Washington Consensus vs Beijing Consensus
2. Washington Consensus:
The Washington Consensus has a neo-liberalist compound which has 4 core elements such: privatization, deregulation, fiscal and monetary reform, antithrust legislation. Around of these, it has ten recommendations. The recommendations are as follows: (1) Fiscal Discipline; (2) Restructuring Public/Social Expenditure Priorities; (3) Tax Reform; (4) Liberalizing Interest Rates; (5) Competitive Exchange Rates; (6) Trade Liberalization; (7) Liberalization of Inward Foreign Direct Investment; (8) Privatization; (9) Deregulation; and, (10) Property Rights (Williamson, 2004: 3-4). These recommendations structuralize market fundamentalism which espouses free-market capitalism.
The Beijing Consensus is based upon three overarching ideals of Chinese development, which in turn suggest “how to organize the place of a developing country in the world”. These ideals are innovation, pursuit of dynamic goals, self-determination. To summarize concepts of the ideals:
§ Innovation means dealing with the challenges of economic and social environment by creating effective –constant tinkering- policies.
§ Pursuit of dynamic goals means, that instead of per capita GDP (a rejection of western policy) the government ranks development accordance of be-all and end-all priority. Also, the government emphasizes on the need to simultaneously pursue multiple goals. (in contrast of the western development priorities)
§ Self-determination; the BJC emphasizes the need for developing countries to actively seek independence from outside pressure, as it is imposed by “hegemonic powers” such as the U.S.. In this sense, the BJC believes that the true development must be generated by country itself; to accomplish the goal, country must value independence and refuse the powers which are imposing their will. In this regard, China does not seek to impose its own priorities to others and his partners.
3. When I read information at the given text which depicts BJC, I figured that the Washington Consensus’s encumbered philosophy of free market capitalism is going to collapse due to the unbalance of excess consumption at developed countries with over-poverty at developing countries. I think, it is essential that, the developing countries needs to apply or create an alternative consensus likely BJC in order to develop according to be-all and end-all priority. The developing countries can reach the equal volume of economy, and prosperity with the developed countries by be-all and end-all philosophy and undependable economic growth. In this framework, merely, our world can reach balanced economical, social environment. In my opinion, Washington Consensus was a good inception of globalization. However, the Washington Consensus has a sole idea of generating multinational firms and countries to expand economy. Because of this, our globe has inequity. Due to unbalanced prosperity among countries, that’s continuing to cause war, economic crisis, low-wage workers etc… If we look at the recent spectrum of economy, we can say that, there are swarm of multinational organizations which are dominating their sectors especially in undeveloped countries.(P&G, Microsoft, Apple, Google, many more…) The governments of undeveloped counties are trying to maintain economy, and to improve competitiveness in order to generate national brand which is wrestling in global market. I think, it is essential for undeveloped or developing countries that, they must create an alternative way to develop without foreign incursion but, in the same time collaborate with global market and foreign organizations in order to improve quality and learn the know-how, and why-… . For instance, The Government of South-Korea has constrained the novel technological tool when it is going to enter the market. Because, the South-Korea has been succeeding by technological tools and the government wanted to protect their national brands. Particularly, this is so important for the world economy that, all of the countries have a different characteristics of economical and social environment and thus, the countries must thrive on in different branches. I think this utopia can lead the world economy stabilized and solves the every detrimental effects of capitalism.