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Explain the rise of Post Washington Consensus FINAL

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Explain the rise of Post Washington Consensus FINAL
PROGRAMME OF STUDY: International Development

CANDIDATE NUMBER:10696

UNIT NUMBER: POLIM3018

UNIT TITLE: Theories of Development

UNIT TUTOR: Dr. Vernon Hewitt

ESSAY NUMBER & TITLE (if applicable): Explain the rise of Post-Washington Consensus

WORD COUNT: 3726 without reference

Explain the rise of Post-Washington Consensus

Introduction

Development assistance started as a concerted effort following the end of WW2. For in excess of thirty years this endeavour was headed by the import-based substitution industrialisation strategy (ISI), in essence claiming a protectionist approach as endorsed by national governments. Despite this, in next twenty years the more prevalent developmental strategy altered two times. The time from 1970-1990 experienced growth regarding the prevalence of neo-liberalism and developmental schematics through developmental means. The developmental assistance then alters from the ISI process to a market-centred approach before becoming a non-market-based organisation, according to Hayami (2003).

The rise in neo-liberal mentalities has encouraged a newer means of global development on the foundation of privatisation, liberal market, an out-looking perspective and interdependency of nations (Williamson, 1993). The market-oriented strategic approach corresponds to the Washington Consensus (WC), a paradigm that focuses on economic growth and asserted that the market is a proficient means to distribute resources while also galvanising economic growth. This strategy considers governmental intervention as a negative element to development and includes a free-market that aims to privatise economic facets. Through adherence to these principles, the significant Bretton Woods institutional fiscal organisations like the IMF (International Monetary Fund) and the World Bank, persuades governments to loosen their control over economies through societal adjustment policy (SAP).

Despite this, from the mid-1990s, the WC was being
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