Ataul Huq Pramanik

Integration of waqf-Islamic microfinance model for poverty reduction: The case of Bangladesh

Purpose - – This paper aims to develop an integrated waqf-based Islamic microfinance (IsMF) for poverty reduction in Bangladesh. Microfinance institutions (MFIs) have been constrained by the high cost of funds, high interest rate charges and poor human resource quality of the recipients. Islamic MFIs have recently evolved with the hope of overcoming these financial, ethical and human capital deficiencies faced by the conventional financial institutions. Moreover, a good number of integrated models have been proposed to enhance the role played by Islamic MFIs. Most of these models, however, lack empirical justifications. Design/methodology/approach - – The research uses survey techniques. A total of 381 respondents were included in the survey. The integrated waqf-based Islamic microfinance model (IWIMM) was earlier on developed using literature and intellectual discussions. There are six constructs presenting the IWIMM, namely, waqf resources, IsMF, takaful, project financing, human resource development and poverty alleviation. In the survey instrument, 45 items represent the six constructs, but only 26 items have been retained after factor analysis. Structural equation modelling has been adopted to examine the relationship among the constructs. Findings - – The results show that there are significant relationships between IsMF and takaful, waqf resources and human resource development, takaful and human resource development, IsMF and human resource development and, waqf resources and project financing. The results also indicate that poverty alleviation is possible through the integration of these constructs. Research limitations/implications - – Though the paper has studied conventional and Islamic MFIs in Bangladesh, one of the populated Organisation of Islamic Cooperation (OIC) member countries and also where poverty incidence is high, further studies need to be conducted in other OIC member countries to adopt the model in line with practical and regulatory environment of those countries. Similarly, the study is based on the perception of the respondents, which limits the generalization of the result. Practical implications - – The paper proposed a model that has the potential of being applied for poverty alleviation programmes in most of the OIC member states. Originality/value - – The present paper has developed an IWIMM for poverty reduction.

Economic reform as a precursor to political reform for development – does China have a model for resource-rich African Muslim countries?

Abstract Having gone through colonial exploitation for centuries, most of the colonies after independence from the West were confronted with two models. Contrary to the free market capitalist system based on power-sharing, some of the newly independent countries opted for an authoritarian model and ended up with unjust/distorted development based on exclusivist institutions. Despite having rich-resource endowments with less pressure of population, these countries essentially failed to promote inclusive economic institutions to ensure private property and an unbiased system of law which, in turn, would unleash the immense potentials based on incentives, talent and skills highly required for enhancing productivity and prosperity. The authoritarian but good governance (GG) under state-led development of East Asian miracle economies, in general, and China, in particular, pursuing the goal of economic modernisation before political reform made spectacular achievements in less than quarter of a century. But some of the resource-rich African countries, being unable to remain immune from the vested interest/political lobby groups, failed to make economic reform being promoted by agriculture-led development to facilitate political reform subsequently. Based on the main research question of this paper, it will be argued that the massive economic reform as that of China in terms of agriculture-led development can gradually set the stage for subsequent political reform. Based on the historical evidence of successful authoritarian development model, this paper argues in favour of Chinese style of gradualist development using incentives through empowering the households as well as individuals in materialising their potentials. However, only the effective inclusive institutions as experienced by way of ensuring all sorts of public and private goods can help the resource-rich African Muslim countries to pursue economic prosperity with fair distribution of economic, political and socio-cultural power resources. This, in turn, can help restore a ‘feeling of togetherness’ or what one of the greatest scholars of Islam – Ibn Khaldun – terms as ‘Asabiya’ for achieving a comprehensive, inclusive and sustainable development made possible by GG as opposed to liberal democracy.

Revisiting Islamization of Courses in Economics with Special Emphasis on the Operational Aspect

Knowledge immune from the moral and ethical principles based on a belief system as that of Islam has failed to address the hydra-leaded problems facing the world. Knowing about truth is possible not just by using acquired knowledge based on human reasoning or intellect. In other words, knowing is about ‘becoming’ or ‘being’. The state of ‘being’ requires a continuous process of searching for the truth i.e. reality. However, given the diversity in human knowledge based simply on rationality and reasoning, it is a stupendous task to integrate the acquired knowledge of a discipline like that of economics with revealed knowledge i.e. on Islamic world view (IWV). This study attempts to identify the existing courses in Economics based on so-called conventional wisdom and suggest the process of integrating the knowledge of IWV usng the sources derived from the Quran, Sunnah, Qiyas and Ijtihad. As for the operationalization, this study involves different potential stake-holders such as, institutions, teachers, students, sharia scholars, parents, and lastly the markets as components of demand and supply side.

Arab-uprising: an analysis from political economy perspective

Purpose - – This paper aims at examining the past as well as the current issues responsible for the most recent Arab-uprising. Design/methodology/approach - – The empirical evidence based on regression and correlation together with tabular presentations suggests that the issue of Arab-uprising can be examined from both theoretical and factual evidence. Both theoretical and empirical findings testify the extremely high interrelationships existing among the determinants and co-determinants of Arab-uprising. Based on the three most fundamental pre-requisites for living a life with satisfaction based on personal honour, dignity, voice, peace, justice and equality of opportunity, the economic, political and socio-cultural components are found to be neglected in the Arab World. The constraint of data limited the scope to use systematically available and reliable independent variables, in particular, warranted by any sophisticated empirical model. Findings - – The findings will have policy directions for the policy-makers/politicians to address the serious issues involving empowerments. It is argued that the Originality/value - – It is expected that the general reader can understand the issues raised in this paper, internalize the ideas and create an overall environment to redirect the policy frameworks for resolving the social problems without conflict.

Development and democratization from the perspective of Islamic world view: The role of civil society versus state in the Arab world

Purpose - The issue of democracy and development interrelationship is very complex and debatable. There does not seem to exist any automatic relationship between them and the purpose of this paper is to analyse the relationships of democracy with civil society and development based on Islamic World View. Design/methodology/approach - A theoretical approach has been developed to examine how stable democracies and sustainable human development can be attained only with a balanced combination of the involvement of state and society to ensure socially most desired goods and services based on the theory of choice. The empirical evidence is used to show how the democracy can be promoted in terms of creating proper conditions that can empower the people to form civil society to press for democratization, using self-expression values compatible to shura. Findings - The paper concludes that democracy must be homegrown and cannot be implanted by external forces by “Iraqi-style invasion”. Originality/value - An original study on the interrelationship between state and civil society in the Arab world, within the context of Islam.