This course is about countries well enough developed to attract capital and have significant financial markets but not fully modernized – countries like China, India, Turkey and Brazil – but also Greece and Iceland. It explores the institutional foundations of financial markets and centers on the question: what factors make emerging financial markets (EFMs) different from developed financial markets? It begins with the question of why some countries grow and others do not. We will find an important role for institutions. We then turn to financial institutions in particular and explore the important connection between development of financial institutions and economic growth.