I was studying for my exam and we have to know the 10 policies the “Washington Consensus” promotes. This term is what the IMF and the World Bank try to do for countries in economic crisis. My thing is how do we recommend these to other countries when we don’t follow them ourselves? We should follow these (except maybe number 2, see number 1) and here they are:
- Fiscal Discipline
- Public Spending moved towards education and pro-growth areas, away from subsidies.
- Tax Reform
- Market determined interest rates.
- Competitive Exchange Rates
- Free Trade
- Inward Foreign Direct Investment
- Secure Property Rights