HIST 151

Political Economy of Modern Asian Development

Key Terms
Liberalization - the removal or loosening of restrictions on something, typically an economic or political
system.

Neoliberalism - a political approach that favors free-market capitalism, deregulation, and reduction in
government spending.

Washington Consensus (WAC) - a set of ten economic policy prescriptions considered to constitute the
"standard" reform package for developing countries.

Beijing Consensus (BEC) - is a.k.a. The “China Model” and advocates for a blend between national
control and ownership of resources and economic activities alongside private entrepreneurs.

ASEAN Development Consensus (ADC) - A hypothesized development model for the ASEAN region,
grounded in a sense of shared vision and commitment to the region’s common prosperity to bolster
ASEAN’s global economic and political position in the decades to come.
Washington Consensus (WAC)
Starting in the late 1980s:
The US and IGOs like the WB, IMF, and WTO started to advocate for a set of
principles that would help countries to develop
The 10 points in the (WAC) focused on 2 main categories:
Macroeconomic stability
Liberalization
The programs were often called “shock therapy” because the advice was to
implement all the policies as soon as possible. However, often the rapid social and
economic changes caused unforeseen problems in the countries
Augmented Washington Consensus

In the late 1990s, 10 more points were added to the original points of the (WAC)

Because some countries’ development slowed or had unforeseen social

issues, policymakers added rules that addressed what had gone wrong in other
countries that used the original Washington Consensus (WAC)

These rules were to ensure that countries had the institutional capacity to
enact the original 10 points. The (WAC) was criticized as a ‘one-size-fits-all’
model that missed some of the nuances of different countries.
Beijing Consensus (BEC)

The (BEC) refers to the economic and social reforms that Deng Xiaoping implemented in 1976 in
China.
Unlike the (WAC), the (BEC) is not a list of points but instead it shows differences in approaches
to development. For example:
1) State-owned enterprises (SOEs) are not explicitly targeted for privatization, and the state
has a larger role in the economy...not a free-market only.
2) National borders, political interests, and protectionism are seen as useful tools for
development in the (BEC) instead of efficiency reducing market distortions like in the
(WAC).
3) Political reform is not a priority. Term limits, human rights, and democracy are not goals of
the system and repressive government is okay if it leads to development.
Examples of differences between the systems
,
Policy prescriptions and reform goals
ASEAN Development Consensus (ADC)
In 2020, scholars at the National University of Singapore (NUS) called for a new
model of economic development for the ASEAN. This new consensus highlights 3
specific areas the region should focus on to ensure development and avoid the
MIT.

(ADC) focus areas:

1) Synergy
2) Vigour
3) Sustainability
.
.
ASEAN Development Consensus - Implementation
The speed and extent of reforms will vary in each ASEAN country depending upon:

• the respective country’s level of readiness;

• the pressures (internal and external) that compel the country to improve economic performance;

• leadership vision;

• government coordination capability;

• enabling conditions, including the external environment and technological progress; intangible
impediments to progress, including legacy systems, outdated regulations, and old-fashioned mindsets;
and

• obstacles caused by selfish motives and corruption.

 Comparing the 3 Development Models
.
Breakout Rooms
Compare the 3 development models on the prior slide.

1) Which model works best for your country?

If you have selected the ADC, then give details about what policies would
help achieve the 3 goals.
If you selected the WAC or BEC, what reasons compel you to choose
this for your country?
2) What are the potential downsides for your country with choosing the
development model?