Second Capital Market Development Program

Several sustainability lessons from CMDP II (Second Capital Market Development Program) may be relevant to future interventions. A key aspect was following an integrated approach fostered through consultations. Policy coordination under CMDP II resulted in ensuring identification of responsibility and minimal replication of effort. In addition, CMDP II correctly understood the shortcomings in the government's response to the crisis, related to poor surveillance and failure to address the underlying causes in weak governance and incompatible incentives. At the outset, CMDP II proactively proposed remedies with proven records in addressing governance issues in the exchanges, especially demutualization.