Financial Markets and Development
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Level: Undergraduate, Graduate
Division: The New School for Public Engagement
School: Milano School of International Affairs, Management, and Urban Policy
Department: International Affairs
Course Number: NINT 5318
Course Format: Lecture
Location: NYC campus
Permission Required: No
- International Affairs
- Economic Development
- Social Development
Most financial activity in developing countries is undertaken through domestic financial institutions (e.g., commercial banks, insurance companies, development finance institutions) and to varying degrees markets (e.g., bonds, stocks, derivatives) and informal arrangements (e.g., families, money lenders, rotating savings and credit associations). National policy makers have to be concerned about how well the financial sector mobilizes savings, extends credit, provides insurance and undertakes payment transactions. They must also ask development questions like how well does the sector support economic growth (favor the "best" investments)? Is it "inclusive" (does it provide services to the poor as well as the rich)? Is it subject to crises (how well are risks handled)? Can it be whipsawed from abroad (how susceptible is it to contagion from foreign crises, a very current worry)? Countries have followed different paths to financial sector development, with more and less government involvement directly and via regulation, and with better and worse advice from foreign aid donors and financial sector investors. Not a surprise, countries have had more and less successful outcomes. The course tries to understand why and what the implications might be for improved policies for development.