The “Washington Consensus,” a term coined by John Williamson, is intended to represent the policy advice offered by the World Bank, IMF, and US government (all located in Washington, DC.)The “Washington Consensus” is closely associated with the market-led theory of economic development.Hence the “Washington Consensus” emphasizesPrivate propertyrightsMarket prices (including interest rates)Economic openness(freetrade and openness to direct foreign investment)Macroeconomic stabilityCritics charge that the “Washington Consensus” ignores the active state role in the most successful late developing countries.
The term “Beijing Consensus” was coined by JoshuaRamoto represent an alternative set of policy prescriptions to the “Washington Consensus.”“It replacesthe widely-discredited Washington Consensus, aneconomic theorymade famous in the 1990s for itsprescriptive, Washington-knows-bestapproach to telling other nations howto runthemselves. The Washington Consensus was a hallmark ofend-of-historyarrogance; it left a trail of destroyed economies andbad feelingsaround the globe. China’s new development approachis drivenby a desire to have equitable, peaceful high-qualitygrowth; criticallyspeaking, it turns traditional ideas likeprivatisationand freetrade on theirheads (Ramos 2004).”The Beijing Consensus is commonly associated with the state-led theory of economic development.The “Beijing Consensus” emphasizes that there is no one right answer toForms of property rightsReliance on market pricesDegree and timing of economic opennessCritics chargethat the“Beijing Consensus” ignores theextent to which the Chinese state has gradually introduced non-state (private and foreign) ownership, market prices, and freer trade albeit combined with an activestate role ineconomic development.