Financial reform should attach importance to the process

Sandra Zhanbo Shi has written an important article. He made based on the theory of financial deepening, financial sector development and reform of the order is very important. First to focus on development of the financial industry's most important and basic in some areas, including money market and interbank market, then is the government bond market. In the government bond market-related hardware and software infrastructure is established, can proceed with the development of corporate bond [126.82 -0.05%] securities market. Since then, the development of stock and derivatives markets.
The technology of this ideal model is not wrong, but the problem is, reality and theory are often very different. I understand that the financial crisis: only by knowing the real economy, the financial sector institutional structure and incentives related to political economy, it may be to understand the real financial reform.
Over the years, IMF and World Bank have been trying to implement in emerging market economies to free market, democratic system as the core of the Washington Consensus, some successful, some failed. The reason why many aid projects fail, and some reforms wander why not before, it is because, due to the ideal model of perfect market assumptions do not apply in those countries.
Even during the financial crisis, politicians have a strong enough will, reformers are worthy of this task is difficult to find high-quality team to promote the difficult reforms. In many emerging market economies, driven by complex and driven by political corruption, a bloated and inefficient bureaucracy are the first to be responsible for the crisis.