Rethinking the Emerging Post‐Washington Consensus

The objective of this article is to provide a critical assessment of the emerging Post‐Washington Consensus (PWC), as the new influential vision in the development debate. The authors begin by tracing the main record of the Washington Consensus, the set of neoliberal economic policies propagated largely by key Bretton Woods institutions like the World Bank and the IMF, that penetrated into the economic policy agendas of many developing countries from the late 1970s onwards. They then outline the main tenets of the PWC, emerging from the shortcomings of that record and the reaction it created in the political realm. The authors accept that the PWC, in so far as it influences the actual practice of key Bretton Woods institutions, provides an improvement over the Washington Consensus. Yet, at the same time, they draw attention to the failure of the PWC, as reflected in current policy practice, to provide a sufficiently broad framework for dealing with key and pressing development issues such as income distribution, poverty and self‐sustained growth.     

The dynamics of emerging middle-power influence in regional and global governance: the paradoxical case of Turkey

This article attempts to understand the properties, potentials and limits of middle-power activism in a changing global order. Extensive debate on the rise of emerging powers notwithstanding, the potential contributions of emerging middle powers in regional and global governance, and the imminent challenges they face in their struggle for an upgraded status in the hierarchy of world politics, is an understudied issue. This study aims to fill this gap by offering a broad conceptual framework for middle-power activism and testing it with reference to the Turkish case. In this context, the authors aim to address the following questions: What kind of roles can emerging middle powers play in a post-hegemonic international system? What are the dynamics, properties and limitations of emerging middle-power activism in regional and global governance? Based on an extensive study of the Turkish case, the authors’ central thesis is that emerging middle powers can make important contributions to regional and global governance. Their ultimate impact, however, is not inevitable, but depends on a complementary set of conditions, which are outlined in this study.     

The Regulatory State and Turkish Banking Reforms in the Age of Post‐Washington Consensus

The new era of the Post‐Washington Consensus (PWC), promoted under the auspices of International Financial Institutions such as the International Monetary Fund and the World Bank, centres on the need to develop sound financial regulation and strong regulatory institutions, especially in the realm of banking and finance in post‐financial crisis developing countries. This article uses an examination of the Turkish banking sector experience with the PWC in the aftermath of the 2001 financial crisis to show its considerable strengths and weaknesses. The authors argue that the emergent regulatory state in the bank‐based financial system has a narrow focus on strengthening prudential regulation, whilst ignoring the increased ‘financialization’ of the Turkish economy. They identify the positive features of the new era of the PWC in terms of prudential regulation, which has become much more robust in its ability to withstand external shocks. At the same time, however, the article highlights some of the limitations of the new era which resemble the limitations of the PWC. These include the distributional impact of the regulatory reforms within the banking sector, and notably the emergence of foreign banks as the major beneficiaries of this process; weaknesses in promoting productive bank intermediation that finance the real economy and economic growth, leading to poverty reduction via growth of employment whilst stimulating financialization within the economy; and finally, the exclusive focus on prudential regulation, whilst ignoring regulatory costs, consumer protection and competition regulation.