Financial systems and development

tion "Risks and costs of finance" draws primarily ports, and contributions from operational staff.
on the background paper by Mayer and on Balten- Atiyas 1989 and the background papers by Alsperger
and Devinney 1985, North 1987, Tobin Sultan, Antoniades and Kouzionis, Larrain,
1984, and Williamson 1985. The section "Govern- Montes-Negret, Sheng, Silverberg, Sundaravej
ment intervention" draws primarily on Bernanke and Trairatvorakul, and Tenconi provided informa-
1983 and Kaufman 1988. Box 2.1 is based on ma- tion on specific countries. The discussion of finanterial
supplied by Alan Gelb and Gerard Caprio. cial distress and its consequences draws heavily on
Jacques Polak provided useful comments on the Hinds 1988. The discussion of financial restrucchapter.
turing draws on the background paper by de Juan
and an unpublished paper by Alfredo Thorne.
Chapter 3
Veneroso 1986 and de Juan 1987 were also helpful.
Box 5.3 is based on de Juan 1987, and Box 5.6 is
The discussion of the historical evolution of finan- based on material prepared by Jorge Martins.
cial systems in high-income countries draws extensively
on Born 1983; Cameron 1967 and 1972; Chapter 6
Goldsmith 1969, 1985, and 1987; and Kindleberger
1978 and 1984. For developing countries prior to This chapter draws extensively on the Bank's operthe
1940s, the discussion is based mainly on Sayers ational experience with financial institutions and
1952, Crick 1965, Newlyn and Rowan 1954, Okigbo systems in developing countries. The discussion of
1981, Diaz-Alejandro 1982 and 1985, Joslin 1963, property rights, contracts, economic institutions,
Young 1925, and Fetter 1931. The discussion of and legal systems draws on Williamson 1985,
postwar developments in high-income countries is North 1981, Furubotn and Pejovich 1974, Posner
based mainly on Vittas 1978, Bank for International 1977, von Mehren and Gordley 1977, and the Inter-
Settlements 1986, Watson and others 1988, and Su- national Encyclopedia of Comparative Law (Internazuki
and Yomo 1986. Box 3.2 was drafted by Paul tional Association of Legal Science). The discus-
Beckerman. Charles Kindleberger provided de- sion of company law and corporate governance
tailed comments on the chapter.
draws on Grossfeld and Ebke 1978 and Bacon and
Brown 1977. Dalhuisen 1986 is the main source on
Chapter 4
bankruptcy laws. The section on accounting draws
on Nobes and Parker 1985 and a background note
This chapter draws heavily on World Bank and by Maurice Mould. The discussion of banking leg-
IMF sources. The section "Government interven- islation, regulation, and supervision draws on the
tion in credit allocation" also benefited from Vir- background papers by Effros and Polizatto. Box 6.1
mani 1982; Diamond 1957 and 1968; Levitsky and draws on Song 1983, Box 6.2 on Feder and others
Prasad 1987; Levitsky 1986; Hanson and Neal 1988, and Box 6.3 on Iqbal and Mirakhor 1987. Box
1987; Nair and Filippides 1988; Von Pischke, Ad- 6.4 was drafted by Akhtar Hamid, Box 6.5 by
ams, and Donald 1983; Adams, Graham, and Von Harry Snoek, and Box 6.6 by the Bank's Legal De-
Pischke 1984; and Gordon 1983. The section "Mac- partment. Ibrahim Shihata, Ahmed Jehani, Hans
roeconomic policies and financial development" Jurgen Gruss, and other staff of the Bank's Legal
draws on Hanson and Neal 1987, Easterly 1989, Department and Robert C. Effros and Harry Snoek
Fischer 1986, Jud 1978, Hinds 1988, and Polak of the IMF provided valuable comments on the
1989. Box 4.3 is based on Vogel 1984a. Box 4.4 was chapter.
drafted by Vincent Rague and Moina Varkie, Boxes
4.5 and 4.8 by Paul Beckerman, and Box 4.6 by Chapter 7
Patrick Honohan. Box 4.7 is based on Cole and
Park 1983 and unpublished material by Jia-Dong This chapter draws on a wide range of sources,
Shea and Ya-Hwei Yang and by Juro Teranishi. Al- including those cited for earlier chapters. The disberto
Musalem provided useful comments on the cussion of business finance draws on the backchapter.
ground paper by Mayer and on Aoki 1984, Cable
1985, Corbett 1987, Edwards 1987, and others. The
Chapter 5
household finance discussion draws on the background
papers by Buckley and Renaud. The dis-
The information in this chapter comes primarily cussion of institution building draws on the operafrom
World Bank databases, financial sector re- tional experience of the Bank and on the
134