Stresses theneed for project appraisal of awqaƒ funds.Surveys some basic types of Islamic financing and investment with emphasis on those appropriate for awqaƒ projects: long-term lease (hikr), dual lease rights, purchase of a building on awqãf land on deferred payment-basis, partner-ship with other investors for Construction of building on awqâf land and rent sharing of a building constructed by an investor on awqãƒ land. Then discusses three methods of project management: direct management, management by an agent on payment, granting a right of management to an investor against a ﬁxed return. A scholarly paper with a number of original ideas. For Muslim economists- Based on primary sources. Undocumented.
Public Finance and Institutions
Islamic Shari‘a has given a number of measures to distribute natural wealth such as collective ownership of public property, ihya al—mawat, ownership of mineral wealth, and free access to surplus water. There are also rules for distribution of income and wealth such as ma'un,lending of animals, irtifaq, inheritance, zakah, zakah al-ﬁtr, awqaf, al-maniha , fai’, ghanima, rikaz, aqila, nafaqat al-wajiba, bait al-mal and the right to acquire the necessities of life in a real emergency. There are indirect measures also voluntary infaq, gifts, hospitality, prohibition of riba prohibition of monopoly, restricting rent of land, ensuring a free market, prohibition of renting of houses at Makka and Mina, free services of education and defence. The Islamic strategy is to combat poverty and to reduce disparities in income distribution. Analytical. For Muslim economists. Based on primary sources. Documented.
Examination of S.N.H. Naqvi’s (Ethics and Economics 1981) thesis that an equity—based-Islamic economy would be highly. unstable. Argues that an Islamic economy would be more stable for four reasons; (i) investmenfleads to greater stability than loan-finance; (ii) speculation in an Islamic economy would be considerably reduced; (iii) .in corporate finance, equity-financed corporations are more stable as they do not have to pay fixed interest payments; (iv) that ‘hot’ money movements would not take place in international ﬁnance due to small differentials in profits. Points out that Naqvi’s argument proves just the reverse. Holds that a limited liability concept is applicable in case of equity-based finance as well. Analytical. For economists. Based on primary sources. Documented.
Monetary and Financial Theory and Institutions
A zero rate of interest can be achieved by moral persuasion or administrative fiat (though not by market equilibrium). It is feasible to allocate both real and financial capital by an Islamic interest-free market process. Such interest-free allocation maintains the economic criteria of efficiency. The positive attitude of Islam towards economic activity and its various institutional features would increase the supply of venture capital andencourage growth. Analytical. For Muslim economists. Based on primary sources. Documented.