Thus, the critical issue would be the professional expertise of the proposed entity in terms of assuring an acceptable riskreward equation. Second, there was a proposal in 2005 by Eswar Prasad and Raghuram Rajan of the IMF for a controlled approach to capital account liberalisation for economies experiencing large capital inflows.
The role of microfinance in developing countries is receiving much attention these days. Microfinance is a positive development; it has clearly helped substantial numbers of poor people escape poverty, and the Nobel Peace Prize awarded to Muhammad Yunus for his pioneering efforts in this area was certainly well deserved.