The Post-Washington Consensus policies should be completely abandoned Essay

The Post-Washington Consensus policies should be completely abandoned and countries left to choose their own development paths. Discuss - Essay Example nomic level to be adopted by these developing states, especially the Latin American states and the ex-communist bloc, to help them come out of the dire economic crisis. The main idea behind the propagation of the ideals behind Washington Consensus implied that there would be fre flow of capital across borders, including the free flow of services along with the goods, increasing market efficiency by monitoring and assistance via International Financial Institutions i.e. the IMF (International Monetary Fund). However, during the 1990`s the definition and the context of the Washington Consensus was revised, and consequently what is now being termed as the â€Å"Post-Washington Consensus† was deemed as a product of this development. As opposed to the earlier definition, where the ideals of Washington Crisis were being adopted for the well-being of the developing states, the ideals now being implemented were rather aimed at dictating biased policies on the part of the IFI`s with th e sole purpose of maintaining their status quo which is now being rejected by the mainstream intellectual community in the developing world. The Post-Washington Consensus must policies must be replaced by a progressive set of policies, considering the needs and economic feasibility of the developing world. Also, instead of imposing the neo-liberal policies on the Global South, the states must be left with an option to adopt a set of policies more suitable to their socio-economic setup. The Post-Washington Consensus was inherently flawed in understanding the basic economic structure of the developed states, and adopting generic measures for intrinsically complex state of affairs governing in each setup (Jomo & Fine 2006). Thus, the tools and techniques being applied in this context failed to produce desired results, and thus the wave of disappointment amongst the economically weaker states was instigated. Also, instead of coming off as industrially developed nations, these states turned into