Overview The Washington Consensus (WC) once promised macro‑stability, growth and a one‑size‑fits‑all solution for crisis‑hit economies. Formulated by John Williamson in 1989, its ten “commandments” emphasized fiscal discipline, liberalisation, privatisation and deregulation. Three decades later, successive crises and geopolitical shifts have exposed its shortcomings, prompting calls for a new, more nuanced policy framework. Key Developments The Asian financial crisis (1997) and the global financial crisis (2008) revealed systemic flaws in the WC’s liberal‑market assumptions. WTO ministerial failures in Seattle (1999) and Cancún (2003) highlighted the growing rift between developed and developing nations. Structural reforms under the WC rejected industrial policy , limiting developing countries’ ability to nurture domestic industries. Conditionalities imposed by the IMF and the World Bank sparked widespread protests across the Global South. Emergence of a “post‑Washington consensus” that stresses public accountability, safety nets and redistribution, alongside a Beijing‑style counter‑narrative of state‑led growth. Recent protectionist moves, exemplified by the Trump administration’s tariff regime, signal a re‑politicisation of trade and industrial policy. Important Facts • The WC’s ten pillars included fiscal discipline, tax reform, interest‑rate liberalisation, competitive exchange rates, trade liberalisation, FDI openness, privatisation, deregulation, and property‑rights protection. • SAPs were criticised for worsening inequality in Africa and Latin America. • WTO rules such as TRIMs and TRIPS limited policy space for industrial development. • Nations that succeeded without adhering to the WC (e.g., South Korea, Taiwan, Singapore) relied on strong state‑led industrial policy . UPSC Relevance Understanding the rise and decline of the WC is vital for GS‑III (Economy) and GS‑II (International Relations). Aspirants should link the WC to: Debt crises and the role of the IMF and World Bank . Trade negotiations and the WTO’s impact on developing economies. The shift towards strategic autonomy, industrial policy and climate‑responsive growth – themes in contemporary policy debates. Way Forward Policymakers need a mixed‑tool approach rather than a dogmatic template. Key steps include: Retaining fiscal prudence while channeling public investment into education, health, infrastructure and green technology . Designing industrial policy that protects infant industries yet complies with WTO norms. Embedding digital trade frameworks and climate‑resilience mechanisms into trade agreements. Balancing openness with strategic safeguards, acknowledging that “what protects national interest” now guides trade and investment decisions. Ensuring policy choices are context‑sensitive, reflecting domestic capacities, geopolitical realities and social equity. In sum, the era of a universal liberalisation mantra has ended; the challenge for India and other nations is to craft a nuanced, inclusive growth model that blends market efficiency with state‑led strategic interventions.