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But the willpower of the world-wide market will absolutely not fix corruption and incompetence. Rodrik writes: Advocates of the Washington Consensus-regardless of whether in its primary or expanded variations-presented it as excellent economics.
For them, the insurance policies mirrored what sound economics teaches: Totally free markets and level of competition enable the efficient allocation of scarce assets …. As the importance of institutions sank in, due to the fact of the lousy response of a lot of economies to Washington Consensus insurance policies, reform efforts expanded in their direction.
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