The course explores the structures and social functions of financial institutions and markets in both developing and developed countries. The focus of the course is on the role that the financial sector can play to facilitate economic development and the extent and nature of state intervention that is required in this context. The course surveys contrasting theoretical frameworks and their policy implications together with institutional and historical developments.

One 2-hour lecture each week x 10 weeks.

None.

1. Briefing note; Individual; 1750 words; 50%; ILOs 1, 4.
2. Degree exam: in-person; Individual; 90 minutes; 50%; ILOs 1, 3, 5, 6.

The course analyses financial institutions and markets in developing and emerging market economies. It analyses a number of different issues arising from the process of liberalisation of financial systems and capital movements in these countries and what they can learn from the experience of developed countries. 

By the end of the course, students should be able to:

1. Evaluate theoretical perspectives on the role of banking sectors and securities markets in financing productive investment in developing countries

2. Analyse the relationship between policies towards the financial system and broader aims of economic development, structural transformation, and economic diversification

3. Evaluate theories of financial crises and their implications for financial regulation, institutional arrangements, and economic management

4. Assess the implications of the historical evolution of financial systems and the integration of developing countries into the global economy for understanding the role of the financial sector

5. Evaluate alternative approaches to financing infrastructure development in developing countries and their implications for pricing and public expenditure commitments

6. Assess the role of international and domestic development banking systems in supporting economic development