Latin American Capital Markets

HUMAN CAPACITY DEVELOPMENT 465For the purposes of this chapter; capital markets are defined as a sector thatexists in a broader social context.The chapter assumes that in a specific country, thedomestic environment has implicit bureaucracies and perspectives on human development,which affect the growth of any sector in that jurisdiction. As capital marketsin Latin America and the Caribbean span a broad spectrum of complexity, the chapterseeks to answer the specific question: What is the current level of investment inhuman capital development in the capital markets of Latin America and the Caribbean?Here investment is defined as the current infrastructure that is in place and notthe financial outlay that has been made in establishing its development. While thereare many facets to human capital development, the chapter focuses only on the elementsof workforce development and sector governance.The indicator of workforcedevelopment used here is the availability of training programs developed by and usedin the region for professionals in the capital market sector The indicators of sectorgovernance examined are the presence of regional and/or professional associationsand sector-specific training institutions in the region.The chapter describes two human capacity elements in three developed capitalmarkets: Canada, the United Kingdom, and the United States. A similar analysiscompares the capital markets in Latin America and the Caribbean with countries inOceania (Australia, Fiji, New Zealand, Papua New Guinea, and Vanuatu).A Framework for Human Capital DevelopmentFrom contemporary literature, the term human capital is used to characterize thebroader skills, knowledge, and abilities of individuals irrespective of the specific rolesthey play in a given society. This perspective focuses on the investment made to developa literate, marketable individual who can make a contribution to the sustainedgrowth of a country. In this chapter the individual is defined as a professional in thecapital market sector In considering the development of workers and professionals ofa given sector, there is a need to recognize that there are some areas of expertisethat would be unique to that sector and in which participants in that sector need tobe trained. For example, having an in-depth understanding of the dynamics of flightshould be an aim of all workers and professionals in the aerospace industry, but notso for individuals in the health care field.The public places its trust in pilots, surgeons,teachers, lawyers, and other specialists because these professionals typically have developeda unique skill set beyond basic literacy. So, too, it should be with capital markets.A sector-based approach to human capital development would therefore needto reflect the unique areas of learning that are critical to participants in that field.Copyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub