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Politics

WASHINGTON CONSENSUS

Washington Consensus became the economic steps to take to promote development. It has ten points among which are the necessity for fiscal discipline, tax reform and Interest rate liberalization in countries that aspire for development. These countries must also have competitive exchange rates, adopt trade liberalization and allow the in-flows of foreign direct investment. Other ideals of the consensus include privatization, deregulation and secure property rights. These must be backed by big public expenditure priorities in primary health care, primary education and infrastructure.


The argument of radical scholars is that by opening to foreign investment, poor countries found their assets being bought and controlled by foreign corporations.
The rise of populist leaders in Brazil, Argentina, Ecuador, Venezuela and Uruguay against Structural Adjustment Programme (SAP) was a bold move to challenge the rough manner Bretton Woods institutions went about forcing down the throats of poor countries reforms they were not prepared for.
The institutions would later replace SAP with the Comprehensive Developmment Framework that had in it the Millenium Development Goals (MDGs) which has now evolved into the Sustainable Development Goals (SDGs).

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