Although the PCPEs have begun to reform their banking sectors, serious problems remain. At the same time, long-term capital markets, including equity and bond markets, remain underdeveloped. It is useful to examine the role that capital markets, especially equity markets, can play in restructuring the enterprise sector, for example, by mobilizing and channeling long-term capital to enterprises and providing a mechanism for monitoring and evaluating their operations. While there is a consensus that capital markets are crucial in the long run, there is less agreement on the pace at which the markets can be developed and the form they should take.
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