Latin American Capital Markets

482 CATHERINE CHANDLER-CRICHLOWThe third challenge is to harmonize human capital investment in the region.Diversity in languages, political systems, social and cultural norms, risk-averse behaviorof the private sector and emphasis on developing human capital all come together inLatin America and the Caribbean to create one major barrier: bureaucracy. Yet thesedifferences are the factors that drive the introduction of an approach to harmonizingthe capital markets of the region. No one nation can provide all the training anddevelopment programs, information systems, and physical infrastructure needed tocreate efficient capital markets.EnablersResearch in education shows that peer learning is one of the most powerful instructionalstrategies for adults. Peers are able to connect intellectually, solve problems asa group, develop plans to deal with common challenges, or be catalysts for change. Itis this aspect of human capital development that could most easily be established inan emerging market. Whether professionals meet at seminars or conferences, the mutualsharing of information is a powerful process for the development of a sector Increaseddialogue among professionals across Latin America and the Caribbean wouldserve as an enabler toward identifying the training needs of the different groups anddefining financing models for the sectorThe establishment of regional professional bodies would further enable humancapital development. There are some concepts that span all professional groups in capitalmarkets. Areas such as corporate governance, accounting standards and practices,reliance on external auditors, and intrasector information sharing should be importantto all groups. Associations could also serve to reduce inconsistencies in policies andpractices within a sector The establishment of professional associations could facilitatediscussion within and across professions and would provide the information basethat could be used to direct the investment of limited financial resources to producemaximum benefits for the sector Being mindful of the fact that the number of professionalsin some countries might be small, consideration should be given to establishingcommon regional groups that would influence the standards of practice across alljurisdictions in the region.The creation of strategic alliances would be another enabler A proverbialmaxim of not reinventing the wheel is applicable to capital markets in Latin Americaand the Caribbean. Although the region lacks institutions that can deliver specializedtraining to professions in the sector; the acquisition of such programs could be easilymanaged through the establishment of strategic alliances with academic institutions inthe region or private sector firms from other jurisdictions. This strategy would facili-Copyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub