Arguments for Post-Washington Consensus Consensus by Joseph Stiglitz Essay

Arguments for Post-Washington Consensus Consensus by Joseph Stiglitz - Essay Example s as of 1989.† (2).Such policies often include-fiscal discipline; a reorientation of public expenditure priorities toward fields offering both high economic returns and targeting evener income distribution,.e.g. primary health care, primary education, and infrastructure ;tax reform (to lower marginal rates and broaden the tax base);Interest rate liberalization ;a competitive exchange rate ;trade liberalization ;liberalization of inflows of foreign direct investment ;privatization ;deregulation (to abolish barriers to entry and exit) and secure property rights. This privatization agenda in pursuit of globalization has come under criticism as (1) says,† Some of the most vociferous of todays critics of what they call the Washington Consensus, most prominently Joe Stiglitz... do not object so much to the agenda laid out above as to the neoliberalism that they interpret the term as implying. I of course never intended my term to imply policies like capital account liberalizati on...monetarism, supply-side economics, or a minimal state (getting the state out of welfare provision and income redistribution), which I think of as the quintessentially neoliberal ideas†. In development literature it is examined and accepted that The Washington consensus emerged out of a kind of counter reaction in development economics (3) to what has been termed as rather operationally successful neoliberal revolution against Keynesianism prescriptions of the 1970s.The Washington Consensus, materialized in large and specially built Structural Adjustment Programmes (SAPs) suggested for a substantial portion of the developing countries in the ensuing years of 1980s and 1990s.It was the outcomes of these SAPs that were not along expected lines and which resulted in external criticism of The Washington Consensus itself. Joseph Stiglitz a World Bank Economist was the most prominent insider to offer criticism of the neoliberalism inherent in The Washington Consensus and the bod y of