The Future of Domestic Capital Markets in Developing Countries

Foreword

 Foreword Limited access to capital presents a critical challenge to growth and stability . Well-functioning markets ensure that corporations efficiently mobilize capital for growth and that markets price risk well, so that valuable projects will be financed. Most important, countries that do not have access to equity capital face higher costs of capital, often leading to segmentation of markets. In this context, the World Bank, International Monetary Fund, and Brookings Institution organized a global conference focusing on the future of domestic capital markets in developing countries . Participants addressed the challenges that developing and developed country markets face from globalization, technological changes, and weaknesses of corporate governance. This conference is the fifth in an annual Financial Markets and Development series, which brings together senior policymakers, financial executives, and researchers each year to address cutting-edge issues facing the financial development community. This annual program aims to foster an ongoing dialogue and exchange of complementary perspectives across regions and between emerging and developed economies. Many individuals contributed to the success of the conference and to this volume, including the formal discussants and authors of the papers contained here. Special thanks are also owed to Colleen Mascenik at the World Bank, who, along with the editors, helped organize the conference. In addition, Alicia Jones and Sandip Sukhtankar at Brookings provided valuable assistance throughout the planning and organizing of the conference . Christopher Lyddy provided critical assistance in drafting the summaries of the panel discussions that appear in the volume. We also acknowledge the editorial, proofreading, and indexing assistance of Elizabeth Forsyth, Tanjam Jacobson, Inge Lockwood, and Enid Zafran. Funds for the conference were generously supplied by the World Bank Group, the International Monetary Fund, and the Brookings Institution. STROBE TALBOTT President, Brookings Institution CESARE CALARI Vice President, Financial Sector The World Bank STEFAN INGVES Director, Monetary and Exchange Affairs Department International Monetary Fund   ...