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Lin roundtable: The Value of Stock Markets (Economist Blog: Free Exchange)
July 13, 2009
The Economist Free Exchange blog published CGD senior fellow Todd Moss's response to a recent roundtable discussion hosted by World Bank Chief Economist Justin Lin.
From the article:
"First, Justin Lin's column presents a false choice: low-income developing countries are not faced with choosing between NYSE-style bourses or small local community banks. LIC governments that want to create an enabling environment for its own private sector should be focusing on creating an legal and financial framework to promote access to credit across the spectrum of demand. Certainly, no one ever expects stock markets to provide capital for the poor or even small companies, and of course community banks are better placed for certain kinds of finance."