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Washington consensus It was coined by the US economist John Williamson. It was a set of ten economic policy prescriptions constituted as the “standard” reform package promoted for crisis-wracked developing countries by Washington DC-based institutions such as the International Monetary Fund (IMF), World Bank and the United States Department of the Treasury. The policy prescription led to processes which are known as Liberalization, Privatization and Globalization, thus cutting down the role of the State in the economy more so in the nations which got developmental funding from the WB and IMF in times of the Balance of Payment crises as in the case of India. However, later the term became synonymous with neoliberalism, market fundamentalism and even globalization across the world. It has often been used to describe an extreme and dogmatic commitment to the belief that markets can handle everything. It is widely believed that this signifies a set of neoliberal policies that have been imposed on hapless countries by the Washington-based international financial institutions such as the World Bank, IMF, and WTO that have led them to crisis and misery. Countries like India, China, and Russia among others have been against the Washington Consensus. Also, several multilateral forums and Banks such as BRICS, AIIB, and New Development Bank have been set up in response to this.

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