Nobody downloaded yet

Washington Consensus and its impact on Thirds World Countries - Essay Example

Comments (0) Cite this document
Summary
Washington Consensus and its impact on Thirds World Countries Introduction The term Washington Consensus was coined and developed in 1989 by an American economist John Williamson. This was a policy which was designed by John Williamson, who was a member of the Institute of International Economics, a think tank based in Washington prescribing ten different policies for the less developed nations which also constituted third world countries to make them more robust economically and drive out poverty from those nations as well as getting them on the path of development…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.8% of users find it useful
Washington Consensus and its impact on Thirds World Countries
Read TextPreview

Extract of sample "Washington Consensus and its impact on Thirds World Countries"

Download file to see previous pages The original ten points conceived by Williamson were somewhere distorted in application by these nations. Along with this fact, another point of reference which is interesting to note is that people argue that Argentina’s failure of economy of 1999 was characterized by its own issues, which comprised of an uncompetitive fixed rate regime as well as failure to achieve effective control over its fiscal accounts, which became increasingly unpopular with the economic function of the country. “In a well-organized mixed economy, resources are efficiently allocated by means of the signals sent by relative prices. Relative prices, in turn, are determined in competitive markets. On the other hand, redistributive policies are explicitly included in the government’s Budget. In Argentina, on the contrary, those instruments of economic policy had switched roles. Instead of being instrumental in the efficient allocation of resources, relative prices were controlled by the government aiming at redistributing income. On the other hand, instead of playing a role in the redistribution of income, the government’s Budget aimed at allocating investment and employment.” (Yair Mundlak) The “Real” Coming of Washington Consensus: It is worth remembering that the belief that a less developed country could not really benefit from freer international trade and investment was, and to a certain extent continues to be, widely held in these countries. Therefore, the Washington Consensus' prescription that government-imposed barriers to imports and exports, to foreign investment and to foreign currency transactions had to be lifted was sharply at odds with the long-held conviction that developing countries had to protect their economies from an unfair and exploitative international system rigged against them. “This belief, of course, flowed from the core proposition of 'dependency theory', a set of ideas that gained much currency in the developing word and which had few if any conceptual points of contact with the economic profession as it was practiced in most industrialised, capitalist countries” ( Moises Naim, 2000) Neo-Liberal Reforms and their Impact on Third World Countries: Neo liberal reforms have not been able to help the state of the nations in Latin America. The paper shall analyse three countries to this effect, which are namely Argentina, Venezuela and Sierra Leon. After reviewing the existing position and the situation after the influence of neo liberal reforms such as Washington Consensus the writer shall argue that such reforms have hindered the development of these countries. How Neo Liberal Reforms Hindered Development in Chile: Organizations such as the Ford Foundation and the Chicago boys committed grave violence in the name of free market economy in Latin America. IN the disguise of promoting economic development and trying to liberalise the economy, they went on to destroy the existing structure which prevailed in Latin America during the 70’s by means of force. The Chicago Boys were a group of students from the University of Chicago who ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Washington Consensus and its impact on Thirds World Countries Essay”, n.d.)
Retrieved from https://studentshare.org/sociology/1433106-has-the-washington-consensus-helped-or-hindered
(Washington Consensus and Its Impact on Thirds World Countries Essay)
https://studentshare.org/sociology/1433106-has-the-washington-consensus-helped-or-hindered.
“Washington Consensus and Its Impact on Thirds World Countries Essay”, n.d. https://studentshare.org/sociology/1433106-has-the-washington-consensus-helped-or-hindered.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Washington Consensus and its impact on Thirds World Countries

The Washington Consensus: Success or Failure

...in the present world, labor mobility is in the decline. The Washington Consensus did not see welfare state as social entity which is closely linked to the survival of social democracy. Rather, they reduced it merely into an economic institution which is not viable or feasible. Washington Consensus vs. the Welfare State But, the emergence of the far group groups in the America and the Europe was the launching pad for the neoliberal assault on the welfare state and its so-called socialist polices. As part of the praxis of Washington Consensus, the state has abdicated its responsibility to...
6 Pages(1500 words)Essay

Why was the Washington consensus irresistible in Latin America

...with regards to the way in which stakeholders within this particular issue realize that it was in their best interest to accept the Washington consensus even with its tacit level of drawbacks. This is the hope of this particular analyst that the preceding information will be useful in categorizing and helping to understand the means by which stakeholders within the world can come to levels of agreement and cooperation based upon shared benefit and mutual understanding. Although the information that will be provided is specifically with regards to the international political economy and the methods and standards by which the integration of Latin American...
13 Pages(3250 words)Essay

Why was the Washington consensus irresistible in Latin America

..., then they form the bulk of the applicants in the World Bank and IMF recipient pools (Baer, 1974). These countries are at the receiving end of the trade liberalisation agenda of the institution. Their need for immediate financial support from these world institutions forces them to adopt all recommendations made by the entity without consideration of some of the potential repercussions of their actions. This explains why Latin America had to open up its economy to the world. The Washington consensus stemmed from such thinking. The World Bank has conducted research on the benefits of rapid liberalisation....
15 Pages(3750 words)Essay

Post Washington Consensus Consensus

...___________ ____________ ____December 2006 Post Washington Consensus Consensus Introduction John Williamson, the person responsible forthe phrase Washington Consensus says: "Audiences the world over seem to believe that this signifies a set of neoliberal policies that have been imposed on hapless countries by the Washington-based international financial institutions and have led them to crisis and misery. There are people who cannot utter the term without foaming at the mouth."(1).The phrase is taken "to refer to the lowest common denominator of policy advice being addressed by the...
6 Pages(1500 words)Essay

Third World Countries

...1 Introduction Countless arguments and theories have been forwarded as explanations for the causes of underdevelopment in Third World countries or, as some developmental economists have insisted, chronic and persistent underdevelopment (Pettman, 1996). Some have explained underdevelopment through reference to Wallerstein's world systems theory, others through dependency and still another group through culture and politics. While theorists have tended towards the arguing of a single cause, a critical analysis of the variant explanations forwarded establishes that underdevelopment, as in persistent and chronic underdevelopment, is a consequence of a multitude of factors and not just one. Accordingly, underdevelopment emerges... cause of...
5 Pages(1250 words)Essay

WASHINGTON CONSENSUS

...tantacles wide spread from the first world in the poor countries. The major criticism has come from latin american and ex-soviet republics . They majorly see the capitalism as the main monster creeping in the world on the wheels of the multinalnal companies. Ultimately the buzzwords of globalization, capitalism, neo-liberal agenda and Washington Consensus became familiar and synonymous to each other. People in the third world have been debating these terms ever since early 1950s. Most of them argue that there is an important sense in which disagreements on the character and consequences of...
6 Pages(1500 words)Essay

What Are the Issues Facing the World Trade Organization

...regulations, movie and music piracy and rules for trade in areas like frozen chicken” (Kramer & Weisman, 2006, para. 2). Recent indications are that Russia is unlikely to gain membership this year. Russia has been somewhat cautious in its membership negotiations for a couple of reasons. First, many Russians are concerned that WTO requirements might be inconsistent with the trade policies that are needed to promote the strength of the country’s unique economy (“Russia unlikely to join,” 2006). Second, Russia’s leading exports are unlikely to benefit from WTO membership. “The Russian economy could get a lift from membership in the World Trade Organization, though it is less likely to help...
8 Pages(2000 words)Term Paper

Arguments for Post-Washington Consensus Consensus by Joseph Stiglitz

...1.Introduction John Williamson, the person responsible for the phrase Washington Consensus says: “Audiences the world over seem to believe that this signifies a set of neoliberal policies that have been imposed on hapless countries by the Washington-based international financial institutions and have led them to crisis and misery. There are people who cannot utter the term without foaming at the mouth.”(1).The phrase is taken “to refer to the lowest common denominator of policy advice being addressed by the Washington-based institutions to Latin American countries as of 1989.” (2).Such policies often...
6 Pages(1500 words)Essay

On what grounds has the Washington Consensus been criticized Is the Post Washington Consensus a viable alternative Critically discuss

...the IMF, World Bank and the US treasury department. These policies were believed to be used for the recovery of Latin America from the financial crisis of the 1980’s. But Williamson’s concept of the theme was neoliberal in its approach. Even though the policy was put forward by Americans, the policy makers in Latin America used their own perspectives to develop these and introduce them in their own countries. These were developed keeping in mind what happened inside and outside the country. It was also said that these policies were largely a creation of Latin American politicians and technocrats and Williamson being a person to gather these policies first at one place....
7 Pages(1750 words)Essay

Third world countries

...Running Head: HUMAN RIGHTS The Third World Countries: Human rights Violation Naif Alotaibi of Mount Union Introduction Human rights are the principles and norms that articulate peculiar human behavior. Human rights are protected under law through several bills and treaties worldwide. Internal laws for human rights have been developed and updated by United Nations in Universal Declaration of Human Rights (UDHR) and in European Convention on Human Rights and African Charter of Humans Rights. Ngo NGOs are playing very vital role to foster human rights in the entire globe and they work as watchdog against violation of human rights. Such organizations raise their voice against the observed human rights violation and attempt to help... principles...
1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Washington Consensus and its impact on Thirds World Countries for FREE!

Contact Us