Publication:
Economic Development and Islamic Finance

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dc.contributor.authorIqbal, Zamir
dc.contributor.authorMirakhor, Abbas
dc.contributor.editorIqbal, Zamir
dc.contributor.editorMirakhor, Abbas
dc.date.accessioned2013-09-19T19:29:12Z
dc.date.available2013-09-19T19:29:12Z
dc.date.issued2013
dc.description.abstractIslamic finance has been practiced in some form since the inception of Islam, its practice in modern financial markets became recognized only in the 1980s, and began to represent a meaningful share of global financial activity only around the beginning of this century. In recent years, significant interest in Islamic finance has emerged in the world's leading conventional financial centers, including London, New York, and Hong Kong, and Western investors are increasingly considering investment in Islamic financial products. The organizing principle of Islamic finance in an Islamic economy is transaction based on exchange, where real asset is exchanged for real asset. By focusing on trade and exchange in commodities and assets, Islam encourages risk sharing, which promotes social solidarity. The features of an Islamic economy will change the behavior of society. There will be greater consultation; hence there will be no impulsive-compulsive reaction in financial dealings. At the same time, the labor force in an Islamic economy will work under a rule of trust and full understanding of contracts and obligations. Workers also share in the gains achieved through the risk, based on productive efforts, which is a better incentive system than a fixed wage. Workers will be treated with respect, which reflects the importance of human dignity in Islam. This paper is organized as follows: chapter one discusses the epistemological roots of conventional and Islamic finance. Chapter two provide a perspective of conventional modern economists. Chapter three provides a brief taxonomy of the foundational Islamic market principles and evaluates them in the context of institutional and behavioral economics in the context of Knightian uncertainty. Chapter four accounts for finance and development in Islam from a historical perspective. Chapter five discusses the evolution of the concept of economic development. Chapter six provide an Islamic perspective on financial inclusion and argue that the core principles of Islam place great emphasis on social justice, inclusion, and sharing of resources between the haves and the have-nots. Chapter seven addresses financial inclusion. Chapter eight provide insight into Islam's perspective on social safety sets and social insurance. Chapter nine examines Islamic capital markets in a global context. Chapters ten examines the problems of primary and secondary aspects of the conventional stock markets and their critiques of corporate governance. Chapter eleven give a realistic view of the current state of affairs in Organization of Islamic Conference (OIC) countries. Chapter twelve addresses key economic policy challenges in the context of the Islamic economic and financial system.en
dc.identifierhttp://documents.worldbank.org/curated/en/2013/01/18146534/economic-development-islamic-finance
dc.identifier.doi10.1596/978-0-8213-9953-8
dc.identifier.isbn978-0-8213-9953-8
dc.identifier.other10.1596/978-0-8213-9953-8
dc.identifier.urihttps://hdl.handle.net/10986/15787
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesDirections in Development--Finance;
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectPAYMENT SYSTEMS
dc.subjectBANKING
dc.subjectHOUSING FINANCE
dc.subjectREAL ESTATE MARKET
dc.subjectSUB-NATIONAL GOVERNMENT ADMINISTRATION
dc.subjectPUBLIC ADMINISTRATION
dc.subjectSECURITIES CLEARANCE
dc.subjectSETTLEMENT
dc.titleEconomic Development and Islamic Financeen
dspace.entity.typePublication
okr.date.disclosure2013-08-27
okr.doctypePublications & Research::Publication
okr.doctypePublications & Research::Publication
okr.docurlhttp://documents.worldbank.org/curated/en/2013/01/18146534/economic-development-islamic-finance
okr.globalpracticeFinance and Markets
okr.guid798771468050094748
okr.identifier.doi10.1596/978-0-8213-9953-8
okr.identifier.externaldocumentum000442464_20130827112728
okr.identifier.internaldocumentum18146534
okr.identifier.report79891
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/08/27/000442464_20130827112728/Rendered/PDF/798910PUB0Econ00Box377374B00PUBLIC0.pdfen
okr.region.administrativeMiddle East and North Africa
okr.region.countryIran, Islamic Republic of
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicEconomic Theory and Research
okr.topicFinance and Financial Sector Development::Islamic Finance
okr.topicBanks and Banking Reform
okr.unitQuantitative Risk Analytics Dept (QRA)
okr.volume1 of 1
relation.isSeriesOfPublication706db16a-e556-46f0-8283-1b4a4b88645c
relation.isSeriesOfPublication.latestForDiscovery706db16a-e556-46f0-8283-1b4a4b88645c
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