• Advanced developing countries are increasingly encouraged to remove existing
capital controls, but mixed experiences with capital account opening caution
that reform must be carefully designed to increase efficiency and growth
without compromising stability
• A gradual dismantling of capital controls is recommended, based on progress
made in tax reform, exchange rate management, enforcement of bank competition
and supervision, and solving domestic banks' bad-loan problems
Towards Capital Account Convertibility
OECD Development Centre Policy Briefs
