Recommendations to the New Washington Consensus

    Important elements to be included in a pro-development post-Washington Consensus Consensus are the promotion of effective state institutions and more openness to alternative options by the international institutions in eradicating poverty, unemployment and development. However, there are barriers that we should still look out for, such as the undemocratic procedure and the lack of transparency in the global institutions. There are certainly other factors that must be taken into account; Political relationships between powerful nations can distort the process of development. By establishing a mutual goal by both institutions, the path to development and growth can be well established.

The US and the International Institutions

According to Ngaire Woods, international organizations such as the IMF and the World Bank were created primarily to support and enforce policy that is in the United States’ best interest. Woods also asserts that the US involvement with these institutions is a strategy to impose US foreign policy without being conspicuous and offensive to the rest of the world (Woods, 2003). There are several components of why the US is exceedingly influential in these institutions. Woods described four different direct and indirect approaches by the US which are: core budget, use of resources, staffing and management, and finally representation and deliberative functions.