Thus, one of the important considerations for encouraging the presence of foreign financial enterprises is to ensure adequate and healthy competition. The compulsion to expand foreign enterprises would thus depend on quality of competition that is already existing in a country. In any case, the consensus appears to be that process of liberalization in financial sector has to be carefully calibrated and sequenced.
In this area, by far the most important component is access to education and an economic structure where positions of importance and authority are open to all comers on the basis of merit. The term “deep” is used to describe the above institutions because they are embedded in laws, constitutions and culture and are not amenable to quick change.