Financial Intermediation and Policy-Based Lending: Policy Recommendations for Latin America and the Caribbean
By Antonio Vives, Kim B. Staking (03/97, IFM108-1997, En) See also Infrastructure and Financial Markets
This article discusses the conditions under which policy-based lending may further economic development within a Latin American and Caribbean context, given the current state of financial markets in most countries of the region. The discussion is intended as a conclusion to the articles presented at the Conference on Policy Based Finance and Alternatives for Financial Market Development. It nevertheless reflects more the opinion of its authors than a consensus. The Conference itself did not attempt to reach such a consensus and at its conclusion many of the participants continued to maintain divergent positions with regards to several of the key issues. In some degree, this article is an attempt at a compromise; a position that does not recommend a formal adoption of policy based finance as it exists in East Asia, but rather proposes the incorporation of the universal lessons from the East Asian experience into the more market-based reforms currently under way in Latin America and the Caribbean.
This article was originally published in the book Policy-Based and Market Alternatives: East Asian Lessons for Latin America and the Caribbean, Section Four; pp. 163-182, June 1997, by the Inter-American Development Bank. Copyright Inter-American Development Bank, 1997.
Last updated: 05/08/07
