Social Organizations, Risk-sharing Institutions, and Economic Development

DEPOSIT AND FINANCING INSTRUMENTS THROUGH WAQF BANK FOR FOSTERING REAL ECONOMY AND SOCIAL SUSTAINABILITY

International Journal of Islamic Business Ethics ◽

10.30659/ijibe.4.2.611-626 ◽

2019 ◽

Vol 4 (2) ◽

pp. 611

Author(s):

Muhammad Ridhwan Ab. Aziz ◽

Mohd Asyraf Yusof

Keyword(s):

Economic Development ◽

Risk Sharing ◽

Global Financial Crisis ◽

Government Expenditure ◽

Social Sustainability ◽

Islamic Finance ◽

Real Economy ◽

Financial Products ◽

Muslim Countries ◽

The Impact

During the global financial crisis and its aftermath, Islamic financial institutions were less affected, protected by their fundamental operating principles of risk sharing and the avoidance of leverage and speculative financial products. This has led to a greater appreciation of the role of Islamic finance in supporting economic growth across the globe. The contribution of Islamic finance and Islamic social finance especially through waqf sector promotes real economic development and could help to foster real economy and social sustainability.� The impact and contribution of waqf for economic development in fostering real economy and social sustainability can be obverved in many areas such as enhancing economic progress, eradicating proverty, restoring distribution of income, reducing government expenditure, preventing deficit financing and stimulate growth and job creation. Therefore, a new mechanism is needed to support non-bankable and poor customers for financing facilities via Shariah compliant Islamic financial products and services.The purpose of this paper is to examine the most feasible mechanism for deposit and financing instruments based on waqf through Waqf Bank that able to foster and stimulate economic and social sustainability in the real economy sector especially for Muslim countries. The methodology of research in this study is through qualitative research based on interviews with Muslim scholars as well as Islamic banking and waqf practitioners. The finding of this study shows that there is feasible mechanism and modus operandi for the development of deposit and financing instruments in the Waqf Bank that able to be applied in many Muslim countries worldwide.

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Networks in economic development

Oxford Review of Economic Policy ◽

10.1093/oxrep/grz025 ◽

2019 ◽

Vol 35 (4) ◽

pp. 678-721 ◽

Cited By ~ 2

Author(s):

Emily Breza ◽

Arun Chandrasekhar ◽

Benjamin Golub ◽

Aneesha Parvathaneni

Keyword(s):

Economic Development ◽

Policy Analysis ◽

Information Flow ◽

Risk Sharing ◽

Information Diffusion ◽

Unintended Consequences ◽

Network Economics ◽

The Right ◽

Economics Research

Abstract This chapter surveys the implications of some studies in network economics research for economic development. We focus on information flow and risk-sharing—two topics where work in theory, empirics, and policy analysis have been especially intensive and complementary. In analysing information, we distinguish models of information diffusion and aggregation, highlight how different models imply very different guidance regarding the right way to seed information. In discussing risk-sharing, we look at the key frictions that impede efficient informal insurance, and some potential unintended consequences when policymakers intervene to help. Throughout, we stress practical insights that can be used with limited measurement of the details of networks.

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Applying Risk-Sharing Finance for Economic Development

10.1007/978-3-030-82642-0 ◽

2021 ◽

Author(s):

Putri Swastika ◽

Abbas Mirakhor

Keyword(s):

Economic Development ◽

Risk Sharing

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Enhanced Access to Finance, Social Welfare, and Economic Development under a Risk-Sharing System

Risk Sharing in Finance ◽

10.1002/9781119199328.ch9 ◽

2015 ◽

pp. 179-199

Keyword(s):

Economic Development ◽

Social Welfare ◽

Risk Sharing ◽

Access To Finance

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Local Governments’ Strategy for the Development of Social Organizations

The China Nonprofit Review ◽

10.1163/18765149-12341332 ◽

2017 ◽

Vol 9 (2) ◽

pp. 225-255

Author(s):

Kegao Yan ◽

Shunhao Lin ◽

Binbin Ren

Keyword(s):

Economic Development ◽

Development Strategy ◽

Local Governments ◽

Central Government ◽

Political Stability ◽

Social Organizations ◽

The Government ◽

New Perspective ◽

Differential Control ◽

Social Management

Abstract In recent years, the central government encourages local governments to innovate the system for social organization management propitious to the development of social organizations, but social organizations are double-edged, which can both alleviate the social management pressure of local governments and challenge their authority. Therefore, local governments have to implement the strategy of differential control for managing social organizations. The theory of differential control is an important paradigm for explaining the government-society relationship in China, as it provides a theoretical framework for understanding local governments’ behavioral logic of developing social organizations, but local governments’ specific application and change of the strategy about differential control still need to be further explored. Based on the above observation, by collecting the panel data of 312 prefecture-level cities of China in 2008-2014, we have discovered that local governments, on the whole, have adopted the development strategy of “developing quantity and restraining capability.” They give priority to developing social organizations promoting economic development and social service, but implement strict control over environmental, legal, and international foreign-related organizations affecting the realization of economic goals or political stability. With a more developed economy and better fiscal revenues, a more lenient environment is given to social organizations by local governments, and social organizations are more developed. But the control over environmental social organizations does not change with the changes of economic development or fiscal revenues. This study not only expands the theory of differential control and provides a new understanding of the relations between government and social organizations, but also reveals local governments’ behavioral logic of developing social organizations, which also provides a new perspective for understanding local governments’ behaviors in developing social organizations.

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