Washington consensus

The term Washington Consensus most commonly refers to an orientation towards Neoliberal policies that from about 1980 - 2008 was influential among mainstream economists, politicians, journalists and global institutions like the IMF and World Bank. The term can refer to market friendly policies that were generally advised and implemented both for advanced and emerging economies. It is sometimes used in a narrower sense to refer to economic reforms that were prescribed just for developing nations, which included advice to reduce government deficits, to liberalise and deregulate international trade and cross border investment, and to pursue export led growth. The term Washington Consensus is also sometimes used by economic historians to label an era, which depending on the author can range from at most 1979 - 2009 to at least 1989 - 2000.

The term was initially coined in 1989 by John Williamson to describe a set of ten specific economic policy prescriptions that he considered should constitute the "standard" reform package promoted for crisis-wracked developing countries by Washington, D.C.-based institutions such as the IMF, World Bank, and the US Treasury Department.^[1]

The Washington Consensus was most influential during the 1990s. In the first decade of the 21st century it became increasingly controversial. In 2008 and 2009, following the outbreak of the financial crisis, a chorus of voices began to proclaim the Washington Consensus had ended. In November 2010 the G20 group of nations agreed on a new Seoul Development Consensus.