Washington Consensus in Latin America

In order to restart economic growth in Latin America after the so-called "lost decade," most countries in the late 1980s began implementing neoliberal reforms aimed at economic transformation. The most important economic rules, which were summarized by John Williamson and named Washington consensus, aimed at providing macroeconomic stability and much needed economic growth. At first, the transition to market economy seemed successful. After years of economic stagnation, the economy began to grow again, inflation was reduced, privatization provided much needed funds to the state treasuries and the attention of foreign investors turned towards the region. However, the initial success did not last long. Economic growth was far smaller, than what was originally expected, and many countries were failing in dealing with unemployment, poverty, and growing income inequality. Growing scepticism was then fuelled by a series of economic crises in the second half of the 1990s. Comparing the impact of neoliberal reforms on the economies of individual countries is problematic because the way in which they were carried out has differed in many countries. Countries have undergone reforms at different time, different speed and with different intensity. The scope of the implemented reforms also differed. In the..