ECON 1 Lecture Notes - Lecture 9: International Financial Institutions, Balanced Budget, Washington Consensus
Document Summary
Based on nation states own visions for long term development. Establishes ifi"s lending priorities/support program for country. Involves discussions with government authorities, civil society, ngo"s, development agencies, private sector. Project cycle: design preparation, implementation, competition and evaluation. Global forecasts and analyses of country/regional/global economies. Label for a set of neoliberal polices advocated by ifi"s. Neo liberalism: updated version of classical liberalism. Economy works best when left alone by government. Tax cuts and reform lower marginal rates. Price liberalisation more efficient distribution of resources. Deregulation and abolish barriers to market entry and exit. Trade liberalization increase foreign direct investment inflows. Eastern europe had no institutions of capitalism. Michel camdessus managing director of imf 1990. Was concerned about the administrative capacity of the governments to deal with such far reaching changes effectively". Enthusiastic implementation of washington consensus rising income inequality within and among countries. Owned by member governments share holders of institutions (187 countries) Voting share and level of board representation.
