Journal of Economic Perspectives
ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)
Washington Consensus Reforms and Lessons for Economic Performance in Sub-Saharan Africa
Journal of Economic Perspectives
vol. 35,
no. 3, Summer 2021
(pp. 133–56)
(Complimentary)
Abstract
Over three decades after market-oriented structural reforms termed "Washington Consensus" policies were first implemented, we revisit the evidence on policy adoption and the effects of these policies on socio-economic performance in sub-Saharan African countries. We focus on three key ubiquitous reform policies around privatization, fiscal discipline, and trade openness and document significant improvements in economic performance for reformers over the past two decades. Following initial declines in per capita economic growth over the 1980s and 1990s, reform adopters experienced notable increases in per capita real GDP growth in the post–2000 period. We complement aggregate analysis with four country case studies that highlight important lessons for effective reform. Notably, the ability to implement pro-poor policies alongside market-oriented reforms played a central role in successful policy performance.Citation
Archibong, Belinda, Brahima Coulibaly, and Ngozi Okonjo-Iweala. 2021. "Washington Consensus Reforms and Lessons for Economic Performance in Sub-Saharan Africa." Journal of Economic Perspectives, 35 (3): 133–56. DOI: 10.1257/jep.35.3.133Additional Materials
JEL Classification
- E23 Macroeconomics: Production
- E62 Fiscal Policy
- F34 International Lending and Debt Problems
- H63 National Debt; Debt Management; Sovereign Debt
- L33 Comparison of Public and Private Enterprises and Nonprofit Institutions; Privatization; Contracting Out
- O11 Macroeconomic Analyses of Economic Development
- O23 Fiscal and Monetary Policy in Development
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