Islamic finance is growing at an astonishing rate and is now a $1200 billion industry, with operations in over 100 countries. This book explains the paradox of a system rooted in the medieval era thriving in the global economy.
The first part of the book provides background information on Islam and Finance (Chapters 1 to 3). It debunks common myths about Islam and Islamic finance, traces the historical evolution of Islamic economics and finance, as well as the mechanisms by which Homo Islamicus and Homo Economicus were reconciled, and considers religious injunctions as they pertain to finance. One of the underlying themes is the contrast between traditional interpretations with their emphasis on literalism and legalism, and modern ones, which are more adaptive and more likely to focus on the spirit, or the ‘moral economy’, of Islam.
The second part of the book introduces and describes the world of Islamic finance (Chapters 4 to 7). It traces the birth and evolution of modern Islamic finance and places it in its proper political and economic context. It accounts for the diversity of the industry by analyzing the ways different countries have introduced and dealt with Islamic finance, and by providing a typology of Islamic financial products.
The third part (Chapters 8 to 12) deals with the issues and challenges facing Islam from five vantage points: management, strategy and culture (how the practices of Islamic financial institutions differ from those of conventional ones; the strategies developed by Islamic financial institutions to expand their markets; the managerial problems encountered by Islamic financial institutions; the problem of the ‘Islamic moral hazard’; the cultural barriers to the implementation of true Islamic financial systems); economics (the role of Islamic finance in mobilizing savings, allocating funds, and promoting development; Islamic capital markets; the macro-economic implications of Islamic finance); regulation (the regulatory issues raised, domestically and internationally, by Islamic finance; the impact of the regulatory norms of the global economy on Islamic institutions); politics (the connection between Islamic finance and domestic politics; Islam in the New World Order; the alleged ties of financial institutions to Islamic terrorism); and religion (the battles over religious interpretation in historical and comparative perspective).
Table of Contents
- Islamic Finance in Theory and Practice
- Islam, Economics and Finance
- Riba, Gharar, and the Moral Economy of Islam in Historical and ComparativePerspective
- The Evolution of Modern Islamic Finance
- Islamic Finance and the GlobalPolitical Economy
- Country Differences
- Financial Products and Instruments
- Strategic, Managerial, and Cultural Issues
- Economic Issues:Islamic Finance and Development
- Regulatory Issues and Challenges:Global Norms and Religious Constraints
- Islamic Finance and Politics:Guilt By Association
- Religious Issues and Challenges: DefiningIslam and Interpreting the Shariah
- Conclusion: Islamic Finance and the Global Financial Meltdown
Title: Islamic Finance in the Global Economy
Author: Ibrahim Warde
Publisher: Edinburgh University Press; 2nd edition (May 15, 2010)
Length: 288 pages
Pub. Date: May 15, 2010