[The Definition and Threshold of the Washington Consensus]

The international development assistance has been started after World War Two. Government led the
nation’s developing project such as industrialization and economic growth over 20 years from 1950 to 1970.
However, at the end of the 1970, crisis occurred like oil shock, debt crisis and stagflation. That situation made
donor countries cut down the official development assistance. Debts of the developing countries rose rapidly
and finally Mexico proclaimed a moratorium.

Therefore, people started to have a negative perspective of the way leading development program by
government. Instead, World Bank and International Monetary Fund made a new theories which emphasized the
free market. They insisted that developing countries could overcome through free of the trade, privatization and
investment. Developing countries had to follow the restructuring WB guided if they wanted to get a assistant
fund. At that time, many developing countries participated in this conditional project that is called washington
consensus. By doing so, American-style-capitalism widely spread across the world.

However, later on, this washington consensus reached the ceiling. Their strategies caused environment
problem, income inequality, social alienation phenomenon and blocked to exercise human right. Specially, the
thing is that every country has different history, geography and conditions, but the washington consensus noted
a one diagram from poverty to wealth. Naturally, this uniform steps result in failure of being rich. A basic
contradiction of this theory is like that. They insisted free market power making government small, but at the
same time the country had to have the strong government power to lead this restructuring. Finally, people knew
that the market was not proper to distribute the income, and the government was the only organization to change
the nation conducting right way.

They focused on the country’s economy growth before the washington consensus. However, after the age
of the washington consensus was dying, people started to examine the variety aspects of the poverty. They
focused on qualify of the strategy such as education, health and social security too with quantity. They made
another new theory called comprehensive development frame which reflect on a prior discussion.

Even washington consensus failed, this failure lead another theory. Therefore, it was valuable enough at
least to change the paradigm better way.