Q.4 Differentiate between Washington consensus and Beijing consensus. Is Beijing consensus a challenge to the Washington consensus? 2019
The Washington Consensus and the Beijing Consensus are two different models of economic development that have emerged in the post-World War II era. While both models aim to promote economic growth and development, they differ in their approach and underlying philosophy.
The Washington Consensus is a model of economic development that emphasizes the importance of free markets, liberalization, and privatization. It was developed in the 1980s and 1990s by economists and policymakers associated with the International Monetary Fund (IMF) and the World Bank. The Washington Consensus prioritizes macroeconomic stability, fiscal discipline, and market-oriented policies such as deregulation, trade liberalization, and privatization of state-owned enterprises.
The Beijing Consensus, on the other hand, is a model of economic development that emphasizes the importance of state intervention and planning. It was developed in China in the late 1990s and early 2000s, and it emphasizes the importance of a strong state that can guide economic development through industrial policy, investment in infrastructure, and support for strategic industries. The Beijing Consensus also emphasizes the importance of social stability and the role of the state in promoting social welfare.
While the Washington Consensus and the Beijing Consensus differ in their approach and underlying philosophy, it is debatable whether the Beijing Consensus is a direct challenge to the Washington Consensus. Some argue that the two models are complementary, with the Beijing Consensus emphasizing the role of the state in creating an enabling environment for market-oriented policies, while the Washington Consensus emphasizes the importance of market-oriented policies in promoting economic growth and development. Others argue that the Beijing Consensus represents a challenge to the dominant neoliberal economic model represented by the Washington Consensus, and that it offers an alternative model of economic development that emphasizes state intervention and planning. However, this is a complex issue, and the relationship between the two models is still a subject of debate and discussion in the field of economics and international relations.
