This website uses cookies to ensure you have the best experience. Learn more

Washington Consensus Essay

2315 words - 10 pages

The term “Washington Consensus” was the brain child of the English economist John Williamson. According to Williamson, the term referred to a set of ten specific economic policy prescriptions that he considered to represent the standard reform package promoted for developing countries, especially the Latin America by Washington based institutions such as the IMF and the World Bank. (Williamson, 2002). The ...view middle of the document...

It is against this background that this research paper is being undertaken. The paper will specifically focus on the top five policy recommendation of the Washington consensus being: Fiscal discipline, Redirection of public expenditure, tax reform, financial liberalization and competitive exchange rates. The aim is to find out whether these policies have been implemented in Botswana and the extent to which they have been implemented. Furthermore to find out what have been the consequence of their implementation and or non- implementation.

The first policy prescription in Washington consensus was Fiscal discipline. Washington believes in Fiscal discipline and it describes it as: low government borrowing and avoidance of large fiscal deficit relative to GDP. According to this policy, short run deficits and surpluses should be welcomed insofar as they contribute to macroeconomic stabilization.
One would not be at fault to proclaim that the policy of fiscal discipline have been long instigated in Botswana even before the Washington consensus came in to existence. (Leith, 2005) Note that when it comes to fiscal and monetary policies, the government of Botswana has always been disciplined and fiscally responsible. According to Leith, the government created shock absorbers between itself and the rest of the economy during the 1970s and 1980s in response to shocks on Agriculture and mineral revenues which fluctuated around 5% and 10% of GDP annually. It did this by smoothening expenditure whereby the government expenditure was let to grow at a slower rate than revenues. This resulted in the government running budget surplus during favorable shock to revenue and drawing on these surpluses during negative shocks to revenue. Most recently, in his state of the nation address, the President of Botswana indicated that, in terms of fiscal management, government succeeded in restoring a balanced budget during 2012/13 financial year after four years of budget deficit and it is currently running a budget surplus. Government’s fiscal discipline meant that, it was able to provide macroeconomic stability which is crucial to private sector investment and growth. It has been able to achieve its inflation target of 3 to 6% which currently stands at 4.5 %. It is safe to conclude that in terms of fiscal management Botswana has always been consistent with the Williamson’s Washington consensus.
The second policy reform involved redirecting public expenditure towards provision of key pro-growth, pro-poor services like primary education, primary health and infrastructure development.
Education has been a key development priority for Botswana since independence. The first president, the late Sir Seretse Khama uttered the following words in a speech given at Uppsala, Sweden on 11 November 1970, “most important of all the colonial government failed to recognize the need to educate and train our people so that they...

Other Papers Like Washington Consensus

Globalization In India Essay

3401 words - 14 pages . The program’s goal was to create a workable balance between economic necessity and the realities of India’s political economy (12). Economic reforms bore the unmistakable stamp of the Washington Consensus, introduced by John Williamson in 1989, and characterized by emphasis on both macroeconomic stabilization and structural adjustment. It described a set of ten policies that Williamson considered should be part of a standard reform

Waiting For Balance: A Review Of Waiting For Superman

3762 words - 16 pages standardized tests do not necessarily tell us whether or not students in low-performing schools are in fact ready to participate and compete for jobs in the twenty-first century economy or participate in making democratic decisions. Waiting for Super(wo)man at Failure Ground Zero The focus of the film turns to Washington D.C., where, at the time of the making of the film, reading proficiency was roughly twelve percent. Canada suggests that there is


2601 words - 11 pages issues into the understanding of post-war economic change and transformation.” — Michel Chossudovsky, University of Ottawa, Professor. “With an unusual flair for historical prototypes, Smith strips the Washington Consensus to its underclothes and beyond. A dazzling performance.” — William Krehm Editor, Economic Reform “Smith’s exposure of how conscientious professors and reporters are the unwitting carriers of disinformation, and thus unwittingly misinform their students and audience, provides researchers with an invaluable tool for unearthing truth.” — Ralph McGehee, originator of the database, CIABASE, and author of Deadly Deceits: My 25 Years in the CIA.

Economy After Cold War

3190 words - 13 pages a comparison of golden age to what he calls theWashington Consensus period, which he dates as spanning 1980–2009 (1973–1980 being a transitional period):[4] Metric | Golden Age | Washington Consensus | Average global growth | 4.8% | 3.2% | Average global inflation | 3.9% | 3.2% | Unemployment (US) | 4.8% | 6.1% | Unemployment (France) | 1.2% | 9.5% | Unemployment (Germany) | 3.1% | 7.5% | Unemployment (Great Britain) | 1.6% | 7.4

Latin America Essays

6085 words - 25 pages new free market system * Social Failures of the Washington Consensus * 1990-1994—households still more likely to be poor than at the end of 1970s (39% in 1994) * 1996—210 million living in poverty; racial and ethnic exclusion * Economic Failures of the Washington Consensus * 1990-1994—weak economic growth, 3% growth * Collapse of the Argentine economy * Drying up of foreign

Facebook Addiction

5933 words - 24 pages . Biodiversity. National Academy Press, Washington, D. C. About the Panel of Scientists This report presents a consensus reached by a panel of twelve scientists chosen to include a broad array of expertise. This report underwent peer review and was approved by the Issues in Ecology Board of Editors. The affiliations of the members of the panel of scientists are: Dr. Shahid Naeem, Panel Chair, Department of Zoology, University of Washington, Seattle, WA


2755 words - 12 pages * Africa’s infrastructure endowment * Ways of financing infrastructure * Impact of Infrastructure on Economic Growth. * Conclusions and recommendations * References Introduction * Generally, a consensus has developed that, under the right circumstances, infrastructure evolution can play a major role in improving growth and equity-and, through those two channels, help to eradicate poverty. * However, in spite of this

Did Legalizing Abortion Reduce Crime Rate In The Us

1951 words - 8 pages an additional 1.9 percent in 2008. The trend accelerated [in 2009] with a 5.5 percent reduction in overall crime ...” (Jerry Markon, The Washington Post, May 25th 2010) To replicate contributing factors and ensure sustained crime decrease sociologists and economists have tried to determine the root cause factors and have debated multiple reasons, sometimes contradictory, explaining this overall trend but none of these theories have reached

Paying College Athletes

1871 words - 8 pages teams like they do other campus based enterprises, like public radio and TV stations or hospitals. Program producers and station engineers at college-based NPR and PBS stations don’t work for nothing.” (Barbesh). The general consensus in opinion from national journalists that support paying athletes, is that the free market should pay the players. This argument can be summarized by saying that there should be a change to the NCAA’s definition of

Democratization In Sudan

2544 words - 11 pages ), there have been civil wars for 23 years, three military coups, two military uprisings and three civilian sectarian multi-party coalition governments. The primary cause of the prolonged civil wars and of the instability and sufferings of the Sudanese particularly in the South has been Khartoum’s sectarian rule and the failure to evolve a government based on overall national consensus. The failure of the leadership to establish a level of democracy

Journal Review

2712 words - 11 pages consensus as to why and how living arrangements might matter; though four theories have prevailed to explain developmental differences between children in mother only households and those in biological married-parent households: 1. Economic deprivation: Poverty and associated economic conditions, explain the variation in child development across living arrangements. 2. Socialization: Children benefit more from having both parents in the

Related Essays

Us Trade Policies Towards Latin America

1193 words - 5 pages Studies – 2XBF November 8th 2013 Number of words: 938 With the emergence of the Washington consensus, the US foreign policy shifted towards a neoliberal model in order to deal with the pressures incited by globalization. Neoliberal theory argues for the development of a free market economy where there is a high degree of free individual choice, and which achieves efficient economic performance by reducing the state’s intervention solely to

Biomass Essay

3497 words - 14 pages fossil fuel. Nippon Paper Industries USA (NPI USA) produces telephone directory paper, shipping to customers in North America and Australia. The mill's pulping systems consists of refined mechanical pulp and recycled paper. Formerly Daishowa America Co., Ltd, the mill was originally built in 1920 at the base of Ediz Hook on the Strait of Juan de Fuca and is located in Port Angeles, Washington. A de-inking facility was constructed in 1992 and

Who Have The Been The Main Winners And Losers From Globalisation?

2982 words - 12 pages adoption of ‘The Washington Consensus’ which briefly postulates that ‘national economies with more liberalization of trade and finance, higher market integration across borders (…), and a narrower economic of the state experience higher economic growth, less poverty, higher social mobility and less inequality than those with less’. Why then if we refer to the current global poverty and inequality levels, developing countries seem no better but in

General Management Essay

3711 words - 15 pages , most importantly, sometimes even communicate the very opposite of their wishes based on what they assume are the desires and opinions of others. People make incorrect assumptions about consensus. In the Abilene case, one suggestion (offered on the assumption that the people wanted to do something besides sit on the porch) began a domino-like sequence of individual agreement with the concept in spite of each person’s private misgivings about the