source
From 65438 to 0989, Latin American countries in debt crisis urgently needed domestic economic reform. The American Institute for International Economics invited researchers from the International Monetary Fund, the World Bank, the Inter-American Development Bank and the US Treasury Department, as well as representatives from Latin American countries, to hold a seminar in Washington to provide solutions and countermeasures for economic reform in Latin American countries. John williamson of the American Institute for International Economics put forward 10 policy measures for the domestic economic reform of Latin American countries, and reached a consensus with the above institutions, which is called the Washington Consensus.
From 65438 to 0990, the American Institute for International Economics came forward and held a seminar in Washington to discuss the economic adjustment and reform in Latin America since the middle and late 1980s. At the meeting, john williams Jameson, former director of the American Institute for International Economics, said that the participants reached a * * * understanding on ten policy tools that Latin American countries have adopted and will adopt to a certain extent. Because the headquarters of international institutions and the US Treasury are in Washington, and the meeting is also held in Washington, this kind of * * * knowledge is called "Washington * * * knowledge". This understanding includes ten aspects: ① strengthening fiscal discipline, reducing fiscal deficit, reducing inflation rate and stabilizing macroeconomic situation; (2) shifting the focus of government expenditure to areas with high economic benefits and areas conducive to improving income distribution (such as culture, education, health and infrastructure); ③ Reform the tax system, reduce the marginal tax rate and expand the tax base; ④ Marketization of interest rate; ⑤ Adopting a competitive exchange rate system; ⑥ Trade liberalization and market opening; ⑦ Relax the restrictions on foreign investment; (8) Privatization of state-owned enterprises; (9) Deregulation of government; Attending the protection of private property rights. Noam Chomsky, a famous American scholar, clearly pointed out in his book Neo-liberalism and Global Order that "the neo-liberal Washington consciousness refers to a series of market-oriented theories formulated by the American government and its international economic organizations and implemented in various ways".
content
1. Fiscal policy
1. Strengthen fiscal discipline;
2. Shift the focus of government expenditure to areas with high economic returns and conducive to improving income distribution, such as basic medical care, basic education and infrastructure;
3. Reform the tax system, reduce the marginal tax rate and expand the tax base;
2. Monetary policy
1. interest rate liberalization;
2. Adopt a competitive exchange rate system;
3. Trade and financial policies
1. Trade liberalization;
2. Liberalization of capital access, especially foreign direct investment;
4. Macro industrial policy
1. Privatization;
2. Deregulate government regulation and remove obstacles to market access and exit;
Protect property rights