abstract

This paper explores the origins and trajectory of the Washington Consensus - the ideas associated with the developing countries' move to free markets in the 1980s and 1990s. I argue that the Consensus was a transnational policy paradigm, shaped by both scholarly and political forces (Hall, 1993). At the core of the Consensus was the international financial institutions' practice of conditionality - making loans to governments in exchange for policy reforms. The Consensus was subsequently weakened by its own unintended consequences, by political forces both within Washington and worldwide and by intellectual changes in the field of economics. However, I argue that the Consensus has yet to encounter any serious rivals.

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  • Sarah Babb, 2013. "The Washington Consensus as transnational policy paradigm: Its origins, trajectory and likely successor," Review of International Political Economy, Taylor & Francis Journals, vol. 20(2), pages 268-297, April.
    • Handle: RePEc:taf:rripxx:v:20:y:2013:i:2:p:268-297
    DOI: 10.1080/09692290.2011.640435
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    References listed on IDEAS

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    1. Jeffrey M. Chwieroth, 2010. "Capital Ideas: The IMF and the Rise of Financial Liberalization," Economics Books, Princeton University Press, edition 1, number 9087.
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    3. John Williamson, 1994. "The Political Economy of Policy Reform," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 68, October.
    4. Serra, Narcis & Stiglitz, Joseph E. (ed.), 2008. "The Washington Consensus Reconsidered: Towards a New Global Governance," OUP Catalogue, Oxford University Press, number 9780199534098, Decembrie.
    5. Hirschman,Albert O., 1981. "Essays in Trespassing," Cambridge Books, Cambridge University Press, number 9780521282437.
    6. Ilene Grabel, 2010. "Promising Avenues, False Starts and Dead Ends: Global Governance and Development Finance in the Wake of the Crisis," Working Papers wp241, Political Economy Research Institute, University of Massachusetts at Amherst.
    7. Prasad, Monica, 2006. "The Politics of Free Markets," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226679013, September.
    8. repec:ucp:bkecon:9780226033655 is not listed on IDEAS
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