The Barcelona Development Agenda is a statement of development principles formulated as a response to the prevailing Washington Consensus development model. Resulting from the collaboration of economists from both developing and developed countries at the 2004 Universal Forum of Cultures in Barcelona, Spain, the Barcelona Development Agenda outlines seven lessons learned from previous policy failures and successes, and presents them as priorities for future economic reforms. The principles emphasize a balance of market and government economic roles, flexible economic tools, and an increased role for sustainability and equity in governance.
Background
The 2004 Universal Forum of Cultures met in Barcelona, Spain from May 9 to September 26, 2004, to promote human rights, diversity, peace, and sustainable development. On the last two days of the Forum, economists from organizations around the world met to discuss the impacts of economic policies, especially global policies, on developing countries. The opening statement of the agenda laid out the discussion of the meeting:
Based on trends and concerns the participants noted in international development policy, the agenda outlined principles for policy implementation that reflected both widely accepted principles of macroeconomics, such as the importance of market development, and improved understanding of challenges and solutions in developing markets, such as capital inequity and environmental impacts.
Agenda's observations regarding current policy
Three encouraging trends
Gains in human rights in many developing countries: Though there are still examples of rights violations in many places around the globe, there is a general and increasing trend of recognition and implementation of human rights and democratic principles worldwide. Additionally, though human rights records are not always indicative of the strength of an economy, development and human rights causes are often similar. Rapid growth in several countries that has pulled millions of people out of poverty: Development policies already in place have managed to increase the income of millions of people in some of the most highly populated developing countries on the planet, including China and India. While successful development paths are highly variable depending on the particular circumstances of each country, the right combination of policies and resources has the capacity to affect rapid change. Recognition of the importance of macroeconomic stability: Though some economic adjustment policies have failed to produce stabilized economies, the consensus is now that macroeconomic stability (e.g., reduced inflation) is necessary for successful implementation of other development policies, as well as accelerating growth.
Three reasons for concern
Recurring systemic financial crises affecting developing states: The application of Washington Consensus-style free markets and financial arrangements has not been beneficial for all developing states that have adopted them. The economies and financial systems of several countries that adopted them, particularly in Latin America, stagnated or suffered declines. It was presumed until this point that western-style policies were applicable across a broad spectrum of political situations, but assumptions made by these policies, especially in reference to markets and information flow, were flawed. Lack of sustained growth in many regions that adopted reforms: In addition to financial difficulties experienced by some developing countries after adopting some economic reforms, other economies experienced growth which subsequently stagnated. Persistence and growth of distributional inequalities in many developing states: When growth has occurred in developing countries, it is often disproportionately benefits wealthier households which makes equitable development more difficult. Not only does inequality reduce savings rates, promote inefficiency, and consolidate power, but it has the potential to destabilize social systems.