S/F/46. Explain why financial development is considered important for a developing country aiming to achieve economic growth. What do you consider to be best practice for developing countries undertaking financial liberalisation? Illustrate your answer with suitable examples.

This paper begins by assessing the link between the financial sector and economic growth. This is a theoretical link but I also refer to authors who have established some causality. The paper then goes on to look at how a developing country might, in practice, liberalise its financial system, giving examples from Thailand.