A Post Keynesian view of the Washington consensus and how to improve it

Abstract

The evidence of the past 15 years has demonstrated that attempting to implement the 10 reforms of the Washington Consensus has ultimately proven to be a disaster for developing nations. If the empirical evidence is of the failure of the Washington Consensus, then why does the G-7, the World Bank, and the IMF seek to tie aid for Latin American nations' economic problems to a demand for the nation to move toward full adoption of the 10 consensus reforms? This paper provides an explanation and suggests alternative policies to achieve success.

Keywords:

• economic development
• international finance