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

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.

scholarly journals The Impact of Tourism Development on Economic Development: The Case of Zanzibar

2021 ◽  
pp. 41-50
Author(s):  
Hafidh Ali Hafidh ◽  
Zulekha Ayoub Rashid
Keyword(s):  
Economic Development ◽  
Government Expenditure ◽  
National Income ◽  
Tourism Development ◽  
Small Island ◽  
Stable Relationship ◽  
Long Run ◽  
Study Results ◽  
The Government ◽  
The Impact

Tourism is perceived as one of the world’s fastest growing service sectors and a major source of economic development for many, if not all, developing countries. Zanzibar as a developing country and also is a small island which have small economy, its national income depend much on tourism contribution, Therefore this paper aim to examine the impact of tourisms development to the economic development of Zanzibar, using the data based on annual time series from the period 1989–2019 and also employing Vector Error Correlation Model (VECM) to arrive at conclusions from the data in the study area. The study results found a long-run stable relationship among tourism development and economic development of Zanzibar, there is a positive and significant impact that exists between GDP and international tourism arrivals, inflation and government expenditure respectively while only inflation results show positive but insignificant impact. In order to increase the economic development in Zanzibar through the tourism sector, there is a need for the government and other stakeholders of tourism to put much consideration on this sector so as to improve overall development of Zanzibar economy.

scholarly journals RELATIVE EFFECTIVENESS OF INDONESIAN POLICY CHOICES DURING FINANCIAL CRISIS

2012 ◽  
Vol 14 (2) ◽  
pp. 177-219 ◽  
Author(s):  
Tumpak Silalahi ◽  
Tevy Chawwa
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Relative Effectiveness ◽  
Government Expenditure ◽  
Jel Classification ◽  
Exit Strategy ◽  
Economic Output ◽  
The Impact

The objective of this paper is to review the impact of crisis and policy measures taken during the crisis, to evaluate the effectiveness of those measures and to analyze the exit strategy in Indonesia. The econometric model was used to evaluate the impact of monetary and fiscal policy to economic output using quarterly data from 1990 - 2010. The result shows that monetary and fiscal policies have significant impact to economic output. In the short run the changes in real GDP is significantly affected by changes in real monetary supply in the previous three quarter and real fiscal expenditures. The lesson learned from this research among other are that cooperation and coordination among the policy makers and the timely responses are very important in tackling the crisis; an effective conventional monetary policy in normal times may become less effective in a crisis thus unconventional monetary policy indeed necessary as timely policy response and the improvement for more timely disbursement of government expenditure is important to increase the effectiveness of this policy to stimulate economic output. Moreover, several Indonesian exit strategy and policies to face future challenges are very important to reach the ultimate objective of sustainable economic growth while maintaining macroeconomic stability. JEL Classification : E52, E62, E63Keywords: monetary policy, fiscal policy, financial sector policy, global financial crisis.

scholarly journals Corruption and Growth: Evidence from the Italian regions

2012 ◽  
Vol 1 (2) ◽  
pp. 126 ◽  
Author(s):  
Nadia Fiorino ◽  
Emma Galli ◽  
Ilaria Petrarca
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Positive Impact ◽  
Government Expenditure ◽  
Public Expenditures ◽  
Potential Bias ◽  
Income Differentials ◽  
Italian Regions ◽  
Dynamic Growth ◽  
The Impact

This paper investigates the impact of corruption on economic growth in the Italian Regions. We estimate a dynamic growth model for the period 1980-2004 addressing both the potential bias of the measures of corruption and the endogeneity between corruption and economic development. We find strong evidence of a negative correlation between corruption and growth. Moreover, since government intervention has been traditionally used to reduce income differentials between the Northern and the Southern regions, we also analyze the interaction between corruption and government expenditure. Our results indicate that corruption undermines the positive impact that public expenditures have on economic growth.

scholarly journals Analyzing the Role of Islamic Finance in Kuwait Regarding Sustainable Economic Development in COVID-19 Era

2022 ◽  
Vol 14 (2) ◽  
pp. 701
Author(s):  
Salah Alhammadi
Keyword(s):  
Economic Development ◽  
Best Practices ◽  
Management Strategies ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Banking And Finance ◽  
Sustainable Economic Development ◽  
Grounded Theory Method ◽  
The Impact

The aim of the present study was first to consider the impact of COVID-19 on Kuwait’s economy. Second, it attempted to examine the role of Islamic banking and finance in achieving socioeconomic justice and attaining best practices by securing social goods. Hence, the research assessed how Islamic banking and finance can help in reconstructing the economy based on Maqasid Al-Shari’ah (higher ethical objectives) to redevelop social, economic, and environmental welfare, especially in the COVID-19 era. A theoretical approach was adopted, namely, the grounded theory method (GTM), to explore COVID-19 related solutions for achieving sustainable economic development. The findings show that Islamic banking and finance can be employed to mitigate the impact of coronavirus and can be used as an alternative financial system to support both affected people and entrepreneurs. The paper expands on previous literature discussing the role of Islamic finance in management strategies through Islamic ethical objectives, with a particular focus on Kuwait’s post-COVID-19 era. This research can help policymakers to develop mechanisms and supporting approaches for Kuwait’s economy.

Social sukuk: A new mechanism to fund social services

2017 ◽  
Vol 5 (1) ◽  
pp. 69
Author(s):  
Saadiah Mohamed ◽  
Jaizah Othman ◽  
Othmar Lehner ◽  
Ruhaini Muda
Keyword(s):  
Social Services ◽  
Risk Sharing ◽  
Social Needs ◽  
Islamic Finance ◽  
Social Sector ◽  
Banking And Finance ◽  
Finance Industry ◽  
Financial Products ◽  
The Social ◽  
Asset Class

While the premise of Islamic finance embraces  the principles of maqasid al-shariah and risk sharing with  claims to social justice and welfare, the direct impact of the modern Islamic finance industry and its contribution to the social sector  has been limited. This paper examines the claim among critics that there is an inherent  weakness of the present day Islamic banking and finance in terms of its underdeveloped social sector and argues for the need for new models that will enhance a proliferation of shariah compliant financial products  for solutions in the social sector. The paper examines the emergence in Social finance of  social bonds as new financing tools targeting on  social needs and problems that otherwise would not be tackled.  This paper discusses  the benefits of  structuring such a shariah compliant product and  makes recommendations for structuring this new asset class  referred to in this paper  as social sukuk. 

Minding the Gap: Global Finance and Human Rights

2011 ◽  
Vol 25 (2) ◽  
pp. 183-210 ◽  
Author(s):  
Mary Dowell-Jones ◽  
David Kinley
Keyword(s):  
Human Rights ◽  
Global Economy ◽  
Global Financial Crisis ◽  
Real Economy ◽  
Blank Space ◽  
Global Finance ◽  
Financial Products ◽  
The Subject ◽  
Global Financial System ◽  
Rights Issues

The workings of global finance are like that part of the iceberg beneath the waterline – vast, unseen and, for many, unknown. The interaction of global finance with human rights is especially opaque. The globalization of each phenomenon has occurred very largely independently of the other. Even the recent surge in interest in the global economy and human rights has been heavily focused on the real economy and on what (non-banking) corporations do and how they behave. The particular dimension of interactions between finance and human rights has, by and large, been a blank space. In this article we seek to bridge the gap in understanding, perspective, and practice between the two fields by investigating actual and potential linkages in respect of four specific features of global finance – two financial products: bonds and derivatives; and two financial processes: risk management and procyclicality. These have been chosen as an illustrative sample of the complex and diverse ways in which the global financial system interacts with human rights. Although these products and processes played an important role in the recent global financial crisis, and although the interface between global finance and human rights is extensive, they have not so far featured on the human rights agenda or been the subject of detailed human rights critique. As such they provide an overview of the types of human rights issues in the financial sector that have so far been hidden from view. The paper therefore constructs an argument as to why the bridging of the gap is important and provides pointers as to how it can be done.

The global financial crisis and Islamic finance: a review of selected literature

2015 ◽  
Vol 6 (1) ◽  
pp. 94-106 ◽  
Author(s):  
Abdou DIAW
Keyword(s):  
Financial Crisis ◽  
Risk Sharing ◽  
Global Financial Crisis ◽  
Financial System ◽  
Lessons Learned ◽  
Islamic Finance ◽  
Regulatory Body ◽  
Content Type ◽  
The Global Financial Crisis ◽  
The Way

Purpose – This paper aims to critically analyze the opinions of Islamic economists about the global financial crisis to examine: their views on the causes of the crisis, the juristic and economic assessment they make of these causes and the lessons learned and the way forward. Design/methodology/approach – The paper critically reviews selected writings of prominent Islamic economics on the recent financial crisis. Findings – Most of the authors reviewed acknowledged the technical mistakes put forth by many conventional analysts as causes of the crisis. However, they have showed that the adoption of the principles of Islamic finance would have prevented most of those mistakes. The way forward, therefore, for both Islamic and conventional finance is, inter alia, greater reliance on risk sharing to inject more discipline in the system; the establishment of a strong and comprehensive regulatory body to safeguard the resilience of the system; and the integration of Zakat, Awqaf and other voluntary institutions into the financial system to cater for the financial needs of the poor. Practical implications – The importance of integrating the voluntary institutions into the financial system is to make it more inclusive and more equitable. Originality/value – This paper is the most comprehensive literature review on Islamic finance and the global financial crisis.

scholarly journals Human Capital Investment And Training In Islamic Banking Industry In Jordan Jordan Islamic Bank for Finance and Investment

2016 ◽  
Vol 12 (10) ◽  
pp. 90
Author(s):  
Ziad Mohammad Obeidat
Keyword(s):  
Human Capital ◽  
Financial Services ◽  
Capital Investment ◽  
Islamic Finance ◽  
Financial Industry ◽  
Muslim Countries ◽  
Strong Focus ◽  
Wide Range ◽  
Capital Development ◽  
The Impact

The purpose of this study is to measure the impact of investment in human resources activities on the effectiveness of investment in human capital and investigated the relationship between human capital Investmenttraining and its effectiveness in Islamic banks in Jordan. The fascinating development and point of discussion in recent years is the rapid growth and expansion of the Islamic financial services industry. It is no longer rhetoric as Islamic finance has been accepted as viable and competitive mode of financial intermediation that offers wide range of financial products and services to meet the highly differentiated demands of the new economy; not only in Muslim countries but also beyond the Muslim world. Against these rapid revolution of Islamic financial industry globally and in Jordan particularly, human capital has become the defining factor in sustaining the performance and competitiveness of Islamic financial industry. Thus it is crucial to place strong focus on human capital development in embarking Islamic financial services encompassing the basic foundation namely; education. A prerequisite requirement for highly talented and skilled labor force is essential to maximize the opportunities presented by the evolving economic environment in the future. The objective of this study is to determine the issues faced by practitioners that initiate the need to undertake training and development courses as well as to identify the type of training required by current practitioners that affect performance. The main findings of the study can be more comprehensive and representative if more respondents from several banks that practices Islamic finance can be involved in validating the issue that is realizable for future study.

scholarly journals [Zakat Bank "For The Sake of God" As A Concept and an Impact on Social and Economic Development] Musarrif al-zakat ‘fi sabil Allah’ tasawwuran wa athran fi al-tanmiyyah al-ijtima‘iyyah wa al-iqtisadiyyah

2018 ◽  
Vol 18 (1) ◽  
pp. 128-140
Author(s):  
Mahadi Mohammad ◽  
Daud Ismail ◽  
Wan Mohamad Khairul Firdaus Wan Khairuldin ◽  
Asyraf Abdul Rahman
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Social Transformation ◽  
Social Progress ◽  
Muslim Countries ◽  
Social Interests ◽  
Social And Economic Development ◽  
Deductive Method ◽  
The Impact ◽  
Limited Scope

Asnaf Fi Sabilillah is among the recipients of zakat. This Asnaf has an important role in social development. However, in most Islamic countries, it is realized in a narrow and limited scope only to the aspect of jihad and education, regardless of the wider social interests and welfare of the Muslim countries today. This study aims to explain concepts, distributions and the impact of Asnaf Fi Sabilillah in the process of contemporary social transformation. The study uses a content analysis approach by adapting descriptive-deductive method. The findings show that Asnaf Fi Sabilillah should be applied in the broader meaning of jihad covering all activities that contribute to the development of da'wah for the sake of Allah, if there is no specific fund from a particular party. Asnaf Fi Sabilillah which is managed more effectively is part of revitalizing the country's economy and thus improving its status for social progress. However, its implementation needs to be in line with Shariah law to avoid corrupt governance in the Muslim world.   Keywords: Zakat, Fi Sabilillah, Economic Growth, Virtue and Wellness   يعد مصرف في سبيل الله من مصارف الزكاة. ولهذا المصرف دور فعال في التنمية الاجتماعية، إلا أن ظل التطبيق في بعض الدول الإسلامية على نطاق ضيق. فيقتصر الأمر على الجهاد الميداني والثقافي فحسب دون النظر في خدمة المصالح الاجتماعية الأخرى، غير أن تلك الدول في أمسّ الحاجة إلى ذلك. فتهدف هذه الدراسة إلى بيان مصرف "في سبيل الله" مفهومه وتوزيعه وأثره في الإصلاح الاجتماعي المعاصر. فنهجت هذه الدراسة على طريقة الدراسة المضمونية معتمدة على قاعدة الاستنباط الاستدلالي. وكانت الحصيلة مشيرة إلى أن التصور العام لمصرف في سبيل الله يطلق على مدار الجهاد بمعناه الواسع. ويمكن القول بأن هذا المصرف يشمل كل عمل يسهم في الدعوة إلى الله ونشر معالم الإسلام إذا لم يوجد هناك  تمويل كافٍ من الجهة المختصة. فإن تطوير مصرف في سبيل الله بطريقة فعالة يعد وسيلة في تنشيط اقتصاد الدولة، ومن ثم رفع مستوى الرفاهية الاجتماعية. رغم ذلك فلا بد أن يكون العمل به منضبطا بضوابط شرعية منعاً من اضطراب الأمر والفتن في الأرض..   كلمات مفتاحية: الزكاة، سبيل الله، نمو الاقتصاد، الرعاية الاجتماعية، الحياة الرفاهية

scholarly journals RELATIVE EFFECTIVENESS OF INDONESIAN POLICY CHOICES DURING FINANCIAL CRISIS

2012 ◽  
Vol 14 (2) ◽  
pp. 187-228
Author(s):  
Tumpak Silalahi ◽  
Tevy Chawwa
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Relative Effectiveness ◽  
Government Expenditure ◽  
Jel Classification ◽  
Exit Strategy ◽  
Economic Output ◽  
The Impact

The objective of this paper is to review the impact of crisis and policy measures taken during the crisis, to evaluate the effectiveness of those measures and to analyze the exit strategy in Indonesia. The econometric model was used to evaluate the impact of monetary and fiscal policy to economic output using quarterly data from 1990 - 2010. The result shows that monetary and fiscal policies have significant impact to economic output. In the short run the changes in real GDP is significantly affected by changes in real monetary supply in the previous three quarter and real fiscal expenditures. The lesson learned from this research among other are that cooperation and coordination among the policy makers and the timely responses are very important in tackling the crisis; an effective conventional monetary policy in normal times may become less effective in a crisis thus unconventional monetary policy indeed necessary as timely policy response and the improvement for more timely disbursement of government expenditure is important to increase the effectiveness of this policy to stimulate economic output. Moreover, several Indonesian exit strategy and policies to face future challenges are very important to reach the ultimate objective of sustainable economic growth while maintaining macroeconomic stability. JEL Classification : E52, E62, E63Keywords: monetary policy, fiscal policy, financial sector policy, global financial crisis.

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