November 7, 2023

The conversation included reflective questions about the achievements and legacy of the Washington Consensus concerning the building of institutions, reforms, and public policies.

On November 15th, we hosted the panel discussion "The Washington Consensus in Latin America: What Have We Learned and Where Are We Going?" It took place at the premises of Universidad de los Andes and marked the first in-person activity of the alliance between TREES and PRAEM (Programa de Análisis Económico de México) of El Colegio de México. 

The event aimed to reflect on the achievements, effects, and limitations for Latin America of the economic liberalization policies established 30 years ago in the Washington Consensus. The reforms that were part of this consensus aimed to promote freedom and deregulation of trade, thus limiting the state's intervention in the market.  

Although these policies led to macroeconomic stability in some nations of the continent, challenges of inclusion, sustainability, and increasing inequalities persist in Latin American countries. This has resulted in social unrest and significant political changes in some countries of the region. Achieving a deep and plural reflection on the decisions made in recent decades is essential to influence the creation of economic, political, and social alternatives to address these persistent problems. 

To achieve this goal, the panel discussion brought together four experts: Cecilia López, former Minister of State of Colombia, an expert in inclusive economic and social policies in the country. Lorenza Martínez, CEO of Banco Actinver, who has extensive experience in public and private financial institutions. Olga Lucía Acosta, member of the Board of Directors of the Banco de la República de Colombia, and an expert in monetary and financial policies. Santiago Levy, head of the Employment Mission in Colombia, renowned for his contributions to poverty alleviation.  

The conversation included questions to reflect on the achievements and legacy of the Washington Consensus regarding the construction of institutions, reforms, and public policies. It also explored which expectations have remained unfulfilled, along with the factors that possibly interfered with their realization. Furthermore, it analyzed how the paradigm proposed in the 1990s overlooked factors of social and political reality.  

Additionally, more specific ideas were included regarding the weaknesses of current social policy, postponed objectives to reduce inequalities, climate change, mitigation policies, challenges of central banks in Latin America, the change in the relationship between public and private sectors to create economic alternatives, and the most important lessons learned from the fight against poverty.  

If you missed the panel discussion, you can watch the live recording here: