Documente Academic
Documente Profesional
Documente Cultură
OED
October2008
ADBsAssistanceforDomestic CapitalMarkets
Assistanceinthisareahasgenerallybeenrelevant, effective,andsustainable.Ithashelpedtoincreasethe transparencyandefficiencyoftradingandtoreduce settlementrelatedrisksandcosts. ADBsassistanceforthedevelopmentof governmentandcorporatebondmarketshasbeenona comparativelysmallerscale,giventhedevelopmentof thefinancialsystemsinmostofthestudycountries. ADBsupportforgovernmentsecuritiesmarkets focusedonaspectsofprimarymarketdevelopment. Effectivenessofassistanceinthisareahasvaried dependingonthelevelofcommitmentbydecision makerstomarketbasedprocessesandthequalityof fiscalanddebtmanagement.ADBassistancehasbeen successfulinanumberofareasthatwillbeimportant forcorporatebondmarketdevelopment,suchasthe establishmentofefficientclearingandsettlement systemsandcreditratingagencies.However,anumber ofotherpertinentissueshavenotbeensufficiently recognizedoreffectivelyaddressed,including disclosurestandardsandpractices;thefinancing patternsofAsiancorporations;anddeficienciesindebt recoveryregimes.Moreholisticandstrategic approachesthatconsiderthebondmarketwithinthe contextofoverallfinancialsystemdevelopmentand fiscal/debtmanagementframeworksarenecessary. Effortstoexpandtheinstitutionalinvestorbasehave generallybeenlesssuccessful.ADBsupported measurestodevelopmutual,insurance,andpension fundshavenotresultedinsignificantincreasesintheir participationlevelsinstockandbondmarkets.Manyof theseinvestorsarestillstateownedandlacksufficient commercialorientationandskills,whichisreflectedin theirpreferenceforinvestingingovernmentsecurities. ADBassistanceintheirrestructuringandin encouragingmoreprivateparticipationhasbeenonly partlyeffective,mainlyduetopoliticalresistance. Impact.Generally,capitalmarketsnowhavegreater depthandliquiditythanatthestartofADBsassistance, althoughinmanycasesonlymodestlyso.Thelimited impactofADBsupporthasbeenduetodeficienciesin theimplementationofagreedreformagendas,and, moreimportantly,unaddressedimpedimentsinthe overalleconomic,business,institutional,andlegal environmentgoverningcapitalmarketactivities;as wellasthelimitedpotentialforcapitalmarket developmentinverysmalleconomies. ADBPerformance.ADBsperformancehas generallybeensatisfactory,butneedstoberaised furtherinlinewithemergingsectorchallengesand
Learning Curves available @ www.adb.org/evaluation/
Strategy2020.Thiswillinturnnecessitategreater strategicfocus,internalcoordination,andchangesin staffandconsultantresourcesonpartofADBincluding theabilitytohirespecializedexpertiseintheseareas. Recommendations AttheADBcorporatelevel,developafinancialsector strategythatprovidesaconsistentanalyticaland operationalframeworkforsectorassistancewiththe aimofimprovingtheresponsivenessofADBsupport torapidlychanginganddiverseclientdemandsand needsincludingviableapproachesforsmallorlow incomeDMCs;strengtheningthecoordinationof variousADBentitiesthatworkonsectorissues;and facilitatingtheavailabilityofadequatestaffand consultantresourcestosupportsectoroperations. Atthecountrylevel,improvetheselectivityand strategicplanningofcapitalmarketassistance throughcarefulassessmentsofmarketdevelopment potential,supportforthepreparationoflongterm strategiesthataddressallbindingconstraintsto capitalmarketdevelopment,andtheinvolvementof relevantstakeholderswithinADBandGovernment inthepreparationofsectorassistancestrategiesand programs. StrengthenthedeliveryofADBsectorassistanceby usingadherencetointernationalstandardsand principlesasindicatorsindesignandmonitoring frameworkspertainingtoassistanceforsecurities market;consideringcostsandbenefitsassociated withcapitalmarketdevelopmentmeasuresby developingandpromotingcosteffectiveapproaches; andinvolvingrelevantprivateandpublicsector stakeholdersintheformulationofreformprograms andensurethatanycapitalmarketreformsare sufficientlydiscussedwithmarketparticipants. Feedback WhentheseLearningCurveswereprepared,ADB ManagementsResponseandtheChairsSummaryof theDevelopmentEffectivenessCommittee Discussionswerenotavailablefordisclosuretothe public.ThestudywascompletedinSeptember2008.
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