The Washington Consensus: Assessing a Damaged Brand - Working Paper 213
AbstractIn this paper we analyze the Washington Consensus, which at its original formulation reflected views not only from Washington but also from Latin America. We trace the life of the Consensus from a Latin American perspective in terms of evolving economic development paradigms. We document the extensive implementation of Consensus-style reforms in the region as well as the mismatch between reformers’ expectations and actual outcomes, in terms of growth, poverty reduction, and inequality. We then present an assessment of what went wrong with the Washington Consensus-style reform agenda, using a taxonomy of views that put the blame, alternatively, on (i) shortfalls in the implementation of reforms combined with impatience regarding their expected effects; (ii) fundamental flaws—in either the design, sequencing, or basic premises of the reform agenda; and (iii) incompleteness of the agenda that left out crucial reform needs, such as volatility, technological innovation, institutional change and inequality.
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Bibliographic InfoPaper provided by Center for Global Development in its series Working Papers with number 213.
Length: 40 pages
Date of creation: Jun 2010
Date of revision:
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Web page: http://www.cgdev.org
Stabilization; reform; financial markets; macroeconomic policy; government; history of economic thought; institutions; Latin America; Caribbean;
Find related papers by JEL classification:
- E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
- P11 - Economic Systems - - Capitalist Systems - - - Planning, Coordination, and Reform
- B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian
- N16 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Latin America; Caribbean
- N26 - Economic History - - Financial Markets and Institutions - - - Latin America; Caribbean
- N46 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Latin America; Caribbean
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-03 (All new papers)
- NEP-MAC-2010-07-03 (Macroeconomics)
- NEP-PKE-2010-07-03 (Post Keynesian Economics)
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