Financial Reform. Theory and
Practice
This book examines the
analytical basis and practical experience of financial reforms in a number of primarily
developing countries. A key finding is that financial reforms have led to improved
resource allocation - an a priori belief not hitherto tested. This finding is consistent
with the argument that efforts in developing countries to maximize efficiency resource
utilization cannot be underestimated in their importance. There are three key lessons that
suggest the crucial nature of managing the process rather than adopting a laissez-faire
approach. First, more successful reform must take account of information capital; second,
initial conditions in balance sheets, human and information capital, and incentive systems
are fundamental in determining how to go about reform; and third, that different sequences
of reforms can be tolerated and, with certain preconditions, do well.
Contributors: Gerard Caprio
Jr., Mark Gertler, Andrew Rose, Fabio Schiantarelli, Izak Atiyas, John Harris, Andrew
Weiss, James Hanson, Hasan Ersel, Dimitri Margaritis, Dean Hyslop, David Rae, Sang-Woo
Nam, John Chant, Mari Pangestu, Zainal Aznam Yusof, Awang Adek Hussin, Ismail Alowi, Lim
Chee Sing, Sukhdave Sing, Salvador Valdes-Prieto.
Contents
1. Introduction: motivation
for the study Gerard Caprio Jr
Part I. Reforming Finance:
Approaches and Importance
2. Finance, public policy and
growth Mark Gertler and Andrew Rose
3. Banking on financial
reform? Gerard Caprio Jr.
4. Credit where it is due? Fabio
Schiantarelli, Izak Atiyas, Gerard Caprio Jr., John Harris, and Andrew Weiss
Part II. The Reform
Experiences
5. An overview of financial
reform episodes Izak Atiyas, Gerard Caprio Jr. and James Hanson
6. The impact of financial
reform: the Turkish experience Izak Atiyas and Hasan Ersel
7. Financial policy reform in
New Zealand Dimitri Margaritis, Dean Hyslop and David Rae
8. Korea's financial reform
since the early 1980s Sang-Woo Nam
9. An assessment of financial
reform in Indonesia, 1983-90 John Chant and Mari Pangestu
10. Financial reform in
Malaysia Zainal Aznam Yusof, Awang Adek Hussin, Ismail Alowi, Lim Chee Sing, and
Sukhdave Sing
Part III. Liberalizing the
Capital Account and Domestic Financial Reform
11. An open capital account James
Hanson
12. Financial liberalization
and the capital account: Chile, 1974-84 Salvador Valdes-Prieto
13. Policy issues in
reforming finance: lessons and strategies Gerard Caprio Jr., Izak Atiyas and James A.
Hanson.
470 pages