Why The Nobel Price Of Economics (2012) Enhance the Position of Islamic Finance towards Repugnant Markets?
By Maan Barazy
Certified Shari'a Adviser and Auditor (CSAA- AAOIFI Certified) - MA Islamic Comparative Jurisprudence - BS International Economics - Managing Partner And CEO of Data and Investment Consult-Lebanon
"How did commercial, banking, and similar money-making pursuits become honorable at some point in the modern age after having stood condemned or despised as greed, love of lucre, and avarice for centuries past?"
Max Weber quoting Benjamin Franklin on the virtues of responsible lending and borrowing
ABSTRACT:
Our understanding of market stability and the predictability of financial crisis has fallen short of the concept of repugnance. Repugnance creates distortion in market design and might be a catalyst to financial crisis. Roth argues that "the real repugnance that some people feel toward some transactions means that economists interested in proposing and designing markets must take this repugnance into account." If one hopes to design more efficient and ethical systems of exchange, cultural notions of repugnance can't simply be dismissed as irrational. This would seem to be an argument with implications beyond economics. When repugnance is taken into consideration; markets were most stable ; a case in point is the behavior of Arab and Islamic market mechanisms under international financial crisis. Regulators have put outstanding weight into designing deterrence system for crisis and operational fraud; hence it would have been more rewarding to study causes of repugnance in the system. There is a greater need today for international markets to understand the notions of interest-free exchanges LARIBA and particularities of Arab markets exchanges if one hopes to design more efficient and ethical systems of exchange, cultural notions of repugnance can't simply be dismissed as irrational. Markets looses their efficiency and some markets become limited because the very existence of a market in some goods is considered repugnant. A repugnant market becomes therefore an area of commerce that is considered by society to be outside of the range of market transactions and that bringing this area into the realm of a market would be inherently immoral or uncaring. In my conclusion I will also bring the motion of repugnance closer to the international system understanding of growth which is repugnant in Islamic dictums. A Bank for international settlements Working Papers (No 381) "Reassessing the impact of finance on growth" http://www.bis.org/publ/work381.pdf; Stephen G Cecchetti and Enisse Kharroubi give breath taking results on the study the complex real effects of financial development and come to two important conclusions. First, financial sector size has an inverted U-shaped effect on productivity growth. That is, there comes a point where further enlargement of the financial system can reduce real growth. Second, financial sector growth is found to be a drag on productivity growth. Our interpretation is that because the financial sector competes with the rest of the economy for scarce resources, financial booms are not, in general, growth enhancing.
sENder : Maan Barazy
Economist - Certified Shari'a Adviser and Auditor (CSAA- AAOIFI Certified) - MA Islamic Comparative Jurisprudence - BS International Economics Managing Partner And CEO of Data and Investment Consult-Lebanon – The Centre For Islamic Finance -
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بسم الله الرحمن الرحيم
السلام عليكم ورحمة الله وبركاته
نلفت عنايتكم إلى أن موقع مجلة الاقتصاد الإسلامي العالمية يقوم بتجميع أخبار الاقتصاد الإسلامي في العالم ويضعها ضمن خيار: (( الأخبار الاقتصادية )).فتفضلوا بزيارة صفحة الأخبار الاقتصادية..نحن نرحب بإضافة أخبار الاقتصاد الإسلامي ( أحداث - مؤتمرات - أخبار شركات - .. الخ ).. فكونوا مراسلي مجلة الاقتصاد الإسلامي العالمية.. وسوف تقدم المجلة شهادة خبرة سنوية للمراسل يستفيد منها في دعم سيرته الذاتية..علما أن المجلة تزود الكتاب والاقتصاديين الذين ينشرون أبحاثهم وأعمالهم في المجلة بكتاب بفيد بذلك..
لا تنس الصلاة على نبي الرحمة والدعاء الصالح للمسلمين..
Dr. Samer Kantakji,
Islamic Business Research Center Chairman,Global Islamic Economics Magazine Editor,AREES University Chairman,
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سياسة النشر في المجموعة:
ترك ما عارض أهل السنة والجماعة... الاكتفاء بأمور ذات علاقة بالاقتصاد الإسلامي وعلومه ولو بالشيء البسيط، ويستثنى من هذا مايتعلق بالشأن العام على مستوى الأمة... عدم ذكر ما يتعلق بشخص طبيعي أو اعتباري بعينه باستثناء الأمر العام الذي يهم عامة المسلمين... تمرير بعض الأشياء الخفيفة المسلية ضمن قواعد الأدب وخاصة منها التي تأتي من أعضاء لا يشاركون عادة، والقصد من ذلك تشجيعهم على التفاعل الإيجابي... ترك المديح الشخصي...إن كل المقالات والآراء المنشورة تُعبر عن رأي أصحابها، ولا تعبّر عن رأي إدارة المجموعة بالضرورة.
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