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Financial Reform in Central and Eastern Europe pp 179–220Cite as

Palgrave Macmillan

Financial Liberalisation, Growth and Adjustment: Some Lessons from Developing Countries

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Abstract

The experience of developing countries has shown that successful financial liberalisation is clearly not a simple matter of ‘getting the prices right’. Attempts towards financial liberalisation in several Latin American countries have provoked major banking crises and related economic recessions, requiring subsequent government interventions at considerable economic cost. In various East Asian countries financial reforms are rated to have been more successful, but the common denominator to this success appears to lie in a very gradual and cautious approach towards financial liberalisation. Importantly, in these cases good economic performance preceded the liberalisation process and heavy government controls of the financial sector played a key role in successful industrial development.

The author is grateful to Stephany Griffith-Jones, Valpy FitzGerald and participants at the ACE-EC Workshop on ‘Financial Sector Developement and Macroeconomic Policies in Transition Economies’ (Brighton, 21–22 September 1993) for helpful comments on a previous draft of this paper.

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Authors
  1. Rob Vos
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Editor information

Editors and Affiliations

  1. Institute of Development Studies, Sussex University, UK

    Stephany Griffith-Jones (Fellow) (Fellow)

  2. Czech National Bank, Prague, Czech Republic

    Zdeněk Drábek

Copyright information

© 1995 Stephany Griffith-Jones and Zdeněk Drábek

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Vos, R. (1995). Financial Liberalisation, Growth and Adjustment: Some Lessons from Developing Countries. In: Griffith-Jones, S., Drábek, Z. (eds) Financial Reform in Central and Eastern Europe. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-23800-2_8

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