Latin American Capital Markets

206 RUBEN LEEmore, the process of harmonization is frequently used as a protectionist anticompetitivedevice.Institutional FrameworkThis section contains recommendations for the institutional framework that should becreated in order to best address the questions noted above.Two aspects of the frameworkare described: some attributes it should have and its institutional structure.AttributesFor the strategy to have a practical chance of success, it will require the followingcharacteristics:Structure• High-level political support• Ambitious but realistic targets• Widespread legitimacy• Initial and continuing momentum• Adequate financing• Flexibility.The best institutional framework would be to establish a Committee of Wise Mencomposed of no more than 10 members, with an appropriate mandate to promoteregional capital market integration. This committee should be established in an appropriateforum by the highest political levels possible, ideally at the level of the ministerof finance or economics. It is crucial that the members of the committee be ofthe highest possible reputation in the region's financial markets, that they come fromthroughout the region, that they be willing to work hard on the committee, and thatthey be representative of different constituencies in the markets.The mandate of thecommittee should be to pose and answer the key questions noted above.The Committee of Wise Men would have the following benefits: a reputationfor independence and expertise that is difficult to match in other institutional contexts;its own agenda and recommendations, without fear of political consequences;independence from capture by any particular constituency; and the ability to be flexibleand work fast. It is recommended that the committee employ the following proceduresand attributes:Copyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub