This book is the product of an attempt to look differently at the issue of poverty, along with food security and affordable housing. There is a tendency in conventional economics and finance literature to be apologetic when dealing with globally prevailing and unfair economic and financial systems. Islamic economics and finance academia is not immune from this tendency. The book aims to raise awareness about the root causes and suggests novel proposals that will lead to sustainable solutions. It is based on the understanding that if we continue doing more of the same things, we cannot expect to produce different results.
This book is also premised on the understanding that the financial sector can promote economic progress only if it channels capital to the most productive use while avoiding moral hazard and adverse selection. The issue of collateral taking promotes a situation where financial institutions prefer to lend only too big-to-fail structures for shelter and food sectors that fuel poverty and inequality. This adverse selection ultimately gives rise to food security and affordable housing issues. This indicates that financial liberalization is not the solution to dealing with poverty and inequality. Instead, strong policy initiatives and financial regulations to direct capital to provide long-term sustainability are needed.
Author(s): Ahmet Suayb Gundogdu
Series: Palgrave Studies in Islamic Banking, Finance, and Economics
Publisher: Palgrave Macmillan
Year: 2023
Language: English
Pages: 205
City: Cham
Preface
Contents
List of Figures
List of Tables
1 Affordable Housing and Poverty
The Role of Price Formation and Land Use Policy
The Role of Zakat
Zakat from Company Shareholding
The Role of Waqf
State Housing Development Projects
References
2 Islamic Mortgages and Securitization
The Issue of Resource Mobilization and Securitization
Bai Al-Inah
Bai Al-Dayn (Islamic Discounting/Factoring)
Organized Tawarruq: Commodity Murabaha
Islamic Mortgages and Lending
Murabaha as Practiced by Islamic Banks for House Financing
Ijara as Practiced by Islamic Banks House Financing
Islamic Resource Mobilization
Ethis Crowdfunding, Indonesia
Islamic Rent-Supporter Lottery System, Turkey
The Next Level Housing Program
The Role of Community Waqf in Real Estate Development
References
3 Food Security and Poverty
SDGs and Food Security
Fi’sabilillah Spending
Zakat for Poverty Alleviation and Food Security
Economic Empowerment Programs
The Issue of Agricultural Prices
Post-Harvest Losses and the Role of Warehousing
International Trade of Agricultural Commodities
References
4 Financing the Trade of Agricultural Commodities
Islamic Trade Finance Contracts and Risk for Financiers
Risk in Asset-Based Islamic Trade Finance Contracts
Risk in Asset-Backed Islamic Trade Finance Contracts
Margin Call
Murabaha Sale: Asset-Based or Asset-Backed
Commodity Price Risk Management
Security Margin Calculation and Margin Call
Islamic Future Contract and Liquidity Management
Shari’ah Non-compliant Products on the Stage
Shari’ah Compliant Alternatives from the Grassroots
References
5 Financing the Production of Agricultural Commodities
Cotton Cooperative and Financing
What is Structured Trade Finance
Financing Based on Warehouse Receipt
Financing Based on Export Receivable
Financing Facility Structure
Financier’s Security Structure
Schedule of Implementation and Security Package
Collateral Management
Assessment of the Structure
Annex-I Export Cash Flow
Annex-II Salam Price Calculation
References
6 Enabling Infrastructure
Definition and Categorization of Infrastructure
Sustainability Parameters
Business Model for Service Delivery
Contracts for Asset Development
Resource Mobilization to Scale-up
References
7 The Role of the State
Hisbah
Infrastructure: Output, Outcome, and Services
Determinants of Success
References
Index
