Final answer:
The Washington Consensus was designed to promote economic stability and growth in poor countries by adopting policies such as promoting fiscal balance, liberalizing trade, and attracting foreign direct investment, but has received criticism for its impact on developing nations and prioritizing foreign creditors' interests.
Step-by-step explanation:
In "Malawi Versus the World Bank," Patten notes that the World Bank and International Monetary Fund (IMF), along with the approval of the U.S. Treasury, adopted a policy framework known as the Washington Consensus. This consensus was designed to promote economic stability and structural adjustments in poor countries, with aims such as promoting fiscal balance, sound macroeconomic indicators, increased international trade, and overall growth and development. The Washington Consensus focused on policies like reducing trade deficits, implementing austerity measures, decreasing budget deficits, cutting public services, focusing on resource extraction, and attracting foreign direct investment. These measures were associated with neoliberalism, which emphasized liberalizing trade, deregulating and privatizing industries, and safeguarding property rights.
Despite the goals of economic stability and development, the policies recommended by the Washington Consensus have been critiqued for their impact on developing countries. Critics like Joseph Stiglitz argue that the IMF's conditions, such as increased privatization and austerity measures, often benefit foreign creditors at the expense of the poorer population in the countries seeking assistance.