ideologies the washington consensus the phrase washington consensus was first coined by john williamson in 1989 in his work where he showed the inadequacy of latin american reforms and identified areas that needed further improvement. it simply expressed the widely held view in washington and by international development institutions that there is a path that developing countries ’ economic reforms should follow to absorb aid efficiently. the washington consensus contains ten rules namely, fiscal discipline, tax reform, re - ordering public expenditure priorities, competitive exchange rate, privatization, trade liberalization, liberalizing interest rates, deregulation, liberalizing of inward fdi and property rights. these rules mirrored the tenets of liberal market - oriented capitalism and policies of the then ronald reagan and margaret thatcher governments which, were strong promoters of capitalism and neo - liberal ideology. neoliberal ideology derived its tenets from the work of 18th century economist, adam smith, who advocated free trade among nations as a way of promoting global growth. the policy prescriptions of conditioning aid and compelling developing countries to open their capital accounts and promote unhindered movement of portfolio investment across international borders by the imf and world bank have close similarities to the tenets of the washington consensus. beijing consensus the beijing consensus emanated from the published work of joshua cooper ramo in 2004, where he described the social and economic transformation of china as the new physics of power and development. transformation under the consensus was embedded in three principles namely innovation, promoting works through chaos management and selfdetermination ( kennedy, 2008 ). by the first component, china ’ s economic success was rooted in constant innovations that improved its total factor productivity, while the second represents china ’ s quest for economic development which was not limited to growth but equitable distribution of wealth. the third component symbolizes the ability of china to chart and maintain her developmental polices as a model for other countries to follow and emulate ( kennedy, 2008 ). therefore, the term beijing consensus was the sum of the five pillars of the economic policies of china over the years which included incremental reform, innovation and experimentation, export - led growth, state capitalism and authoritarianism ( williamson, 2010 ). the next sub - section briefly examines some related theories of trade from which neo - liberal ideology derived its tenets. bis central bankers ’ speeches 2. 1 trade theories free trade originated from the traditional theory of comparative advantage which asserts that nations tend to gain from trade if they specialize in the export of commodities they can

klaus liebscher : emu and globalization – chances and challenges speech by dr klaus liebscher, governor of the austrian national bank, at the central council of elec, vienna, 1 june 2007. * * * ladies and gentlemen! it is both a privilege and a pleasure for me to address this distinguished audience on the topic “ emu and globalization – chances and challenges ”. european monetary union ( emu ) and the euro, which seemed to be very ambitious projects of european integration some decades ago, meanwhile have become a remarkable contribution both to the stability and the international competitiveness of the european union, and in particular of the euro area. one of the success factors of this milestone of european integration was the strong political will to follow the “ stability architecture of emu ”, which rests on three pillars : a monetary policy oriented to price stability, a fiscal policy geared towards sound public finances ( stability and growth pact ) and structural policies designed to foster competitiveness and sustainable economic growth ( lisbon agenda ). so far, emu and the euro can be seen as one of the eu ’ s most important strategic responses to the chances and challenges of a globalized world. earlier this year, we celebrated the 50th anniversary of the treaty of rome, which established the european economic community ( eec ). the day the treaty was signed, march 25, 1957, is considered the birthday of the european union, which today unites around 490 million people in 27 countries. and in today ’ s euro area, about 317 million people in 13 countries benefit from a low inflation environment and stable inflation expectations, a high degree of confidence in their currency and moderate interest rates – all elements of a favorable economic environment conducive to investment and business. since 1999, we have experienced a number of important shocks to the global economy, such as the y2k challenge, substantial oil price increases, the ups and downs of the euro exchange rate, the boom and the burst of the equity market bubble, global imbalances and the clouds of war and terrorism. amidst all of this, the governing council of the european central bank ( ecb ) has guided inflation expectations in a manner consistent with price stability and thus provided a reliable anchor for the euro - area economy, while the euro has sheltered euro area financial markets against those shocks. not least because of the growing international use of the euro, the stability culture formed by the single currency has already bestowed positive benefits on the non - euro area eu member states