Local capital market development responds to the need to reduce the risk of financial crises that result from an excessive reliance on external borrowing -- for example, to avoid foreign exchange risk, reduce contagion, and decrease short-term external borrowing. In fact, as financial crises dwarf the role of financial intermediation, the problems of asymmetric information become even more severe, leading to greater public mistrust of financial institutions.
The contributors in Focus on Capital tackle various aspects of developing Latin American capital markets. Macroeconomic and structural policies, accounting practices and standards, bond market development, market infrastructure, derivatives markets, corporate governance, ethics, human capital, and regional integration all play a role. One of the shortcomings of many strategies for capital market development -- more important than getting the sequencing wrong -- is failing to understand the links between the various components and the need for an overall strategy as well as plans for each component. Focus on Capital analyzes the status of the markets in Latin America and identifies the technical, political, and financial challenges to building vibrant capital markets and increasing the efficiency benefits of regional economic and financial integration.
About the Author
Kenroy Dowers is an investment officer at the Inter-American Development Bank and Pietro Masci is chief of the IDB's Infrastructure and Financial Markets Division.
Table of Contents
|About the Authors||ix|
|Chapter 1||Developing a Strategy for Reforming Capital Markets in Latin America and the Caribbean||3|
|Part II.||Factors Affecting the Development of Capital Markets|
|Chapter 2||Globalization, Technology, and Regulation in Capital Markets: Strategies for Latin America and the Caribbean||37|
|Chapter 3||Internet Technology and the Development of Securities Markets||65|
|Chapter 4||The Impact of the Macroeconomic Environment on Capital Markets in Emerging Latin American Economies||91|
|Chapter 5||Institutional Investors and Capital Market Development||119|
|Part III.||Issues in the Implementation of Capital Market Strategies|
|Chapter 6||Promoting Regional Capital Market Integration||159|
|Chapter 7||Accounting and Auditing Standards||213|
|Chapter 8||Enhancing Market Infrastructure in Emerging Economies||239|
|Chapter 9||Demutualization of Exchanges as a Strategy for Capital Market Regulatory Reform||269|
|Chapter 10||Developing Bond Markets: A Comprehensive View||295|
|Chapter 11||Designing a Derivatives Complement to Cash Markets in Developing Countries||335|
|Chapter 12||Access to Financing for Small and Medium Enterprises||389|
|Chapter 13||Developing Capital Markets in Latin America and the Caribbean: Ethical Issues||415|
|Chapter 14||Corporate Governance and Capital Market Development: Recent Experiences in Latin America||437|
|Chapter 15||Human Capacity Development for Capital Market Professionals in Latin America and the Caribbean||463|
|Chapter 16||Pragmatic Issues in Capital Market Development in Emerging Economies||487|