From the Washington Consensus to a Colombo Consensus?

Guest post by Abdul Halik Azeez, WB-SAES Youth Delegate from Sri Lanka

(Azeez blogs at http://abdu.lk, Research Product Head, Frontier Research Sri Lanka)

This morning Pakistani economist Akmal Hussein talked about how mainstream economics/capitalism teaches that inequality is essentially an un-avoidable by product of growth. He said that equity is not only a measure of social justice but can also be a powerful driver of growth. You just have to open the lower and middle classes to opportunities to grow, giving you a much bigger base.

Great sentiments, I agree 100%. But how easy is it to talk about equitable growth while many countries in South East Asia are facing a ‘neoliberalize or die’ situation? And indeed, are enthusiastically jumping in the very same capitalist bandwagon that facilitates this systematic inequality. India for example is notorious for facilitating corporate expansion. It is, in fact, one of the most characteristic features of its growth. I think the tendency is to hope that equity will come after wealth is achieved, but if the West is any example, a semblance of equity within one’s borders is only achievable by impoverishing peoples beyond it.

Earlier still Ahsal Iqbal Chowdhry, Federal Minister For Planning in Pakistan, spoke bold words about the ‘failure’ of the Washington consensus, and even mentioned discarding it for a Colombo consensus, whatever that may mean, hopefully achievable starting today. But seeing as the most powerful economy in the region got its early nineties boost by the very same Washington Consensus, has it really ‘failed’ in that sense? What would India have been if it wasn’t bailed out? If it wasn’t invested in heavily by Western corporations?

I’m not defending the Washington Consensus, far from it. It has indeed created a lot of harm by seemingly creating growth, but it is ironic that it is this very growth that we celebrate, and hope to convert into something that is fundamentally against its nature. The Washington consensus ‘worked’ because it was essentially hegemonistic. It is the patronage of the powerful to the weak, and beggars cannot choose luxuries like equity.

Will Choudhry’s imagined Colombo Consensus incorporate some similar form of hegemony? Assuming it can even shrug of its Western counterpart as easily as he makes it sound. Indeed can South Asia with all its deep running conflicts, ever form a collective without some entity dominating?

Perhaps the fear of outside interference can enlighten the region to the benefits of mutual cooperation. But it has already incorporated many elements of Chowdhry’s ‘Washington Consensus’, perhaps too many to think of turning back without completely destroying and remaking itself. Perhaps in retrospect, it is telling that both speakers were Pakistani?

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