Which of the following might be a Washington Consensus policy recommendation to a less-developed country that would be opposed by a supporter of import substitution policy?
A) investing heavily in domestic agriculture
B) raising tariffs to reduce foreign imports
C) reducing state power
D) promoting private domestic industry

Question

Quizplus · Accepted Answer

The Washington Consensus advocates for reducing state power and promoting free market policies such as privatization, deregulation, and liberalization of trade. In contrast, import substitution policies involve government intervention and protectionism to promote domestic industries and reduce reliance on foreign imports. Therefore, a recommendation to reduce state power would be opposed by a supporter of import substitution policy. Options A, B, and D would all be in line with import substitution policies as they involve promoting domestic industries and reducing reliance on foreign imports.

Which of the Following Might Be a Washington Consensus Policy