Williamson used the term to summarize commonly shared themes among policy advice by washingtonbased institutions at the time. The first written usage was in my background paper williamson, 1990 for a conference that the institute for international economics convened in order to examine the extent to which the old ideas of development economic that had governed latin american ecunomic policy since the 19s0s were being swept aside by the set. 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 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. The record here is howlearning from reform summarizes the surprises of the 1990s.
In this article the author distinguishes between his original meaning as a. This chapter traces the origin of the term washington consensus to a paper written for a conference in 1989 that aimed to explore how the set of ideas accepted as a basis for policy in developing countries had changed. Also, in november 1989, at the institute for international economics, john williamson described ten macroeconomic goals he thought created a strong consensus in washington, and were seemingly necessary for emerging countries, especially in latin america, to aspire to sustained growth2. Most opponents of the washington consensus appear to have used the term. 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 ten principles originally stated by john williamson in 1989, includes ten sets of relatively specific policy recommendations. In fact for wlliamson the term washington consensus has been used in. Since 1989, when economist john williamson first conceived of the economic and policy recommendations known as the washington consensus williamson, 1989. It is hard to overemphasize the practical and ideological importance of the washington consensus in latin america. The term washington consensus usually refers to the level of agreement between the international monetary fund imf, world bank, and u. The term washington consensus, which emerged in 1989 as a byproduct of a historically unusual degree of consensus that latin american countries needed to stabilise, to open up their economies to trade and fdi and to liberalise, has proved controversial right from the start. Istilah konsensus washington diperkenalkan oleh john williamson pada tahun 1989 untuk mendeskripsikan sepuluh kebijakan ekonomi yang menurutnya perlu menjadi standar reformasi bagi negara berkembang yang baru didera krisis konsensus ini merekomendasikan disiplin anggaran pemerintah.
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. 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. During that time, he was the project director for the united nations highlevel panel on financing for development in 2001. Washington consensus harvards growth lab harvard university. The term washington consensus, as williamson the father of the term conceived it, in 1989, was a set of reforms for economic development that he judged washington.
The second possible alternative interpretation is that the washington consensus represents the policies collectively pursued by the washington based institutions that dispense. Peterson institute for international economics formerly. The case of the washington consensus suggests that policy paradigms have different dynamics in different types of institutional settings. The washington consensus was formed, in 1989, by john williamson to describe the consensus, initially for latin america and then for international development by international institutions in washington.
Although williamsons label of the washington consensus draws attention to the. To try and ensure that the papers addressed a common set. Williamson is best known for having coined the term washington consensus to describe a set of. Yet the term and its meanings have also interacted with a broader discourse on. The keyword washington consensus is tagged in the following 1 articles.
The washington consensus is a term coined by williamson in 1989 williamson, 1993. But the way he describes the approach conforms in many respects with thomas kuhnos notion of one. In 1989, argentina entered a process of sweeping transformation of its economic institutions which provided. Differing interpretations of the washington consens us. Washington consensus has come to be used to describe an extreme and dogmatic commitment. The papers presented at the conference were subsequently edited by williamson 1990, published in a book and as a result the term washington consensus became wellknown. A keynesian alternative to the washington consensus. It was introduced in a period when the keynesian dominance in economic theory and policy had collapsedafter the mid1970s crisis.
So then in 1989, the baker plan was complemented by an official endorsement of debt relief in the form. So much for the content of my version of the washington consensus. The term washington consensus, as williamson the father of the term conceived it, in 1989, was a set of reforms for economic development that he judged the international financial organizations could agree were required in latin america. We treat the socalled washington consensus williamson, 1994 as both the agenda of the reformer and the benchmark against. 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. Washington consensus definition and criticism economics help. Short history of the washington consensus 1 oxford scholarship. Washington consensus 2 the term washington consensus comes from a simple set of ten recommendations identified by economist john williamson in 1989. Ten years ago i invented the term washington consensus to refer to the lowest common denominator of policy advice being addressed by the washington based institutions to latin american countries as of 1989 williamson 1990. This widely shared perception was called the washington consensusand most succinctly expressed by john williamson in the 1990s. Williamson born june 7, 1937, hereford, england is a britishborn economist who coined the term washington consensus. In 1989, economist john williamson coined the term washington consensus. John williamson, the washington consensus, 1990 in the essay excerpted here, the economist john williamson coined term washington consensus. The introduction of the washington consensus involved not simply a swing from.
The observer was john williamson, a washington thinktank economist, and he outlined the 10 policies upon which there. Washington consensus 1,023,263,195 visitors served the washington consensus is a phrase initially coined in 1989 by john williamson to describe a relatively specific set of ten economic policy prescriptions that he considered to constitute a standard. Washington consensus, a set of economic policy recommendations for developing countries, and latin america in particular, that became popular during the 1980s. Official pdf, 43 pages world bank documents world bank group. The washington consensus as a transnational policy paradigm at the end of the 1980s, a participant at a conference on the latin ameri.
Democracy and the washington consensus sciencedirect. The term washington consensus was coined by john williamson. Washington consensus is a document presented in 1989 by james williamson fellow at the peter g. 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. 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. However, the revival of the outwardoriented, exportled development strategy has not provided growth rates similar to the postwar period of domestic.
The term washington consensus, as williamson conceived it, was. Pdf the term washington consensus, as williamson conceived it, was the lowest common. In fact for wlliamson the term washington consensus has been used in many different ways, distinguishing three different. As a matter of fact, the washington consensus was initially what most.
This article analyzes the birth, evolution, implications, and controversy surrounding williamsons decalogue from a latin american standpoint. Embracing ideals of freemarket capitalism, which included open trade policies, privatization. Key elements of the washington consensus until recently, there was a relatively broad consensus regarding the types of reform urgently needed in developing and transition countries. Of course, development was the main objective of the. 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. The ideas were intended to help developing countries that faced economic crises. The term washington consensus was coined in 1989 by john williamson williamson 2004b. He served as a senior fellow at the peterson institute for international economics from 1981 until his retirement in 2012. Pengarahan pengeluaran pemerintah dari subsidi ke belanja sektor publik, terutama di.
It was a response to the latin america debt crisis, but later became a universal policy handbook for countries experiencing economic instability or. Short history of the washington consensus 1 oxford. 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. 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. Differing interpretations of the washington consensus tiger. 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. Abstract 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. In 1989, john williamson, a fellow at the institute for international economics in washington, dc which previously advised the world bank and the international monetary fund, presented a background paper to a conference aimed to explore how extensive were the policy reforms that were then ongoing in latin america. The evolution of the antiwashington consensus debate. My impression is that the institution of private property was somewhat more securely entrenched in east asia than in most of the rest of the developing world. Institute for international economics it is difficult even for the creator of the term to deny that the phrase washington consensus is. The decalogue of consensus policies laid out by john williamson. John williamson the strange history of the washington consensus abstract.
The term washington consensus was originally used to describe a list often reforms that i argued were practically universally agreed in washington to be desirable in most latin american countries as of 1989. The washington consensus as i originally formulated it was not written as a policy prescription for development. The rise and fall of the washington consensus as a paradigm for developing countries charles gore united nations conference on trade and development, geneva, switzerland summary. The washington consensus is a set of ten economic policy prescriptions considered to. The rise and fall of the washington consensus as a. Goodbye washington consensus, hello washington confusion. From the washington consensus towards a new global governance 3 narcis serra, shari spiegel, and joseph e. Istilah konsensus washington diperkenalkan oleh john williamson pada tahun 1989 untuk mendeskripsikan sepuluh kebijakan ekonomi yang menurutnya perlu menjadi standar reformasi bagi negara berkembang yang baru didera krisis. The washington consensus as i originally formulated it was not written as a policy. Also, in november 1989, at the institute for international economics, john williamson described ten macroeconomic goals he thought created a strong consensus in washington, and were seemingly necessary for emerging countries. This paper argues that there is a substantial body of economic advice, roughly summarized in the washington consensus, that deserves to. The washington consensus as transnational policy paradigm. Pdf the evolution of the term washington consensus john. Democracy and the washington consensus john williamson institute for international economics, washington, dc summary.
From the washington consensus to the chile consensus. The term washington consensus was originally used to describe a list of ten reforms that i argued were practically universally agreed in washington to be desirable in most latin american countries as of 1989. The post keynesian retort to the after washington consensus. The need to be in consonance with accepted academic. The term was first used in 1989 by english economist john williamson. John williamson the phrase washington consensus has become a familiar term in development policy circles in recent years, but it is now used in several different senses, causing a great deal of confusion. Pdf the evolution of the term washington consensus. What should the world bank think about the washington consensus.
Introduction in mid 1989 i prepared a list of the principal economic reforms that were being urged on latin american countries by the powersthatbe in washington see williamson, 1990. The term washington consensus, as williamson the father of the term conceived it, in 1989, was a set of reforms for economic development that he judged washington could agree were required in. The political economy of economic reforms in argentina. Dec 22, 2017 essentially, the washington consensus advocates, free trade, floating exchange rates, free markets and macroeconomic stability. A british economist named john williamson coined the term washington consensus in 1989. The washington consensus started life as a list of ten policy prescriptions that were widely held in washington to be desirable in most of the countries of latin america as of 1989. 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 term describes a set of ten economic principles embodying ideals associated with neoliberal and globalisation polices, including free trade, free markets, and floating exchange rates williamson, 2004. A short history of the washington consensus 14 john williamson 3. John williamson, the washington consensus, 1990 in the. Avoidance of large fiscal deficits relative to gdp. The ten commandments of the washington consensus 1. Ten policies covering the areas of macroeconomic discipline, microeconomic liberalization, and opening up the economy globalization were asserted to be widely.
The rise and fall of the washington consensus as a paradigm. The coevolution of the washington consensus and the. Essentially, the washington consensus advocates, free trade, floating exchange rates, free markets and macroeconomic stability. Developmental ideologies the washington consensus the phrase washington consensus was first coined by john williamson in 1989 in his work where he showed the inadequacy of latin american reforms and identified areas that needed further improvement. This widely shared perception was called the washington consensusand most succinctly expressed by john williamson. 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. The washington consensus is a set of ten economic policy prescriptions considered to constitute the standard reform package promoted for crisiswracked developing countries by washington, d.
639 1536 1657 54 803 641 549 1501 1082 153 1065 653 1015 643 524 632 972 1400 1651 11 694 537 1533 1426 1164 553 1260 1155 1407 1333 1396 1204 1409 1161 964 1445 1357 1232 563 1441 176 344