The Washington Consensus Reconsidered: Towards a New Global Governance.

• Author: Harris, Helen
• Position: FURTHER READING - Book review

THE WASHINGTON CONSENSUS RECONSIDERED: TOWARDS A NEW GLOBAL GOVERNANCE

Narcis Serra and Joseph E. Stiglitz, eds.

(New York: Oxford University Press, 2008), 382 pages.

As Wall Street experiences a meltdown, macroeconomic stability is becoming harder to achieve and the role of financial institutions in preventing global financial turmoil is being put to the test. While the current crisis has stemmed from the industrialized economies, in the past it was not uncommon to witness similar economic downturns characterized by current account deficits, housing speculation and hefty government bailout packages in emerging markets. With this in mind, Serra and Stiglitz's book, which provides a current analysis of the Washington Consensus and its framework for future policy, becomes contemporary.

Since the financial crises in emerging markets during the 1990s, there has been a lack of faith in the Washington Consensus. While individual policies for market liberalization and macroeconomic stability have the potential to promote growth, the outcome of policy implementations following the Washington Consensus resulted in a decade of capital flight, currency crises, stagnation and recession. Within the context of the Barcelona...