Economic crisis, global financial cycles and state control of finance: public development banking in Brazil and South Africa

In the aftermath of recent crisis, national governments across global south increasingly see state ownership and control finance as a vital public policy tool. What explains variation in wake crisis? Interventionist policies can elicit disinvestment or exit threats from private financial actors if they limit profitability. When are credible, policymakers may rule out reform for fear devastating economic consequences. I argue that credibility is conditioned by two key variables, resilience economy to capital flight, which affects level damage flight will inflict, liquidity, be used undercut domestic threats. These arguments developed through comparative case studies cross-national over-time scale scope development banking Brazil South Africa 2008 crisis.