1. General introduction -- 2. A critical review of the literature on credit rationing -- 3. The theory of credit rationing revisited -- 4. Financial liberalization -- 5. Intervention I : the South Korean experience -- 6. Intervention II : the Indian experience -- 7. Concluding remarks.

In recent years free movement of financial capital following financial liberalization has given the impression that financial markets are truly globalized. In this paper we argue that free movement of financial capital alone does not constitute financial globalization. To achieve true financial...