Latin American Capital Markets

OVERVIEWxxiiiregulation, which is more of an art than a science and requires continuous attentionand revision.Human capital is essential for making reforms work Without dedicated andskilled professionals, no system can function and prosper. The challenge for emergingmarket countries is not only to invest in human capital but also to mitigate therisk of losing trained people, because they may be attracted elsewhere. Chapter 15offers an innovative model for human capacity building that is specific to capital marketsin Latin American and Caribbean economies. On the basis of an analysis of theregion's needs, the chapter spells out the factors that need to be considered in generatingan agenda to improve human capacity building.Part IV has two main objectives: to synthesize the book's main findings andto identify the practical issues that must be considered in building capital marketstrategies.The conclusion provides guidance for the countries of the region, includingthe roles of government, the private sector, and multilateral development banks. Inthis sense, the conclusion articulates practical measures to facilitate capital market developmentand to strengthen the roles of the relevant players in Latin America andthe Caribbean.What Is Next?The various chapters of the book constitute individual areas that need to be tackledto attain the goal of developing a capital market in an emerging economy. One of theshortcomings of many strategies for capital market development—more than gettingthe sequencing wrong—is failing to fully understand the links between the variouscomponents and how the development of efficient capital markets requires an overallstrategy as well as plans for each component. Macroeconomic and structural policies,accounting practices and standards, bond market development, market infrastructure,derivatives markets, corporate governance, ethics, human capital, regionalintegration, and technology are not isolated mechanisms. Instead, they are all partsof an integrated approach that must be understood, designed, orchestrated, implemented,and monitored. Policymakers need to follow this whole approach synergisticallyto ultimately strengthen the institutions that support the functioning of capitalmarkets. Ideally, the parts of this whole together compose a unified matrix of policiesthat governments can pursue.This matrix can guide the actions of governments andstakeholders as well as frame the support that international financial institutions canoffer to meet the goal of building a better financial system.Copyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub