Adventure Capitalism Globalization and the Political Economy of Stock Markets in Africa

by Moss, Todd J.

• ISBN13: 9781403904454
• ISBN10: 1403904456
• Format: Hardcover
• Copyright: 2003-05-02
• Publisher: Palgrave Macmillan

Summary

Sub-Saharan Africa, the poorest and least integrated region of the world, now has 15 stock markets. Adventure Capitalism examines the economic and political forces behind this trend and discusses the potential consequences of financial market integration for developing countries. Using a political economy approach, it finds that financial globalization presents a formidable challenge for African policymakers, but is also an opportunity with a range of benefits.

Author Biography

Todd J. Moss is at the Development Studies Institute, London School of Economics.

Table of Contents

Preface	x
List of Tables and Figures	xi
List of Abbreviations	xii
Introduction	1	(3)
The Emergence of Africa's Stock Markets	4	(15)
Post-colonial economic policy trends	5	(4)
Africa and stock market history	9	(2)
Profile of African stock markets	11	(3)
The Ghana Stock Exchange	14	(3)
What this book is all about	17	(2)
Part I Why does Africa have Stock Markets? Determinants of the Trend	19	(50)
Economic Factors: The Technocratic Rationale for African Stock Markets	21	(19)
The ``technocratic rationale'' for stock markets	22	(2)
Are African stock exchanges used by companies to raise capital for expansion?	24	(2)
Are African stock exchanges an important destination for domestic savings?	26	(3)
Do African stock markets attract foreign capital?	29	(6)
Are African stock markets used for privatization?	35	(3)
Some conclusions: imperfect infant markets, but a start	38	(2)
Political Economy Factors: The Political Logic of Stock Markets	40	(29)
An outbreak of emerging market fever	41	(7)
A badge of inclusion	41	(4)
Geography still matters	45	(2)
Populist symbolism	47	(1)
The politics of economic reform	48	(15)
Stock markets as a low-cost financial reform	50	(2)
Ascendance of the technocrats	52	(1)
Pockets of efficiency: a technocratic parable about Mugabe and Old Mutual	53	(2)
Domestic market demands	55	(8)
Some conclusions: toward a dynamic political economy view	63	(6)
Part II What might Greater Financial Openness Imply? Consequences of Stock Markets in Africa	69	(93)
Finance and Development: Can Stock Markets Matter in Africa?	71	(32)
Financial systems and economic growth	72	(6)
Financial markets and other benefits	78	(4)
Ashanti Goldfields, shareholding and corporate governance	80	(2)
Skepticism and caution from the critics	82	(7)
Market inefficiency	83	(3)
Inappropriate speculative activity	86	(1)
Short-termism	86	(1)
Forex linkage	87	(1)
Banks are better	87	(2)
Policy imperatives	89	(11)
Regulatory oversight and monitoring roles	90	(2)
Macroeconomic stability	92	(2)
Capital account convertibility	94	(4)
Exchange rate regimes and management	98	(2)
Some conclusions: back to political economy	100	(3)
Globalization and Capital Mobility: Opportunity or Instability?	103	(28)
How globalized is Africa?	104	(5)
Global portfolio flows and economic instability	109	(9)
Equity market development and political instability	118	(13)
Undermining the existing political order	119	(4)
Exacerbating inequality	123	(3)
Inciting a political backlash	126	(5)
Global Finance and Policy Autonomy in Africa: Newly Shackled or Set Free?	131	(18)
Capital mobility as a policy influence: changing agendas	132	(5)
Exaggerated constraints: who is really in charge?	137	(4)
States and financial markets: domination or mutual hostages?	141	(4)
African `state autonomy'	145	(4)
Some Conclusions: Toward a Political Economy View of African Equity Market Development	149	(13)
Politics still matter	150	(3)
Prerequisite conditions	153	(1)
Cross-purposes and political influences on policymaking	154	(5)
Long-term influences on the African state	159	(3)
Notes	162	(14)
Bibliography	176	(22)
Index	198