what was the main point of the washington consensus? course hero

What was the purpose of the Washington Consensus?

A British economist named John Williamson coined the term Washington Consensus in 1989. The ideas were intended to help developing countries that faced economic crises. In summary, The Washington Consensus recommended structural reforms that increased the role of market forces in exchange for immediate financial help.

What is Washington Consensus Summary?

The Washington Consensus is a set of ten economic policy prescriptions considered to constitute the "standard" reform package promoted for crisis-wracked developing countries by Washington, D.C.-based institutions such as the International Monetary Fund (IMF), World Bank and United States Department of the Treasury.

What are the main elements and criticism of the Washington Consensus?

The Washington Consensus purists insisted on the importance of stabilizing exchange rates in times of crisis through public budget cuts, higher taxes and interest rates and other recessive measures. Their opponents criticized such policies, arguing that they would lead to recession (Naim, 1999).

What are the 10 points of Washington Consensus?

10 Elements of Washington ConsensusFiscal Adjustment: ... Tax Reforms: ... Deregulation: ... Trade Liberalisation: ... Competitive Exchange Rate: ... Privatisation: ... Removal of Barriers to Foreign Investment: ... Financial Reforms:More items...

What is the Washington Consensus quizlet?

washington consensus. This is the set of 10 policies that the US government and the international financial institutions based in the US capital believed were necessary elements of "first stage policy reform" that all countries should adopt to increase economic growth.

What is meant by the Washington Consensus Mcq?

What is meant by the 'Washington Consensus'? a) The consensus in Washington about matters of foreign policy.

Which of the following is true of the Washington Consensus?

Which of the following is true of the Washington Consensus? It advocated the superiority of private ownership over state ownership. A fundamental aspect of ___ is that it effectively conducts global business by providing an individual the right to freedom of expression and organization.

What is the advantage of Washington Consensus?

The positive implications of Washington Consensus relate to creation of platform for growth creating an effective economic climate and ensuring the security of economic transactions.

What are the main objective of the Bretton Woods system and the Washington Consensus?

Near the end of World War II representatives of the victorious allies met in Bretton Woods, New Hampshire with the purpose of formulating a coordinated strategy for rebuilding the war-torn nations of Europe and stabilizing the global system of currency exchange rates.

What are the main features of the Washington Consensus?

The main Washington Consensus policies include maintaining fiscal discipline, reordering public spending priorities (from subsidies to health and education expenditures), reforming tax policy, allowing the market to determine interest rates, maintaining a competitive exchange rate, liberalizing trade, permitting inward ...

Was the Washington Consensus successful?

The Washington Consensus didn't just create enduring policies at the national level. It also passed its legacy on to the world's most influential international organizations.

What is the Washington Consensus?

The term Washington Consensus usually refers to the level of agreement between the International Monetary Fund (IMF), World Bank, and U.S. Department of the Treasury on those policy recommendations. All shared the view, typically labelled neoliberal, that the operation of the free market and the reduction of state involvement were crucial ...

When did John Williamson use the Washington Consensus?

When the British economist John Williamson, who later worked for the World Bank, first used the term Washington Consensus in 1989, he claimed that he was actually referring to a list of reforms that he felt key players in Washington could all agree were needed in Latin America.

What was the second stage of monetarist approach?

The second stage was the reform of trade and exchange-rate policies so the country could be integrated into the global economy.