13 December 2001

The evolving global financial system: some implications for emerging markets

The title I have chosen for my paper is rather a broad one so let me state more directly the specific themes I intend to address. They will, I hope, prove relevant to the papers and discussions that will follow over the next few days. The first theme is that of capital flows into and out of emerging market economies. What can be done so that emerging market economies get the greatest benefits of such flows at the least cost? The second theme also refers to capital, albeit with the word used in a rather different way. In particular, I would like to spend some time talking about the newly proposed Basel capital standards and their applicability to emerging market economies such as India. However, by way of introduction to this second theme, it will be necessary to raise the question of international standards and codes more generally. As I am sure you are all aware, a dauntingly large number of these codes and standards have been developed in recent years, and India has been analysing their usefulness and practicality perhaps more seriously and systematically than any other emerging market economy.

Event or Meeting:  Indira Gandhi Institute Mumbai, India Date:  13 December 2001 File:  2001 12_India_Indira Gandhi Institute_ Keynote address_13Dec2001.pdf