Tuesday, January 27, 2004

The Washington Consensus, circa 1989:
  1. Fiscal discipline.
  2. Redirect spending priorities from things like indiscriminate subsidies to basic health and education.
  3. Lower marginal tax rates and broaden the tax base.
  4. Interest rate liberalization.
  5. A competitive exchange rate.
  6. Trade liberalization.
  7. Liberalization of FDI inflows.
  8. Privatization.
  9. Deregulation, in the sense of abolishing barriers to entry and exit.
  10. Secure property rights.

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