The Washington Consensus And Related Structural Adjustment Provisions ( Saps )

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The Washington Consensus (the Consensus) and related structural adjustment provisions (SAPs) are methods of economic policymaking for a developing society. It has bred a neoliberalist miasma in Latin America, asserting themes of privatisation, deregulation and liberalisation. Here, Williamson (2000) proposes a tripartite argument for the Consensus; rapid economic development is ingrained in nation policies; supplementary focus of such policies as ‘pro-poor’, aimed at poverty reduction; and governmental administration to foster developments. Naim (1993) informs Williamson’s (2000) propositions, but his Venezuelan example, El Gran Viraje (the Reform), demonstrates these neoliberal policies are problematic. This paper thus encapsulates that such economic, social and political upheavals subsequent the Consensus and related SAP implementation are reasoned with the discrepancy between the idealistic or narrow interpretation and implementation of the Consensus, and the nuanced reality of a nation.
The provision of a USD 4.5 million loan funded a Reform that relied on markets as origins of economic growth. Subsequent SAPs promoted a strong macroeconomic masquerade that forwent its symbiosis with microeconomic issues. It was the growing statism in 1989 Latin America that drove this rebellious neo-liberalist direction, countering overt government control through deregulatory, penetrative strategies. Informing Williamson’s (2000) argument of rapid economic development, Naim (1993)

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