Within a decade, private capital surpassed aid as the primary capital source for developing countries. This book explores how the increase of private funds, in particular portfolio capital, effects democratization in developing countries. A probe into institutional investors' co-ordination, asset concentration, political preferences, and activism, provides a framework for understanding the politics of international financial constraints. Highlighting the dilemma presented by international finance's simultaneous emphasis on austerity and stability, the question of whether this public to private shift might facilitate an anti-democratic strain is examined.
MARY ANN HALEY is a Lecturer at Fairfield University in Connecticut. Her previous publications include Emerging Market Makers: The Power of Institutional Investors. She has served as vice president of Intercontinental Publications; a company dedicated to technology transfer to developing countries.