What type of policies are typically associated with the Washington Consensus?

The Washington Consensus refers to a set of economic policy prescriptions that are widely associated with free-market reforms. These policies emerged in the late 20th century, particularly during the 1980s and 1990s, emphasizing liberalization and deregulation as a means to stimulate economic growth in developing countries, particularly in Latin America.

Key components of the Washington Consensus include measures such as fiscal discipline, tax reform, trade liberalization, deregulation, and privatization of state-owned enterprises. These reforms align with free-market principles, promoting competition, enhancing efficiency, and encouraging private investment. The goal behind these policies is to transition economies from state control toward market-driven systems, fostering a conducive environment for economic expansion and integration into the global economy.

In contrast, other choices represent approaches that are generally antithetical to the ideals of the Washington Consensus. Protectionism and subsidies typically favor government intervention in markets, hindering competition. State-controlled economies prioritize government ownership and control over resources, limiting the role of market mechanisms. Nationalistic trade regulations often aim to protect domestic industries through tariffs and restrictions, which runs counter to the free trade advocated by the Washington Consensus. Thus, the correct choice aligns with the principles that favor market-oriented policies designed to facilitate economic growth and