ABSTRACT

The view has long prevailed among economists that, in less-developed countries, securities markets would be difficult to create, costly (in both budgetary and opportunity senses) to establish and maintain, and of little economic benefit. 1 The virtual neglect of securities markets in the literature of development economics reflects a general academic attitude that the subject is unimportant. Opinion in underdeveloped countries and international agencies has been similar to that of academics, save for the ‘institution building’ attitude sometimes found among politicians and officials.