When the U.S. government lifted sanctions in 2004 prohibiting American firms from doing business with and investing in Libya, Westernfinancialinstitutions flocked to the oil-rich nation, according to a recent investigation by the Wall Street Journal.
Whether one believes this Soviet disclaimer or not, the reality is that the Germans have become the aggressive syndicators of a Soviet debt bail-out scheme drawing on other Western governments and financialinstitutions.
As emerging economies increasingly integrate with the western world and open up their economies, these countries will need to restructure their financialinstitutions and institute regulatory norms in line with global guidelines, for instance by adopting Basel Guidelines for their banking system.