In light of the recent financial crises in the emerging markets, the coming-into-force of the financial services agreement under the GATS has been considered a success. While the agreement provides for little new liberalization but rather formalizes the status quo, it was feared that governments...

Countries need suitable mechanisms for balancing the risks and benefits of financial openness, including mechanisms through which to provide insurance to citizens, through the marketplace or through redistributive policy, and thus to avert political pressure for capital controls. Capital...