Saturday, 4 December 1999

From ""What Should the Bank Think about the Washington Consensus?"

By John Williamson.

[...] My original paper (Williamson 1990, Ch 2) argued that the set of policy reforms which most of official Washington thought would be good for Latin American countries could be summarized in ten propositions:

*Fiscal discipline.
*A redirection of public expenditure priorities towards fields with high economic
returns and the potential to improve income distribution, such as primary health care,
primary education, and infrastructure.
*Tax reform (to lower marginal tax rates and broaden the tax base).
*Interest rate liberalization.
*A competitive exchange rate.
*Trade liberalization.
*Liberalization of FDI inflows.
*Privatization.
*Deregulation (in the sense of abolishing barriers to entry and exit).
*Secure property rights.

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