UPSC Prelims Practice Questions — The fate of the Washington Consensus, once talisman

Q1. The term 'Washington Consensus' is conventionally understood to denote the convergence of policy views among which one of the following sets of Washington-based institutions?

  • A. The International Monetary Fund, the World Bank and the U.S. Department of the Treasury
  • B. The International Monetary Fund, the World Trade Organization and the U.S. Federal Reserve
  • C. The World Bank, the OECD and the U.S. Department of the Treasury
  • D. The International Monetary Fund, the World Bank and the World Trade Organization

Q2. In current (2025) economic-policy discourse, the term 'London Consensus' most precisely refers to which one of the following?

  • A. An LSE-sponsored framework that appraises economic policy through the lens of both markets and the state, adding fiscal activism and strong institutions to the older orthodoxy
  • B. A G20 declaration adopted in London committing members to full capital-account liberalization
  • C. An IMF successor lending facility that formally replaced structural adjustment programmes
  • D. A Bank of England doctrine mandating uniform inflation targeting across emerging economies

Q3. With reference to John Williamson's original ten prescriptions of the Washington Consensus, consider the following. Which of the above is/are correctly identified as one of those prescriptions?

  1. Fiscal discipline to curb large budget deficits
  2. Liberalization of interest rates / financial markets
  3. Imposition of capital-account controls on cross-border flows
  4. Redirection of public expenditure toward areas such as health and education
  • A. 1 and 3 only
  • B. 1, 2 and 4 only
  • C. 2 and 3 only
  • D. 1, 2, 3 and 4

Q4. In John Williamson's 1989 formulation, the Washington Consensus comprised how many distinct policy prescriptions?

  • A. Eight
  • B. Ten
  • C. Twelve
  • D. Seven

Q5. With reference to the original ten prescriptions of the Washington Consensus, consider the following. Which of the above is/are NOT correctly identified as one of those prescriptions?

  1. Trade liberalization
  2. Privatization of state-owned enterprises
  3. The government acting as 'market maker of last resort'
  4. Securing of property rights
  • A. 3 only
  • B. 1 and 2
  • C. 2 and 4
  • D. 4 only