MITIGATING THE COSTS OF “WASHINGTON CON SENSUS” POLICIES: TITBITS FOR GHA NA AND OTHER AFRICAN COUNTRIES
The author examines the impact of the Washington ConsensusÂ, the neo-liberal policies of the Bretton-Wood Institutions, on African countries and, in particular, Ghana. Whilst accepting that the theoretical foundations of these policies have some merit, the author argues that their application in Africa has resulted in a number of adverse outcomes. The promotion of specialization in production and trade, the promotion of private enterprise generally, the elimination of state subsidies, external trade liberalization and the liberalization of financial and product markets have not delivered the benefits promised by theory when applied in a market that is far from perfect.
The author advocates for a number of policies that run contrary to the Washington-ConsenusÂ. He argues, amongst other things, that the State needs to play a greater role in the economy“ in maintaining control over certain strategically important industries, in assisting infant industries to grow and develop, in ensuring that more people and businesses can access credit and in subsidizing certain products to assist the poor. ...