Asian Development Bank6 ADB Avenue, Mandaluyong City1550 Metro Manila, Philippineswww.adb.org© 2011 by Asian Development BankOctober 2011Publication Stock No. WPS114110The views expressed in this paper are those of the author/s and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for anyconsequence of their use.By making any designation of or reference to a particular territory or geographic area, or by using the term “country”in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area.Note: In this publication, “$” refers to US dollars.The ADB South Asia Working Paper Series is a forum for ongoing and recently completed research and policystudies undertaken in ADB or on its behalf. The series is a new knowledge product and replaces the South AsiaEconomic Report and South Asia Occasional Paper Series. It is meant to enhance greater understanding of currentimportant economic and development issues in South Asia, promote policy dialogue among stakeholders, andfacilitate reforms and development management.The ADB South Asia Working Paper Series is a quick-disseminating, informal publication whose titles couldsubsequently be revised for publication as articles in professional journals or chapters in books. The series ismaintained by the South Asia Department. The series will be made available on the ADB website and on hard copy.
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The authors are grateful to Mr. Bruno Carrasco, Director,Public Management, Financial Sector and Trade Division,South Asia Department, Asian Development Bank;Mr. Cheolsu Kim, Principal Financial Sector Specialist,South Asia Department, Asian Development Bank; andMr. Ashok Sharma, Senior Director, Office of RegionalEconomic Integration, Asian Development Bank for their valuable guidance, constructive advice, and very fruitfuldiscussions, and to the Asian Development Bank for financial support. The authors take full responsibility for any errors and omissions.