This book studies the recent history of financial sector development and reforms in the LAC region and compares it to other developing and developed countries to shed light on the key obstacles to financial develop-ment, both past and future. This study is particularly timely in the wake of the global financial crisis that began in 2008, as our assumptions about the underpinnings of efficient and well-functioning markets undergo close scrutiny. This book selects the best background papers and reflects the views of their authors, who stand as experts in their individual fields, thus pro-viding the reader with a set of valuable differing perspectives. The book also covers material not contained in the Flagship Report or anywhere else in the literature.