In our introductory lecture, Dr. Charles Calomiris begins our examination of the complex relationship between institutions, finance, and economic development, highlighting how political and institutional choices shape economic trajectories. We explore historical and contemporary factors, emphasizing the role of governance in financial systems. Using empirical evidence, including the 1990s emergence phenomenon, the lecture shows how economic liberalization and strong institutions drive growth, underscoring their crucial role in long-term development.

In lecture two, we study the relationship between equity market liberalization, institutional quality, and economic growth in emerging markets. Dr. Calomiris explains how reducing barriers to foreign ownership, alongside strong governance, boosts investment, productivity, and GDP growth. Using examples from the 1980s and 1990s, we analyze public and private expropriation risks that hinder foreign participation despite legal liberalization. The lecture concludes by discussing how institutional reforms, particularly in corporate governance and minority shareholder protection, can help mitigate these risks, though implementing such changes often faces political resistance from entrenched interests.

In lecture three, we explore the evolution of corporate governance reforms in emerging markets following the 1997 Asian financial crisis, examining various country cases including Korea, Indonesia, Bulgaria, Russia, and China. We analyze how different approaches to governance reform, from government-mandated changes to voluntary initiatives like Brazil's Novo Mercado, have impacted firm valuations and market performance. Finally, Dr. Calomiris introduces recent advancements in using textual analysis to assess country-specific risks and their influence on equity prices, capital flows, and exchange rates in real-time.