ABSTRACT
Introduction The discussion in Chapter 1 shows that capital markets can effectively be developed when appropriate legal and institutional frameworks are in existence. This begs the question: how should such legal and institutional frameworks be developed in countries or economic regions where they have never existed before or where they are not robust enough to generate capital market growth. A number of techniques have been adopted before, but history has not judged most of them favourably and as a result the search for an effective development theory appears to be well and truly still ongoing. In this chapter, we shall look at different techniques, methods and theories that scholars and practitioners have called on to aid as a tool for legal and institutional reform in developing countries. The aim is to analyse the strengths and weaknesses inherent in such theoretical underpinnings.
