Beijing Consensus
Encyclopedia
Beijing Consensus is a term that represents an alternative economic development model to the Washington Consensus
of market-friendly policies promoted by the IMF
, World Bank
and U.S. Treasury, often for guiding reform in developing countries. While there is no precise definition of the Beijing Consensus, although many have laid out plans, the term has evolved into one describing alternative plans for economic development in the underdeveloped world, so-named as China
is seen as a potential model for such actions.
's Foreign Policy Centre published a paper by Joshua Cooper Ramo
titled The Beijing Consensus. http://www.xuanju.org/uploadfile/200909/20090918021638239.pdf In this paper, he laid out three broad guidelines for economic development. Ramo was a former senior editor and foreign editor of Time
magazine and later a partner at Kissinger Associates
, the consulting firm of former U.S. Secretary of State Henry Kissinger
.
The first guideline involves a "commitment to innovation and constant experimentation." One of the major criticisms of the Washington Consensus is its complacency. Ramo argues that there is no perfect solution, and that the only true path to success is one that is dynamic, as no one plan works for every situation.
The second guideline states that Per Capita Income
(GDP/capita) should not be the lone measure of progress. Rather, Ramo feels that the sustainability of the economic system and an even distribution of wealth, along with GDP, are important indicators of progress.
The third guideline urges a policy of self-determination, where the less-developed nations use leverage to keep the superpowers in check and assure their own financial sovereignty. This includes not only financial self-determination, but also a shift to the most effective military strategy, which Ramo suggests is more likely to be an asymmetric strategy rather than one that seeks direct confrontation. Unlike the Washington Consensus, which largely ignored questions of geo-politics, Ramo argues—particularly in the Chinese context—that geo-politics and geo-economics are fundamentally linked.
professor Arif Dirlik
, a "notable specialist in Chinese and in intellectual history," who wrote the paper Beijing Consensus: Beijing "Gongshi." Who Recognizes Whom and to What End. Although Dirlik is intrigued by the concepts and philosophy of Ramo's Beijing Consensus, he says that Ramo's plan is a "Silicon Valley model of development" that ignores the fact that the exploitation of China's labor force by foreign countries was a major part of the Chinese development. Ultimately though, and despite other criticism, Dirlik concludes that the Beijing Consensus does serve an important goal: "The most important aspect of the Beijing Consensus may be an approach to global relationships that seeks, in multinational relationships, a new global order founded on economic relationships, but which also recognizes political and cultural difference as well as differences in regional and national practices within a common global framework."
Washington Consensus
The term Washington Consensus was coined in 1989 by the economist John Williamson to describe a set of ten relatively specific economic policy prescriptions that he considered constituted the "standard" reform package promoted for crisis-wracked developing countries...
of market-friendly policies promoted by the IMF
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
, World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
and U.S. Treasury, often for guiding reform in developing countries. While there is no precise definition of the Beijing Consensus, although many have laid out plans, the term has evolved into one describing alternative plans for economic development in the underdeveloped world, so-named as China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
is seen as a potential model for such actions.
Joshua Cooper Ramo
The term's birth into the mainstream political lexicon was in 2004 when the United KingdomUnited Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
's Foreign Policy Centre published a paper by Joshua Cooper Ramo
Joshua Cooper Ramo
Joshua Cooper Ramo was a former senior editor and foreign editor of Time magazine and later Managing Director at Kissinger Associates, the consulting firm of former U.S. Secretary of State Henry Kissinger...
titled The Beijing Consensus. http://www.xuanju.org/uploadfile/200909/20090918021638239.pdf In this paper, he laid out three broad guidelines for economic development. Ramo was a former senior editor and foreign editor of Time
Time (magazine)
Time is an American news magazine. A European edition is published from London. Time Europe covers the Middle East, Africa and, since 2003, Latin America. An Asian edition is based in Hong Kong...
magazine and later a partner at Kissinger Associates
Kissinger Associates
Kissinger Associates, Inc., founded in 1982, is a New York City-based international consulting firm, founded and run by Henry Kissinger, and Brent Scowcroft...
, the consulting firm of former U.S. Secretary of State Henry Kissinger
Henry Kissinger
Heinz Alfred "Henry" Kissinger is a German-born American academic, political scientist, diplomat, and businessman. He is a recipient of the Nobel Peace Prize. He served as National Security Advisor and later concurrently as Secretary of State in the administrations of Presidents Richard Nixon and...
.
The first guideline involves a "commitment to innovation and constant experimentation." One of the major criticisms of the Washington Consensus is its complacency. Ramo argues that there is no perfect solution, and that the only true path to success is one that is dynamic, as no one plan works for every situation.
The second guideline states that Per Capita Income
Per capita income
Per capita income or income per person is a measure of mean income within an economic aggregate, such as a country or city. It is calculated by taking a measure of all sources of income in the aggregate and dividing it by the total population...
(GDP/capita) should not be the lone measure of progress. Rather, Ramo feels that the sustainability of the economic system and an even distribution of wealth, along with GDP, are important indicators of progress.
The third guideline urges a policy of self-determination, where the less-developed nations use leverage to keep the superpowers in check and assure their own financial sovereignty. This includes not only financial self-determination, but also a shift to the most effective military strategy, which Ramo suggests is more likely to be an asymmetric strategy rather than one that seeks direct confrontation. Unlike the Washington Consensus, which largely ignored questions of geo-politics, Ramo argues—particularly in the Chinese context—that geo-politics and geo-economics are fundamentally linked.
Arif Dirlik
One critic of Ramo's plan is University of OregonUniversity of Oregon
-Colleges and schools:The University of Oregon is organized into eight schools and colleges—six professional schools and colleges, an Arts and Sciences College and an Honors College.- School of Architecture and Allied Arts :...
professor Arif Dirlik
Arif Dirlik
Arif Dirlik is a historian most known for his works about 20th century Chinese history. Dirlik received a BSc in Electrical Engineering at Robert College, Istanbul in 1964 and a PhD in History at the University of Rochester in 1973.From 1971 until 2001 he stayed as a member of the History faculty...
, a "notable specialist in Chinese and in intellectual history," who wrote the paper Beijing Consensus: Beijing "Gongshi." Who Recognizes Whom and to What End. Although Dirlik is intrigued by the concepts and philosophy of Ramo's Beijing Consensus, he says that Ramo's plan is a "Silicon Valley model of development" that ignores the fact that the exploitation of China's labor force by foreign countries was a major part of the Chinese development. Ultimately though, and despite other criticism, Dirlik concludes that the Beijing Consensus does serve an important goal: "The most important aspect of the Beijing Consensus may be an approach to global relationships that seeks, in multinational relationships, a new global order founded on economic relationships, but which also recognizes political and cultural difference as well as differences in regional and national practices within a common global framework."
Further Reading
- Ramo, Joshua The Beijing Consensus (Foreign Policy Centre, May 2004)
- Huang, Yasheng, Rethinking the Beijing Consensus (Asia Policy, January 2011)
See also
- Asian CenturyAsian CenturyThe Asian Century is a term used to describe the belief that, if certain demographic and economic trends persist, the 21st century will be dominated by Asian politics and culture, as the 20th century is sometimes referred to as the American Century, and the 19th century the British...
- Development EconomicsDevelopment economicsDevelopment Economics is a branch of economics which deals with economic aspects of the development process in low-income countries. Its focus is not only on methods of promoting economic growth and structural change but also on improving the potential for the mass of the population, for example,...
- GlobalismGlobalismGlobalism can have at least two different and opposing meanings. One meaning is the attitude or policy of placing the interests of the entire world above those of individual nations...
- Mumbai ConsensusMumbai ConsensusThe Mumbai Consensus is a term used to suggest the potential for the spread in global influence of India, with a unique and people-centric approach to managing its economy which may be taken up continually by other developing nations in time...
- Seoul Development ConsensusSeoul Development ConsensusThe Seoul Development Consensus for Shared Growth is a set of principles and guidelines set up to assist the G20 nations and other global actors in working collaboratively with less developed countries in order to boost their economic growth and to achieve the UN's Millennium Development Goals...
- Washington ConsensusWashington ConsensusThe term Washington Consensus was coined in 1989 by the economist John Williamson to describe a set of ten relatively specific economic policy prescriptions that he considered constituted the "standard" reform package promoted for crisis-wracked developing countries...