Implementing Economic Reforms in Mexico: The Washington Consensus as a Roadmap for Developing Countries

Abstract

The purpose of this paper is two-fold. First, is to provide an empirical analysis of the implementation of economic reforms in the areas of privatization, trade liberalization, and public expenditure priorities, using the Washington Consensus guidelines. Second, is to assess to continued viability of the Washington Consensus as a model for developing economies. The two methodologies used in this paper are case study and analysis of aggregated data. A case study of Mexico's economic reforms since the 1980's is used to assess whether those reforms have been implemented consistently. An analysis of aggregated data is then used to determine levels of implementation. The study finds that Mexico has failed to implement reforms in privatization, trade liberalization, and public expenditure priorities consistent with the ideals established by the Washington Consensus. It also recommends that developing countries continue to use the Washington Consensus as a blueprint for their own economic reforms.