Democratization and the Institutional Investor
- 11 Downloads
As previous parts of this book suggest, institutional investors demand guarantees from sovereign governments. Institutional investors are not looking for a variety of economic or political choice, but rather the speed at which formulaic reforms take place without causing risk to future returns. If a country is committed to maintaining or attracting investments as a national priority, as the primary emerging market countries have been, then speed of reform and the maintenance of stability are crucial. Given the austerity of most reforms and their propensity to cause discontent among the population, are not these two goals at odds with each other? Does then political repression become a necessary means to serve both goals of economic reform and stability? In particular, does the speed and austerity demanded by large investors of the reform process encourage political repression and authoritarianism?
KeywordsStock Market Institutional Investor Economic Reform Civil Liberty Capital Flow
Unable to display preview. Download preview PDF.