Babb Flashcards
(10 cards)
What is the main argument of Babb & Kentikelenis (2021)?
The Washington Consensus was not just an economic recipe—it was a global project of institutional transformation, driven by organizations like the IMF and World Bank to embed neoliberalism into development strategies worldwide.
Why do the authors say sociology is essential here?
Because it helps explain how neoliberalism became institutionalised—not just through ideas, but through networks, power dynamics, and enforcement mechanisms in global governance.
What are the “10 Reforms” of the Washington Consensus?
Proposed by John Williamson (1990), they include:
Fiscal discipline
Deregulation
Trade liberalisation
Privatisation
Tax reform
Competitive exchange rates
And more—implemented via IMF/World Bank conditionality.
What is an example of deep IMF intervention?
Indonesia’s 1997 bailout: The IMF imposed 100+ conditionalities, reshaping national laws on bankruptcy, privatisation, banking, and even food subsidies—showing how policy sovereignty was surrendered during crisis.
Why does this article matter today?
It shows how neoliberal norms became “common sense” in global policy, often limiting the autonomy of developing nations and embedding inequality through institutional design—not just ideology.
Has the Washington Consensus disappeared?
No—while its ideological dominance has faded, its principles persist subtly in benchmarks, investment conditionalities, and technocratic tools, forming what the authors call an “undercover consensus.”
How did the Washington Consensus reshape development?
By shifting focus away from state-led strategies to market-led models, narrowing development policy options and imposing uniform prescriptions across very different national contexts.
What role did the IMF and World Bank play?
They acted as gatekeepers of reform, using conditional lending and technical expertise to export neoliberalism, especially in crisis-prone Global South countries.
What is a critique of the “undercover consensus” idea?
Some argue that rising powers like China and shifts in global order have eroded neoliberalism’s hold, suggesting the world is moving toward plural economic models, not just subtle continuity.
What is the key takeaway?
Neoliberalism is not just an ideology—it’s institutionally embedded in global governance. Understanding its endurance and adaptation requires a sociological lens, not just economic analysis.
