The Washington Consensus was the name associated with economist John Williamson’s 1989 summary of policy recommendations for Latin American economies and other developing countries. The term became closely linked with debates about debt, inflation, and structural reform.
Williamson described a set of ideas including fiscal discipline, tax reform, competitive exchange rates, trade liberalization, openness to foreign investment, privatization, deregulation, and stronger property rights. International institutions based in Washington, D.C., were associated with many of the recommendations, which inspired the name.
The phrase is often used more broadly than Williamson originally intended. It is sometimes treated as a single rigid program, although the original list was a summary of reforms that Williamson believed had broad support in Washington policy circles.
Critics argued that applying these reforms too quickly could worsen unemployment, inequality, or financial instability. Supporters viewed them as a route toward more efficient markets and sustainable growth after the debt crisis.