Why It Matters The Washington Consensus Could Not Hold
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Apr 2, 2025 Shannon K. O’Neil, a leading authority on global trade at the Council on Foreign Relations, joins to discuss the evolving landscape of U.S. trade policies. She examines the decline of the Washington Consensus, contrasting its historical role in promoting unity with the current trend towards protectionism. The conversation dives into the impact of tariffs under the Trump administration, highlighting their role in both international relations and American business uncertainty. O’Neil emphasizes the need for a renewed trade strategy to adapt to ongoing global challenges.
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Washington Consensus Overview
- The Washington Consensus, developed in 1989, comprised 10 economic policy standards.
- These aimed to guide economic improvement, with the U.S. championing global trade.
Washington Consensus Principles
- The Washington Consensus promoted opening economies to trade and capital flows.
- It also advocated for government reforms like privatization to reduce its economic role.
China's Success Story
- China's economic success, despite ignoring Washington Consensus principles, challenges its validity.
- China prioritized domestic development and state control, achieving rapid growth.