Table of Contents

Note from the Editors

Contributors

Acknowledgments

A Financial Architecture for Middle-Class-Oriented Development (Mead and Schwenninger)

Executive Summary

The Case for Middle-Class-Oriented Development

Obstacles to Middle-Class-Oriented Development

Toward a New International Financial Architecture

Conclusion: The Politics of International Financial Architecture

Appendix: Making Dollarization Work

Private Capital Flows, Emerging Economies, and International Financial Architecture (Yago)

Introduction

Contagion as Metaphor

The Integration of Global Capital Markets

Deconstructing Global Financial Architecture Proposals

Building the Financial Infrastructure for Middle Class Emerging Economies (D'Arista)

Introduction

Building on Past Structures and Programs

Building on Existing Structures and Trends

Structuring Pension Funds in Emerging Economies for Growth and Development

Reforming the International Monetary and Financial Architecture to Promote Domestic Demand-Driven Growth in Emerging Economies

Conclusion

Capital Flows and the International Financial Architecture (Eatwell and Taylor)

Capital Flows and the International Financial Architecture

Liberal Capital Markets in History

The Breakdown of Financial Regulation

Actual and Potential Problems in Industrialized Economies

The Performance of the Private Sector

The Performance of the Public Sector

Governments in Search of Credibility

The Position of the United States

The American Predicament

External Dangers?

Developing and Transition Economies

Exchange Rates

Dealing with the Problems At Hand

Bands

Capital Controls

Managing Global Financial Risk

A World Financial Authority

Macroeconomic Regulation and Risk Management

Microeconomic Regulation and Risk Management

The Way Forward

Bibliography

Solving the Currency Conundrum (Eichengreen)

Introduction

Going to Extremes

The Backlash

Which Alternative?

Monetary Union

Achieving Greater Flexibility in Emerging Markets

G--3 Target Zones

How the International Monetary System Will Look in Twenty Years

The Diminishing Returns to Export-Led Growth (Blecker)

Prologue: The Sudden Collapse of the Export-Led Economies

The Hypothesis: Statement and Qualifications

Literature Survey: Studies of Exports, Growth, and the Fallacy of Composition

Empirical Plausibility: A Preliminary Look at Export Growth Trends

Policy Implications: Which Way Out of the Dilemma?

The American Stock Market as a Financial Risk: A Discussion of Historic and Demographic Risks (Dugger, McNally and Medley)

Introduction

Trade, Development, and the Post-Cold War Transition

Household Balance Sheets and Generational Deleveraging

Macroeconomic Forecasts Including a Major Market Decline

Concluding Comments

Bibliography

Appendix

Reforming and Deepening Mexico's Financial Markets (Lopez-de-Silanes)

Introduction

Legal Protection for Investors

Enforcement of Laws

Consequences of Investor Protection

Reforms for Deepening Mexico's Financial Markets

Conclusion and Policy Implications

Tables

Bibliography

Economic Crisis and Corporate Reform in East Asia (Woo-Cumings)

Economic Crisis and Corporate Reform in East Asia

Northeast and Southeast Asia between the State and the ``Sib-Fetters'' of the Economy

Corporate Governance in Korea

Concentration and Diversification in the Korean Chaebol

Family Governance, Trust and Rule by Regulation

Family Governance: Part of the Problem or Part of the Solution?

Efforts at Corporate Reform in Korea

The Politics of Ethnicity and Corporate Governance in Southeast Asia

Conclusion

Bibliography

Cultural Contradictions of Post-Communism: Why Liberal Reforms Did Not Succeed in Russia (Khrushcheva)

Introduction

Russia's Bottom: The Culture of Envy

Russia's Top: Privatization Russian Style

Russia's Middle: Voices of Reason

Conclusion

Bibliography

Korea's Comeback: The Government's Predicament (Root)

Introduction

Financial System Reform

Business Reform

Labor Reform

Bibliography

Sustainable Development and the Open-door Policy in China (Galbraith and Lu)

Introduction

Budget Deficits and Cultural Revolution

Bottlenecks and Heavy Industry

The Agricultural Reform

Auxiliary Reforms in Light Industry and Commerce

The Second Phase: Urban Economic Reform 1984--88

The Transitory Period (1988--91): Adjustment and Crisis

The Third Round of Reforms: 1992--97

The Open Door Policy -- What Was It?

The Role of the Open Door Policy

The Crisis of the 1990s

The Outlook and What is Required?

Bibliography

The Paradox of Free Market Democracy: Indonesia and the Problems Facing Neoliberal Reform (Chua)

Introduction

Background

Indonesia

Policy Implications