Waiting for the Barbarians: Managing the Globalization of Banking in Developing Countries.

This paper outlines the contours of an ongoing research project on the politics of banking-sector opening in Mexico, Brazil, and Indonesia. The project tries to understand why these three countries opened their domestic banking sectors to foreign participation in the 1990s and early 2000s after decades of financial protectionism, and why their governments countries exercised different degrees of control over the opening process. I find that international pressure by itself did not generate significant opening; only when external pressure converged with banking shocks, and sometimes also with domestically-driven ideational change, did significant opening follow. I also find that although the shocks forced major de jure opening in all three countries, in practice, policymakers gradually reasserted control over the opening process and were able to harness foreign capital to advance domestic political priorities. ..PAT.-Unpublished Manuscript [ABSTRACT FROM AUTHOR]