Latin American Capital Markets

CHAPTER 15Human Capacity Developmentfor Capital Market Professionalsin Latin America and the CaribbeanCatherine Chandler-CrichlowThe process of financial sector development involves a complex mix of a number offactors, such as institutional strengthening, identification of the products and servicesbest suited to a domestic market, and a culture of savings and asset accumulation. Butno single factor is as vital to this process as the development of the human capitalbase needed for sustained growth in the sector Outreville (1999) shows that there isa positive correlation between human capital development and growth in financialsectors. Furthermore, there is increasing recognition internationally that, for sustainedgrowth in domestic economies, greater focus needs to be placed on developing thehuman resource base to ensure that workers and professionals have the skills, knowledge,and critical thinking abilities to be productive in the workplace (Becker 1993;OECD 1998; UNDP 1996).Considering the diversity of natural resources, cultural groupings, politicalregimes, and educational systems in Latin America and the Caribbean, it is imperativethat a human capital agenda be implemented that provides professionals with theskills, knowledge, and competencies they need to help achieve sustained economicgrowth. Capital markets in Latin America and the Caribbean span a wide spectrum,from sophisticated systems with multiple stock exchanges and active trading volumesto others that are still in an embryonic phase. In addition to the structural nuance ofthese capital markets, there continues to be tremendous interest by foreign investorswho wish to be part of the exploration of the natural resources in Latin America andthe Caribbean.Models of human capital development in the region seem to follow a similarpattern of capital market development, with differences in the level of sophisticationin approaches. In her paper on human capital development, Hunter (2000) finds thatCopyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub