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By Andy Sumner, Meera Tiwari (auth.)

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Second, a (related) shift towards developing countries defining their own policies via the introduction of Poverty Reduction Strategy Papers (PRSPs): in June 2005, the G8 communiqué declared, ‘developing 28 After 2015: International Development Policy at a Crossroads countries… need to decide, plan and sequence their economic policies to fit their own development strategies’ (G8, 2005:2) and ‘explicit endorsement of the PRSP by the Executive Boards of the two institutions [the IMF and the World Bank] is no longer required for PRGF [Poverty Reduction Growth Facility] lending’ (IMF, 2005:1).

Privatisation, liberalisation, and macro-stability… a set of policies aimed … minimizing the role of government (Stiglitz, 2002:1). 2). 2 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Williamson’s Original Washington Consensus Fiscal Discipline Public Expenditure Prioritisation Tax Reform Financial Liberalisation Exchange Rates Liberalisation Trade Liberalisation Foreign Direct Investment Liberalisation Privatisation Deregulation Property Rights Establishment Source: Williamson (1993). 26 After 2015: International Development Policy at a Crossroads financial institutions became a wholesale attempt to dismantle the developmental state (Kanbur, 1999; Stiglitz, 2006).

What has been happening to inequality? If all of these three have become less severe, then beyond doubt this has been a period of development for the country concerned… …If one or two of these central problems have been growing worse, especially if all three have, it would be strange to call the result ‘development’, even if per capita income has soared (Seers, 1969:24). Dudley Seers (1969) launched the paradigm shift to broader understandings of development beyond GDP per capita and into ‘basic needs’.

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