Consistency And Viability Of Islamic Economic Systems And The Transition Process

Consistency and Viability of Islamic Economics Systems and the Transition Process outlines the transition problem for non-market economies and creates an analytic framework for understanding the cause and effect of these economies.

Consistency and Viability of Capitalist Economic Systems develops an original analytical framework to understand the relationship between the economic, political, and ideological structures, the external environment, and the process of reform that give rise to certain economic systems by establishing consistency.

Economic systems and the reforms processes examined in Consistency and Viability of Socialist Economics Systems are the centrally administered socialist economics system of the Soviet Union, the Liberman-Kosygin reforms, the Gorbachev reforms and market socialism of Yugoslavia.

Islamic finance has started to grow in international finance across the globe, with some concentration in few countries. Nearly 20 percent annual growth of Islamic finance in recent years seems to point to its resilience and broad appeal, partly owing to principles that govern Islamic financial activities, including equity, participation, and ownership. In theory, Islamic finance is resilient to shocks because of its emphasis on risk sharing, limits on excessive risk taking, and strong link to real activities. Empirical evidence on the stability of Islamic banks, however, is so far mixed. While these banks face similar risks as conventional banks do, they are also exposed to idiosyncratic risks, necessitating a tailoring of current risk management practices. The macroeconomic policy implications of the rapid expansion of Islamic finance are far reaching and need careful considerations.

This paper analyzes the implications of Islamic precepts on banks’ structure and activities, focusing on banking supervision issues. It points out and discusses these issues in the context of a paradigm version of Islamic banking, as well as in frameworks that fall between the paradigm version and conventional banking. The case of Islamic banks operating in a conventional system is also examined.

The third in a series on the middle East, this volume deals with the way in which Islamic economists believe that an economic system should reflect religious values, rather than a society's values being determined by the economic system.

Although Islamic finance is one of the fastest growing segments of emerging global financial markets, its concepts are not fully exploited especially in the areas of economic development, inclusion, access to finance, and public policy. This volume is to improve understanding of the perspective of Islamic finance on economic development, social and economic justice, human welfare, and economic growth.