Washington Consensus in Latin America: From Raw Model to Straw Man
Journal of Economic Perspectives
vol. 35,
no. 3, Summer 2021
(pp. 109-32)
(Complimentary)
Abstract
We take stock of three decades of a love-hate relationship between Latin American policies and the Washington Consensus, reviewing its implementation, national debate, and outcomes. Using regional data and case studies of Brazil, Chile, and Mexico, we discuss the various degrees of the Washington Consensus implementation and evaluate performance. We find mixed results: macroeconomic stability is much improved, but economic growth has been heterogeneous and generally disappointing, despite improvement relative to the 1980s. We discuss the risk that the region could revert parts of the Washington Consensus reforms, which are necessary building blocks for a new agenda more focused on social integration, a fairer and just society, and environmentally sustainable growth based on better education.Citation
Goldfajn, Ilan, Lorenza Martínez, and Rodrigo O. Valdés. 2021. "Washington Consensus in Latin America: From Raw Model to Straw Man." Journal of Economic Perspectives, 35 (3): 109-32. DOI: 10.1257/jep.35.3.109Additional Materials
JEL Classification
- E23 Macroeconomics: Production
- F31 Foreign Exchange
- F34 International Lending and Debt Problems
- H63 National Debt; Debt Management; Sovereign Debt
- O11 Macroeconomic Analyses of Economic Development
- O23 Fiscal and Monetary Policy in Development
- O44 Environment and Growth
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