Q. The term “Washington Consensus” often seen in news is related to which of the following?

[A] Economic reforms

[B] Sustainable development

[C] Renewable energy

[D] Poverty alleviation

Answer: A

Explanation: Governments of the socialist or the planned economies were urged/suggested to privatize and liberalize, to sell off state-owned companies and eliminate government interventions in the economy.

  • These governments were also suggested to take measures which could boost the aggregate demand in the economy (i.e., macroeconomic stability measures).
  • The broad outlines of such a development strategy were regarded as being inspired by the Washington Consensus.
  • This consensus is broadly termed as the popular meaning of the ‘economic reform’ followed by almost all the socialist, communist and planned developing economies during the 1980s in one form or the other —the term economic reform got currency around the world during this period.

Source: TMH Ramesh Singh