Which is NOT part of the Washington Consensus?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Export subsidies.
The Washington Consensus is a set of ten economic policy prescriptions formulated by economist John Williamson in 1989 for developing countries. It promotes free-market principles such as fiscal discipline, trade liberalization, and tax reform. Export subsidies are NOT part of this framework; in fact, the consensus explicitly advocates for the reduction or elimination of subsidies to prevent market distortions. The goal is to move away from state-led protectionism toward a competitive, outward-oriented economy where the market determines prices rather than government incentives.