The Washington Consensus

The Washington Consensus refers to a set of economic policy recommendations for developing countries, formulated in the late 20th century. It emphasizes free-market principles, including trade liberalization, reduction of government spending, deregulation, and privatization of state-owned enterprises. The aim is to promote economic growth and stability by encouraging foreign investment and competitiveness. While it has been influential in shaping economic policy, critics argue it sometimes overlooks social equity and the unique circumstances of different countries, leading to mixed outcomes in development.