Department of economics university of crete, rethymno 74100, crete, greece ph. Apr 21, 2020 the washington consensus is a term used to describe ten policy prescriptions laid out by economist john williamson. Washington consensus definition and criticism economics help. Institute for international economics, washington, dc. Washington consensus harvards growth lab harvard university.
The term washington consensus was coined by john williamson. The washington consensus is a set of ten points outlined by john williamson summarising policy advice from washingtonbased institutions to latin america after the 1980s debt crisis. Pdf the term washington consensus, as williamson conceived it. First, there was an unexpectedly deep and prolonged collapse in output in countries mak.
Within this context, economist john williamson authored a paper in 1990 that outlined the prescriptions for economic development in emerging markets known as the washington consensus. Theresa williamson, john williamsons daughter, is a city planner and founding. The authors are, respectively, president, chief economist for latin america. It is hard to overemphasize the practical and ideological importance of the washington consensus in latin america. Proponents and critics alike agree that the policies spawned by the washington consensus have not produced the desired results. A british economist named john williamson coined the term washington consensus in 1989. The washington consensus as policy prescription for development. Washington consensus is being implemented in every capital of the. Dec 14, 2016 the concept and name of the washington consensus were first presented in 1989 by john williamson, an economist from the institute for international economics, an international economic think tank. My original paper williamson 1990 argued that the set of policy reforms that most of official washington diought would be good for latin american countries could.
The term was first used in 1989 by english economist john williamson. An important marker in this intellectual terrain is the world banks economic growth in the 1990s. The decalogue of consensus policies laid out by john williamson in his 1989 landmark paper became in the minds of advocates and pundits alike a manifesto for capitalist economic development. John williamsonbiographical sketch john williamson was born in 1937 and educated at the london school of economics and princeton university.
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. Within this context, economist john williamson authored a paper in 1990 that outlined the prescriptions for economic development in emerging markets known as. A short history of the washington consensus smu scholar. Official pdf, 43 pages world bank documents world bank group.
The washington consensus the phrase washington consensus was originally coined by john williamson, who in 1990 used it as a descriptive term to refer to the lowest common denominator of policy advice being addressed by the washingtonbased institutions to latin american countries as of 1989 williamson, 2000. John williamson, the washington consensus, 1990 in the essay. The washington consensus as policy prescription for development john williamson senior fellow, institute for international economics a lecture in the series practitioners of development delivered at the world bank on january, 2004. John williamson, the washington consensus, 1990 in the essay excerpted here, the economist john williamson coined term washington consensus. The washington consensus as a transnational policy paradigm at the end of the 1980s, a participant at a conference on the latin american debt crisis observed that economists and policymakers in and around washington, dc, had converged on a common set of prescriptions for developing countries. John williamson, a short history of the washington consensus. It was right wing policy advice to correct failures of prior approaches to development. The washington consensus is a set of ten economic policy prescriptions considered to. The ten commandments of the washington consensus 1. These prescriptions are meant as a baseline of directions for nations in need of assistance from international economic entities, such as the world bank and the international monetary fund. Global economics in extraordinary times stephany griffithjones. Democracy and the washington consensus john williamson institute for international economics, washington, dc summary.
The record here is howlearning from reform summarizes the surprises of the 1990s. A short history of the washington consensus 14 john williamson 3. The concept and name of the washington consensus were first presented in 1989 by john williamson, an economist from the institute for international economics, an international economic think tank. The decalogue of consensus policies laid out by john williamson. Economists, privatization in russia and the waning of the. Williamson discussed the principles behind the washington consensus and highlighted the areas in which one could say there is a brussels consensus. Beyond the washington consensus jeremy clift in 1989, economist john williamson coined the term washington consensus.
Senior fellow, institute for international economics. Codified in john williamsons 1990 wellknown washington consensus, this advice inspired a wave of reforms in latin america and subsaharan africa which fundamentally transformed the policy landscape in these developing areas. Williamson used the term to summarize commonly shared themes among policy advice by washingtonbased institutions at the time. The washington consensus reconsidered books publications. John williamson retired in 2012 as senior fellow at the peterson institute. Williamson, 2003 there is great uncertainty about its likely successor, often dubbed the postwashington consensus stiglitz, 1998. This volume brings together many of the leading international figures in development studies, such as 2008 nobel prize in economics winner paul krugman, jose antonio ocampo, dani rodrik, joseph stiglitz, daniel cohen, olivier blanchard, deepak nayyer and john williamson to reconsider and propose alternative development policies to the washington consensus. By john williamson, senior fellow institute for international economics paper prepared as a background to the world banks world development report 2000 july 1999 the author is indebted to the participants in a prem week session where an early version of the. Williamson is a senior fellow at the institute for international economics iie in washington dc and the originator of the concept washington consensus.
From the after to the amended washington consensus. The ten commandments of the washington consensus balance of. Apr 30, 2018 the washington consensus refers to a set of freemarket economic policies supported by prominent financial institutions such as the international monetary fund, the world bank, and the u. Redefining the role of the state columbia business school. Goodbye washington consensus, hello washington confusion. The washington consensus as policy prescription for. G w c h w c dani rodrik harvard university january 2006. Dec 22, 2017 the washington consensus has diverged somewhat from the original intention of john williamson. John williamson is senior fellow at the peterson institute for international.
The term washington consensus, as williamson conceived it, was the lowest common denominator of the reforms that he judged washington could agree were required in latin america. Dubbed the washington consensus, it addressed economic policy instruments perceived by. However, there needs to be greater discrimination and less blanket implementation. The washington consensus has diverged somewhat from the original intention of john williamson. In 1989, economist john williamson coined the term washington consensus.
From the washington consensus towards a new global governance 3 narcis serra, shari spiegel, and joseph e. Turin since 1989, when economist john williamson first conceived of the economic and policy recommendations known as the washington consensus williamson, 1989, this consensus became generally accepted as the most effective model by which developing. Sep 19, 2017 williamsons the washington consensus initial agenda, the life cycle and the global spread of this term and its meanings during the last three decades, and williamsons 2004 paper itself in which he tried to retrospectively reposition himself are an interesting and rich example of sociology of economics. Economist washington fall 2008 university of washington, department of economics 2008 economics distinguished alumnus. Undoubtedly, john williamson is famous for pioneering the phrase washington. Daniel cohen, paris school of economics, oecd development centre, and. The debate now is not over whether the washington consensus is dead or alive, but over what will replace it. The term washington consensus was coined in 1989 by the economist john williamson to describe a set of ten relatively specific economic policy prescriptions that he considered constituted the standard reform package promoted for crisiswracked developing countries by washington, d. Democracy and the washington consensus visionary values.
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. It referred to a set of reforms that many economists and policymakers believed latin america would have to undertake to recover economically from the debt crisis of the 1980s. 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. Global economics in extraordinary times stephany griffith. The washington consensus as transnational policy paradigm. Chapter 2 the washington consensus trade and investment.
The washington consensus refers to a set of freemarket economic policies supported by prominent financial institutions such as the international monetary fund, the world bank, and the u. The term washington consensus, as williamson conceived it, was the lowest common denominator of the reforms that he judged washington. Since 1989, when economist john williamson first conceived of the economic and policy recommendations known as the washington consensus williamson, 1989, this consensus became generally accepted as the most effective model by which developing nations could spur growth. This misimpression clearly owes a lot to the surprising popularity of the term washington consensus the name that economist john williamson gave in 1989 to a list of 10 policy recommendations. He was referring to a set of policy expectations about latin american economic decisions that were shared by leaders in the united states government and the international financial institutions. The concept and name of the washington consensus were first presented in 1989 by john williamson, an economist from the institute for international economics, an international economic think tank based in washington, d. The first stage in answering these questions is a careful examination of the semantic issues involved.
In 1989, john williamson outlined a set of desirable economic reforms targeted at developing countries that he deemed broadly supported by policymakers in washington. Haruyuki niimi, ba 1959 estate of george corkery jr. He was seeking to emphasize the shift in policy prescriptions common for latin america during the 1950s 1970s to a set of policies that were more contemporary and widely accepted. 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 is a term used to describe ten policy prescriptions laid out by economist john williamson. Williamson born june 7, 1937, hereford, england is a britishborn economist who coined the term washington consensus.
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