Financial Transition in ECA Countries
One of the key themes that run through the book is developed in the context of the chapters by De Laroisiere and Padoa-Schioppa. De Laroisier's chapter makes the point that ECA countries can no longer be considered as a homogenous group. A two-speed ECA clearly has emerged. The faster reformers - mainly the countries of Central Europe and the Baltics - are those countries that aspire to asced to the European Union (EU), an aspiration that is providing a major impetus to the reform effort. The other group - predominantly the countries of Eastern Europe and Central Asia - are those countries that still have, even 10 years into the transition, fundamental reforms to undertake in the financial sector. Padoa-Schioppa develops this teme further, stressing that even in the case of the fast reformers the catch-up process with the EU is not a simple one.
In the first decade of financial transition, governments - supported by the international financial institutions and bilateral aid progras - put considerable effort into the establishent of capital markets, particularly the stock market compnent. Such markets were viewed as being the cornerstone of market-based financial systems. Although infrastructure for most ECA stock markets are now poised to play an important role in the next decade of transition, or whether they are more likely to go into decline or be absorbed into larger international stock exchanges.
The role of the financial sector in all countries is of paramount importance. Banks are the inter-mediation agents between savings and investment, and only solid institutions are able to attract deposits and to channel them in a professional way toward productive opportunities. Efficiency of the banking sector and financial markets is a well-recognized fator of lasting growth.
Source: Alexander Fleming, Lajos Bokros, and Cari Votava. 2001. Financial transition in Europe and Central Asia: challenges of the new decade.
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In the first decade of financial transition, governments - supported by the international financial institutions and bilateral aid progras - put considerable effort into the establishent of capital markets, particularly the stock market compnent. Such markets were viewed as being the cornerstone of market-based financial systems. Although infrastructure for most ECA stock markets are now poised to play an important role in the next decade of transition, or whether they are more likely to go into decline or be absorbed into larger international stock exchanges.
The role of the financial sector in all countries is of paramount importance. Banks are the inter-mediation agents between savings and investment, and only solid institutions are able to attract deposits and to channel them in a professional way toward productive opportunities. Efficiency of the banking sector and financial markets is a well-recognized fator of lasting growth.
Source: Alexander Fleming, Lajos Bokros, and Cari Votava. 2001. Financial transition in Europe and Central Asia: challenges of the new decade.
