Freedom and Finance: Democratization and Institutional Investors in Developing Countries

Within a decade, private capital has surpassed foreign aid as the primary capital source for developing countries. This book explores how the increase of private funds, in particular portfolio capital, affects democratization in developing countries. A probe into institutional investors' coordination, 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, and the question of whether this public-to-private shift might facilitate an anti-democratic strain is examined.