I thought
this may if interest to some on the list.
Abdoulie
Jallow
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Bismillah irRahman
irRaheem
In the
Name of Allaah, The Most Gracious, The Most
Kind
-----------------------------------------------------------------------------
Hijri
date: Saturday 9 Jumaada al-awal 1420 A.H.
From: [log in to unmask]
International
conference on
Islamic economics in the 21st
Century (report prepared by
IFDS Multimedia http://www.ifds.net)
An international
conference entitled "Islamic Economics in the 21st
Century" was
held last week from 9 to 12 August 1999 in Kuala
Lumpur, Malaysia. The
conference was organised by the
International
Islamic University,
Malaysia (IIUM) in collaboration with the Islamic
Research & Training
Institute of Islamic Development Bank in
Jeddah,
Saudi Arabia (IRTI).
According to IIUM's Rector, Professor Dr. M.
Kamal Hassan, it has been almost
five years since the university
organised a conference of international level
in the area of Islamic
economics.
The conference, which was held at a
prominent hotel in the city,
was
attended by over 200 delegates from more
than 15 countries
including
Algeria, Bangladesh, Palestine, Pakistan,
Iran and others.
The Malaysian Minister of Education and President of
the University,
Dato' Sri Mohd. Najib Tun Abdul Razak officially opened
the
conference. Najib stated that the Malaysian economy was
'bottoming
out' and that the economical crisis Malaysia faced was a
good
opportunity for scholars to look into the past in order to plan for
the
future so that the same mistakes would not be repeated. Najib
also
suggested several solutions to the challenges Islamic economics
is
facing today. This included looking back into Islamic
fundamentals,
getting rid of the distinction between developed and
non-developed
worlds, restructuring the OIC so that it be more economically
driven
and encouraging scholars to unite in articulating their voice
regarding
Islamic economics.
The issues raised during the conference
included the principles and
interpretation of Riba, Islamic bonds, Waqf,
Gharar, Zakah, Islamic
banking and economics in general. Speakers and
discussants included
members of universities and institutions such as IIUM,
the Islamic
University of Palestine, IRTI, the National University of
Malaysia
(UKM), the Institute of Islamic Understanding Malaysia and
many
others. Members of the corporate sector also spoke including
those
from the Al-Rajhi Banking and Investment Corporation in
Saudi
Arabia, World Assurance in Algeria, the Central Bank of Iran,
and
Bank Islam in Malaysia.
For more details on the conference, click
on any one of the following:
Day One
Day Two
Day Three
Day Four
Day One
The first paper presented after the opening was
"The Principles of an
Integrated Concept of Riba: Towards an Islamic
Theory of Value" by
Elmi M. Nur of the International Institute of
Islamic Economics,
International Islamic University in Pakistan. In his
paper, Nur
concentrated on the meaning and interpretation of riba while
analysing
the conceptual difficulties with each of its interpretations. He
also
defined its meaning and classified its problems.
This was
followed by paper on a subject considered controversial
amongst many Islamic
scholars, "Bay' al-Dayn and Islamic Bond Issues
in Malaysia" by
both Saiful Rosly and Sano Koutob Moustapha of the
Economics department in
IIUM. Here, the two speakers laid out the
different types of Islamic bonds
found in Malaysia as well as the steps
involved in issuing Islamic bonds in
Malaysia. In their papers, several
justifications were given to support the
legitimacy of Bay' al-dayn by
clarifying its relationship with Bay' Ma'ajjuz
at-Taslim (sale of
undeliverable item), Bay' Ma la Tamlik (sale of
unpossessed item) and
Riba.
The role of Waqf in the 21st Century was
then presented by
Mohammed Boudjellai of World Assurance in Algeria.
Boudjellai
began his paper by emphasising the historical role of the Waqf in
the
life of Muslims. In his paper, he proposed that a "new
institutional
framework capable of enhancing waqf activities in Modern
Muslim
society" to ensure a better and durable management of the
continuous
flow of waqf donations be established.
In the afternoon,
the subject of Gharar was discussed by Sami
Al-Suwailem in his paper entitled
"Towards an Objective Measure of
Gharar in Exchange. The objective of
his paper was develop an
objective criterion to identify and measure gharar
in exchange by
formulating it according to basic axioms of expected theory
and game
theory, and in consistence with Shari'ah rules and maxims. He was
of
the view that this measure would help economist view gharar as
an
integrated theory of risk, which could then be easily communicated
with
non-Muslim economists while providing a quantitative measure
of
gharar that can potentially be applied to innovative risky transactions.
The subject on Waqf was again discussed in Abul Hassan M
Sadeq's
paper entitled "Socio-economic Development Role of Waqf in the
21st
Century and Restructuring of its Administration with Special
Reference
to Bangladesh". Sadeq began his paper in similar tones with
Boudjellai
by explaining the role of Waqf historically. He then went on to
explain
the socio-economic developmental role the institution of waqf
could
and should play in the context of a resource scarce in
developing
countries. Sadeq was of the view that an organised institutional
system
of waqf was possible in order to provide facilities badly needed
in
developing countries such as educational, medical and
infrastructure
facilities. In suggesting this, he gave examples of how such a
system is
workable and needed in Bangladesh.
This was followed by a
paper entitled "The Performance of the
Institution of Zakah in Theory
and Practice" by Monzer Kahf of IRTI.
In his paper, Kahf looked at the
performance of the Zakah institution in
contemporary Muslim societies while
comparing it to Zakah at the time
of the Prophet Muhammad.
The final
session of the day was a discussion on the "Islamisation of
Economics:
Agenda for the 21st Century" by two panelists, namely,
Jomo K.S. from
the University of Malaya and Muhammad Ahmad
Sakar from the Islamic University
in Palestine.
Day Two
The second day of the conference proceeded
as scheduled with the
first presenter, Professor Dr. M. Sultan Abou-Ali,
delivering the first
keynote address of the conference entitled
"Economic Cooperation
among Muslim Countries in the 21st Century."
The chairperson for this
session was Professor Dr. Kamal Hasan, Rector of the
International
Islamic University Malaysia (IIUM).
Prof. Abou, the
first speaker for the day, is currently a professor of
Economics at the
Faculty of Commerce in Zagazig University in Egypt.
Prof. Abou, who is an
eminent scholar in the field of economics, has
vast advisory experiences. He
had served as an advisor to the Council
of Arab Economic Unity (Cairo), the
Deputy Prime Minister for
Services and the Governor of Central Bank of Egypt,
the World Bank,
African Development Bank and Kuwait Fund for Development. He
has
also contributed enormously to publications, authoring various
books,
articles and reports. Some of his notable books include
Economic
Planning and Its Techniques (Arabic), 1972 and Lectures on
Money,
Banking and Financial Institutions (Arabic), 1994.
The theme
of Prof. Abou's paper is the importance of economic
cooperation among the
Muslim countries as ordained by God
Almighty. He said, quoting a number of
Quranic verses that God has
created and made us into nations and tribes in
order that we
understand each other. However, the best among us are the
righteous
ones. (Ref: Surah Al-Hujurat, Verse 13). Focussing on this verse,
he
said it was important for the Muslims to respect all people and
strive
hard to achieve "power". Power, as he puts it, includes a
combination
of military, economic and political strengths, which he says
cannot be
acquired unless the society possesses a lead in science and
technology.
"Although mankind seeks cooperation, the world is
generally
characterized by confrontation among nations, civilizations,
cultures etc.
This confrontation is not always harmful. It could be one of
the main
driving forces for progress, inventions and new discoveries,"
he said,
quoting a Quranic verse that refers to this point.
"Had
it not been for cooperation among people endowed to them by
the power of
Allah, the world would have been destroyed." (Surah
Al-Baqarah, Verse
251)
The speaker thus urges the Muslims to strive to become strong
nations.
As at present, economic power is the most important element
of
strength, he calls on all Muslim countries to strive to achieve
this
power. According to him, being stable economically would not
only
make us stronger nations but also contribute towards the protection
of
our religion. Economic power, he says, should be aimed at
achieving
three ultimate goals, which are:
to preserve the Islamic Ummah;
to give a good and strong example which is
the foundation for
the perfection of Islam as
way of life, and
for the benefit of the whole
human society, since Islam is the
model which
realizes the balance between material needs
and
spiritual satisfaction.
In his
speech, he also discussed the reasons why previous attempts for
cooperation
among the developing countries, Muslim countries in
particular, have not been
successful. He also gave an extensive
explanation on the trends that were
expected to prevail in the 21st
century, concentrating specifically on the
trends that have direct
relevance to the topic of economic cooperation.
Prof. Abou concluded his speech by proposing a number
of
recommendations to heighten economic cooperation amongst the
Muslim
countries. Since the trends anticipated in the 21st century call
for closer
economic cooperation in all fields, which include trade, aid,
technology and
production, he urged the Muslim countries to look into
alternatives and
strive to achieve the goal soon. He referred to the
European Union as an
example, saying that it was not an overnight
effort to consolidate and work
as a united power. "It takes years for
these countries to come to terms
and work as an alliance. I recommend
the Muslim countries to start now, as
otherwise our vision of achieving
this goal would just be buried off,"
he said, adding that however small
our efforts maybe now, will finally see
the fruit of our efforts in times to
come.
Among the recommendations
proposed in his paper to further enhance
economic cooperation among Muslim
countries are as stated below:
Stronger
political commitment on behalf of the Muslim
countries
needs to be established.
The existing cooperative institutions in the
Muslim countries
should be provided with
necessary authority and responsibilities,
instead of creating unnecessary new regional institutions.
Serious steps should be taken toward
establishing Muslim
Multinational Companies
(MNCs) in specific sectors and
production of
goods and services should be encouraged.
Plan
or layout agreements and treaties such as customs
union
(10 years), free trade area (5 years)
and single market (10
years) to realize
gradual economic integration.
With the spread
of privatization and the mounting role of the
private sector, give businessmen in the Muslim countries
greater
roles to play.
The concept of regionalism should be
established. As Muslim
countries are spread
over three continents, regional
sub-groupings,
according to Prof. Abou, is a necessity.
Closer
relationships and ties should be
encouraged between the
sub-groupings to
facilitate and strengthen economic cooperation
within the Islamic World.
"The world is changing very fast.
Distances and time have greatly
diminished. Muslim countries should match
this change. Great causes
push nations to heights that would not otherwise be
achieved. Closer
economic cooperation and integration among Muslim countries
is such
a cause, shall we strive to fulfill it," he said, ending his
well-documented
speech.
The second presenter for the day was Mr. M.
Iqbal Anjum, a lecturer
and research officer at the International Institute
of Islamic Economy,
International Islamic University, Pakistan. The
chairperson for this
session was Dr. Abdul Rashid Moten, the Deputy Dean of
the
Department of Political Science at the International Islamic
University,
Malaysia.
Mr. Anjum presented a paper entitled
"Sub-regional Economic
Integration for Convergence and Development in
the Islamic World."
He should certainly be given credit for his efforts
in producing this
paper. It was greatly appreciated by the participants,
discussants,
chairperson and other speakers. It was clear from Mr.
Anjum's
presentation that he had undertaken great pains to come up with
such
informative piece of work. The information provided in the paper
was
complete with statistical data and graphs.
Mr. Anjum's paper
comprises five major topics that are divided further
into sub-topics. He
began the presentation of his paper by describing
what the "received
doctrine" means. According to him, the "received
doctrine" is
the doctrine of free trade that has been received and
advocated by
economists, who view free trade as an engine of growth
and development, as an
ideal trade policy. He said the movement in the
direction of free trade has
culminated into a world-level movement
called globalization, which means
liberalization of international trade in
goods and services as well as the
application of the World Trade
Organization (WTO) rules and the Basle
regulatory standards in the
whole world.
Globalization, he says, is
now a fashionable economic issue in the entire
world. "Now the whole
world, especially the western world, seem to
herald the movement of
globalization, which considers the whole world
a global village, and aims at
economic integration through the fast
growth of multilateral trade of all the
countries for ensuring economic
convergence and development," he said.
According to him, multilateralism–based globalization is a
golden
opportunity for improving the welfare of the developing countries
as
well as the developed countries in the long run. In contrast to the
global
optimism associated with the practice of this doctrine, he says it is
an
empirical fact that free international trade and related process
of
integration affect countries unevenly and enhances
international
disparities. Moreover, he says, numerous actions of the
capitalist
proponents of globalization have clearly negated their
announced
agenda of globalization and implied that they are more interested
in
regionalism than in globalization. Offering valid evidence for
this
conclusion, he continued by saying that the world is now
simultaneously
experiencing trends of globalization and regionalism. He is
also of the
view that the "capitalist champions of globalization are
camouflaging
their regionalist designs under their propaganda of
globalization."
Continuing his discussion, Mr. Anjum moved on to
various other
topics, which he discussed at great length. Among the topics
he
touched on besides the free trade doctrine are as stated below:
Multilateralism Vs Regionalism: Conflict
or Complimentary
Convergence among OIC
Countries and Its Role In Their
Economic
Integration
Mechanisms and Strategies For The
OIC Countries' Integration
A Comparative
Study of ECO, GCC and D-8
In concluding his speech, Mr. Anjum offered a
number of constructive
policy recommendations for the Muslims to follow in
their efforts to
accomplish greater economic cooperation, especially in the
framework
of regional and sub-regional economic integration. One of his
most
significant suggestions was to urge the Muslim countries to come
up
with an Islamic monetary union that administers a common
central
Islamic bank currency. "It is important to note that
sub-regional
economic integration of the Islamic countries is merely a
short-term
objective. After the accomplishment of this short-term objective,
the
efforts should be directed towards the achievement of the long
term
Islamic objective of ultimately establishing a universal Islamic
Common
Market in view of realizing the Islamic ideals of universal
human
development," he said as his closing remark. The discussant for
Mr.
Anjum's paper was Dr. Syed Nawab Haider Naqwi, Rector and
Professor at
the Kausar University of Sciences in Pakistan. Dr. Naqwi,
who assessed Mr.
Anjum's paper, made some useful remarks about his
work, suggesting there were
both weaknesses as well as strengths in
his paper. The bottom line was that
both of them agreed that realization
of economic cooperation and integration
is not an easy task and
requires a lot of effort. However, "overcoming
these challenges with a
positive attitude and creative mind would certainly
contribute to the
realization of this goal", they acknowledged.
The third speaker for the morning session was Dr. Farda M.
Assadov,
Head of Arabian Countries History and Economics Department at
the
Azerbaijan Institute of Oriental Studies in Azerbaijan. His
paper
entitled "Caspian Oil Region: Economic and Political Determinants
of
the Development in the 21st Century," looked mainly at the
challenges
of oil industry development in post-communist Muslim states.
Offering
in depth explanation on this topic, Dr. Assadov discussed
various
issues and problems facing these countries and their struggle
in
overcoming them. The discussant for this paper was Dr.Amer
Roubai,
Professor at the International Institute of Islamic Thought &
Civilization,
Malaysia.
The last speaker for the morning session was
Mohammed Solaiman,
Professor of Marketing at the University of Chittagong,
Bangladesh.
He presented a paper called "Services Marketing: Ethical
Issues and
Challenges (Case Study of Islamic Banking Services in
Bangladesh)."
In his paper, Dr. Solaiman, discussed the status of
Islamic banks in
Bangladesh and how they are faring in terms of activities
directed at
generating, disseminating and responding to market intelligence.
In
concluding his paper, he gave a number of suggestions to encourage
and
accelerate the process of ethical Islamic marketing system in both
Bangladesh
and other Muslim countries. The discussant for this paper
was Dr. Syed Abdul
Hamid al-Junid, Deputy President and Professor
at the Tun Abdul Razak
University, Malaysia.
The afternoon session proceeded with Dr. M.A.
Hamid, a Professor at
the Rajshahi University, Bangladesh, presenting a paper
entitled
"Islamic Banking in Bangladesh: Expectations and
Realities." Dr.
Hamid's paper, complete with statistical facts and
graphs, provides
insight into what has been happening in the Islamic banking
scenario in
Bangladesh with special reference to Islamic Bank Bangladesh
Ltd.
(IBBL). The discussant for this paper was Dr. AbulHassan M.Sadeq,
a
Professor at the Department of Economics, International Islamic
University
Malaysia.
The sixth speaker for the day was Sayed Ali Asghar Hedayati,
a
faculty member at the Iran Banking Institute, Central Bank of
Islamic
Republic of Iran. His paper, entitled "Islamic Banking: As
Experienced
in the Islamic Republic of Iran", looks at the steps and
efforts being
undertaken for the Islamization of the banking system in Iran
following
the Islamic Revolution in 1979. The paper discussed in great
details the
methods of Islamic banking, the monetary policy in Iran, impact
of
Islamic banking system on International banking system, basic
problems
and suggestions, and analysis of interest free banking system
in Iran after
15 years of operation. The discussant for this paper was
Dr. Kazem Sader from
the Department of Economics, Shahid Behesti
University, Iran.
The
conference took a short break before moving on to the final
discussion or
panel discussion called "Islamic Economic Cooperation:
Agenda for the
21st Century." Dr. Syed Nawab Haider Naqvi and Dr.
Mohammed Ariff,
Executive Director at the Malaysian Institute of
Economic Research, Malaysia
headed the discussion.
This session was the most controversial as Dr.
Ariff's thoughts and
suggestions were greeted with contention from the
participants and
academics. The speech however was admirable as it carried
substantial
facts and reflected the actual economic conditions of the
Muslims
today. His suggestions too seemed practical and realistic. What
he
actually said was that Muslims were unrealistic in their aims and
goals
to achieve better economic conditions. "After years of meetings
and
establishment of regional groupings, nothing has transpired.
Our
conditions are still the same. The core problems have not been
solved,"
he strongly pointed out, thus suggesting that we take informal
steps or
adopt loosely structured economic policies rather than radical ones
to
solve the current economic problems.
It was at this juncture that
many from the audience stood up against
him, saying that his suggestions, if
followed, would crush the dream of
the Muslims to unite economically. Many
were of the opinion that
Muslim countries had to take drastic actions now as
we were running
out of time. Dr.Ariff's "take it slow but make it
work" concept was cast
out. Although a number of participants boldly
lashed out at him, Dr.
Ariff appeared fairly composed. He maintained that the
audience
misunderstood him, as his intention was to suggest that
realistic
measures be taken instead of visionary but inapplicable ones.
"It may
seem like I am wrong now but it is better to make small efforts
now
and see that our dreams are realized later than dreaming now and
not
seeing anything at all in the future," he said ending the final
session of
the conference.
Day Three
The third day saw
further discussions on Islamic economics with Datuk
Syed Othman Al-Habshi of
IIUM starting the morning session with his
paper entitled "Islamic
Economics in the 21st Century".
Consequently, M. Shaukat Ali of the
Ministry of Planning and
Development in Pakistan took a closer look at the
finance side of
Islamic economics by presenting his paper entitled
"Creation of Money
and the Role of Central Bank in an Islamic Framework:
simulation for
Pakistan".
Once again, money was the main issue
in a paper presented by
Usamah A. Uthman of King Fahd University of Petroleum
and
Minerals in Saudi Arabia entitled "Money, interest and an
Alternative
Macroeconomic System".
The final paper for the
morning, "On the Design and Effects of
Monetary Policy in the Middle
East" was presented by Magda Kandil
of the University of
Wisconsin-Milwaukee, USA.
The first paper for the afternoon session was
entitled the "Role of
Supreme Audit Institutions in Shaping the Islamic
Economy in the 21st
Century" by Muhammad Akram Khan of the Ministry of
Economic
Affairs in Pakistan.
The last paper for the day,
"Financial Performance and Distribution
Policy of Islamic Financial
Institutions" was presented by Syed Musa
Al-Habshi from the Accounting
Department of IIUM.
Day Four
On the final day, Dr. Mabid Ali,
Director of Islamic Research and
Training Institute, IDB, presented a keynote
paper in the morning
entitled "Islamic Banking and Finance in 21st
Century". The paper
reviewed the challenges facing the researchers in
the Islamic banking
and insurance sector. The speaker outlined the essential
steps to be
taken in order to succeed in the field of research. He named
five
reasons for research failures: firstly, the lack of expertise in
economic
analysis, secondly, the lack of tools to make a good research
paper,
thirdly, the inability to pick out important topics worthy of
research,
fourthly, the misunderstanding of Shari'ah and finally, the lack
of
knowledge regarding past research.
Following that, the speaker
reviewed the success and failure of Islamic
economics, mentioning the many
efforts that were made in the early
sixties, and finally Islamic economics
developed by employing the tools
of profession. Nevertheless, Islamic
economic remains a fertile land for
economic research.
Dr. Mabid shed
light on the many areas for research by raising the
following questions as
area of research:
Should the central bank
invest newly issued money or hand it
over to
the government?
Should there be a government
deficit and how should it be
financed?
Should we allow indexation of future monetary
obligations?
The IDB research center will
multiply and produce quality
specialists and
academicians necessary for guiding Muslims
into
the next decade.
Further, he
talked about the two approaches of banks in the industrial
countries, the
commercial bank and universal bank where he suggested
a research be done to
show the differences that exist between the
Islamic and universal banks.
Dr. Mabid also discussed the issue of the lack of regulations for
Islamic
banks and the need of setting up an appropriate institution for
Islamic
economics.
Finally, Dr. Mabud put forward that the following
be established:
A new breed of economists
that are sophisticated and have
undergone
rigorous training in economics while at the
same
understanding Shari'ah.
A close tie between economics and Islamic
economics.
The practice of Islamic banking
and finance to cover 75% of
Muslim financial
resources.
The countries interested to
structure their economy based on
Shari'ah will
rise.
The IDB research center will multiply
and produce quality
specialists and
academicians necessary for guiding Muslims
into
the next decade.
In the second
session two papers were presented. The first paper,
entitled "The
Islamic Financial landscape in Malaysia" was presented
by Awang Adek
Husin of Bank Negara Malaysia (the Central Bank of
Malaysia). The paper
revolved around the Islamic banking system in
Malaysia. Husin informed the
delegates that there are one Islamic bank,
24 commercial banks, 18 finance
companies, 5 merchant banks and 7
discount houses active in Islamic banking.
In addition, there are 2
Takaful companies, 3 saving institutions and 3
development institutions
operating as non-bank Islamic financial
intermediaries.
A number of statistic were provided such as the total
assets, deposits
and the financing of Islamic banks as at the end of 1993 and
at the end
of May 1999. The statistics showed that the total assets of the
Islamic
banking system have grown from only RM2.4 billion in 1993
to
RM29.9 billion as at end May 1999.
The second paper, entitled
"Islamic Fund Management", was presented
by Rodney Wilson of Durham
University in the UK. The paper was
basically a survey of Islamic investment
funds, especially those
managed outside the UK and other European banking
entities.
The topic on managing and structuring Islamic equity funds
took up a
considerable part of the paper, where both equity and trade funds
are
covered. However, the bulk of the paper focused on the evaluation of
a
number of existing Islamic investment funds in Saudi Arabia.
In the last
session of the conference, three papers were presented. The
first paper was
entitled "Risk Sharing and Management in Infrastructure
Financing: An
Islamic Evaluation", by Mohammed Obaidullah of Xavier
Institute of
Management, India. The paper reviewed the financing
modes for investing in
infrastructure projects in developing countries
with emphasis made on the
important role of the private sector in this
area. The main objectives of the
paper was:
The introduction of suitable
Islamic modes at different phases
and
hierarchies of private infrastructure project finance.
Initiating a discussion on managing the risks
of these modes in
such projects.
The
session proceeded with Dr. Muhammed Shahid Ebrahim of the
University of
Brunei Darussalam presenting his paper entitled "Optimal
Consumption
Asset Financing: an Islamic Perspective". The paper was
theoretical in
nature and used simulation methods to find optimal
consumption asset
financing using Islamic instruments. Instruments
considered were the Bai'
Bithaman Ajil (BBA), Ijara wa Iqtina and
decreasing Mudharabah.
The
third paper was delivered by Adiwarman A. Karim of Bank
Muamalat in Indonesia
entitled "Optimal Contract for Islamic Banking:
A survey of
literature". The paper explained the economic behavior in a
free market,
with the speaker providing a summary of many papers
which was useful as a
quick reference eventhough no critical evaluation
was provided. The paper
concluded by stating that mark up financing is
similar to debt financing and
thus share similar optimality properties.
The last paper entitled
"Size and Profitability of Islamic Financial
Institutions with a special
reference to management and control issues"
was delivered by Dr. Humayon
Dar and John Presley of
Loughborough University in UK. The speakers felt that
the portfolio of
Islamic Financial Institutions (IFI) are geared towards the
credit
facilities of Bai' Murabahah/Bai' Mua'jjal (markup), and
Ijara
(leasing)/Ijara wal- 'Iqtina (lease-purchase). The speakers
attributed
this to the theory of Corporate Control advanced by Grossman
and
Hart (1982), Harris and Raviv (1988). The basic idea behind the
theory
is that optimal stakeholders of a firm are equity (who control it)
and
non-voting debt (who are content with a fixed return). As the
bulk
of
financing activities of Islamic banks are concentrated towards
quasi
debt
facilities, the speakers rationalize this to the theory of
corporate
control, where corporate entities are reluctant to
use
Mudharabah/Musharakah as that would relinquish their authority
over
their firm.
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