Knowra Washington Consensus Washington Consensus The Washington Consensus is a set of market-oriented policy recommendations associated with reforms promoted by Washington-based institutions, especially for Latin American economies.
John Williamson : A British economist who coined “Washington Consensus” in 1989 to summarize policy priorities shared by Washington institutions. He coined the phrase and specified its original meaning.
Latin American debt crisis : A severe regional economic crisis in the 1980s, marked by debt defaults, recession, and financial instability. The reforms summarized by the Consensus addressed problems intensified by this crisis.
Post-Washington Consensus : A development-policy approach that supplements market reforms with attention to institutions, governance, and social outcomes. It responds to perceived limits of the reform agenda associated with the Consensus.
Latin American privatization : The transfer of Latin American state-owned enterprises to private ownership, especially during the late twentieth century. Privatization became a prominent and controversial reform associated with the Consensus.
Fiscal discipline : A policy of limiting budget deficits to levels considered sustainable without excessive inflation or debt. Williamson’s original list called for reducing large fiscal deficits.
1980s Latin American economic reforms : Policy changes across Latin America that included trade opening, privatization, and macroeconomic stabilization. Williamson distilled a shared reform agenda from policies already debated for the region.
Structural adjustment : Economic policy conditions attached to loans, commonly requiring stabilization and structural reforms. The Consensus is often conflated with the broader loan conditions imposed during adjustment programs.
1990s Latin American economic reforms : Economic changes across Latin America that expanded market competition and reduced some state controls during the 1990s. These reforms are often treated as the Consensus put into practice.
Trade liberalization : The removal or reduction of barriers that restrict international trade. Reducing import restrictions was one of the original prescriptions.
Institute for International Economics : A Washington think tank, now called the Peterson Institute for International Economics, founded in 1981. Williamson introduced the phrase at a 1989 conference organized by the institute.
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