Promoting Global Financial Development : Vive La Difference!

This paper is based on the author's comments before the Group of 15 (G15) Conference "Cooperation among G15 Stock Market Exchanges - G15 Capital Markets: Challenges & Opportunities in the New World". The conference was hosted by the Ministry of Foreign Affairs in Egypt, and sponsored and organized by the Cairo & Alexandria Stock Exchanges. Dr. Trimbath addressed the topic of "Financial Crisis Management and Prevention Mechanisms" for banks and stock exchanges. The conference took place March 25 - 26, 2001 at the Semiramis Intercontinental Hotel, Cairo, Egypt. Regulators and policy makers are coming to realize what capital market participants have known for a long time: When it comes to developing the financial institutions that provide the infrastructure for robust capital markets, there is no "one size fits all". This article provides a review of recent developments in economic and finance studies on the link between financial markets and economic growth. Significant advances in the development of stock exchange safety and infrastructure in G15 countries are included throughout the discussion by way of example. The focus on stock exchange development is highlighted by a discussion of new research on capital market integration