Topic: The new Washington Consensus
Link: The new Washington Consensus | Bruegel Excerpt: "John Williamson coined the term Washington Consensus in 1989 as he examined the extent to which the old ideas of development economics that had governed Latin American economic policy since the 1950s were being swept aside by the set of ideas that had long been accepted as appropriate within the OECD. John Williamson provided a list of ten policies that more or less everyone in Washington agreed were needed more or less everywhere in Latin America: Fiscal Discipline. Reordering Public Expenditure Priorities. Tax Reform. Liberalizing Interest Rates. A Competitive Exchange Rate. Trade Liberalization. Liberalization of Inward Foreign Direct Investment. Privatization Deregulation Property Rights. Jonathan D. Ostry, Prakash Loungani, and Davide Furceri write that the neoliberal agenda rests on two main planks. The first is increased competition – achieved through deregulation and the opening up of domestic...