Abstract
From late 1970s, with the change of dominant development
paradigm, most countries followed Washington Consensus policy.
According to it, with no roles for states, markets increase economic
efficiency but practically countries which followed these policies
encountered more economic, social and political problems due to lack
of necessary institutional infrastructures.
In this condition, revisionary thoughts called Post-Washington
Consensus gradually appeared in economic development literature.
This approach was developed as a result of Washington Consensus
weaknesses and experiences of different developing countries
especially Eastern Europe and East Asian countries. Consequently, the
new economic and social development paradigm was founded
according to which, state should have an important role in economic
reforms. Therefore, economic transition from state oriented economy to
market economy without considering the necessary prerequisites and
institutional capacities will result in volatility and instability in
economy.
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