A BSTRACT : In the People’s Republic of Bangladesh, the poverty has been a main challenge since the last decades and its alleviation is one of the country’s strategic goals to achieve MDGs by 2015 to fight poverty and improve the standards of living of underprivileged population. Micro and SME financing have been playing important role in poverty reduction by creation a gainful employment opportunities. The Islamic banks and the Islamic windows of conventional banks in Bangladesh should pursue vigorous promotion of Islamic micro and medium scale enterprise (SME) finance, in step with the country's concerted efforts for faster poverty eradication with deeper, wider financial inclusion. This paper determined the role of the Islamic microfinance in povertyalleviation efforts in Bangladesh and how this role can be enhanced. It was intended to establish and recommend Islamic microfinance and its principles that could raise poverty reduction and economic development in the country. Especially, this paper tries to answer the following questions: Can Islamic microfinance help alleviate poverty? Should Islamicfinance “innovation” include innovative ways to alleviate poverty? Because an institution is “Islamic” does this mean it has a particular obligation to invest in economic or community development? How does the concept of Islamic microfinance operate to serve the goal of povertyalleviation in Bangladesh? For this purpose, this paper tries to give some possible reflections that help us to develop the analytical tool that may help us to improving the way towards the amplification of the analysis paradigm.
Abdul Rahman and Dean (2013) summarised four main challenges Islamic microfinance providers face, these are: market penetration, economic viability of Islamicfinance, high transaction costs, and the effectiveness of Islamic microfinance in alleviating poverty. To a large extent, these challenges mirror the challenges faced by conventional microfinance providers identified by Ahmed (2002). Operating a microfinance institution requires high transaction costs to maintain economic viability. However, as Smolo and Ismail (2011) pointed out, many Islamic microfinance providers have not used all sources of funding or Islamic financial instruments; in particular, religious endowment (waqf and zakat) could be added into the sources of funding for helping financially disadvantaged groups. Moreover, microfinance providers are created for the purpose of helping people who typically live in deprived areas with a high unemployment rate, recurring natural disasters, or a challenging macroeconomic environment (GIFR, 2016). When an entire community is below the poverty line, the major challenge for the microfinance provider is to determine which business model could sustain in such an environment.
Islamic banking is a rapidly growing phenomenon in the international financial market. The global market for Islamic investment products was growing at a remarkable pace of approximately 15 to 20% annum. After the emergence of the era of globalization Indian financial sector had opened up. Foreign investors, both, individual and institutional were allowed to invest in India and Indian investors make similar investments abroad. The international financial market enjoyed the existence of Dowjones Islamic index. Malaysian financial market had Shariah index. In this scenario Indian financial regulatory authority also made enough steps to promote Islamic financial products. It will promote the flow of foreign direct investment and growth of the country. Islamic financial instruments are fit for infrastructure financing than the conventional interest based system. In Islamicfinance various instruments including Isthisna, Mudaraba and Musharaka are best fit for infrastructure finance. Several projects in the country including Kerala and Maharashtra state government are thinking on the way. India needs a jump in the infrastructure sector by constructing new roads, bridges, metros, railway lines etc. for the growth of the country. But the financing is problem. If India are ready to raise funds by using Islamic modes of financing it is expecting flow of funds from different nations. So the government tries to increase infrastructure facilities by attracting funds, using these modes.
In Nigeria, poverty has continued to ravage the greater populace despite its plentiful agricultural resources and oil wealth. Some of the crimes being committed in Nigeria, such as human trafficking, kidnapping, armed robbery and various insurgencies, may be linked to poverty (Ayegba 2015). These crimes have been hampering peace and sustainable development of the country. Nigeria is the 10th largest producer of crude oil in the world and the sixth largest exporter among Organization of Petroleum Exporting Countries (OPEC)s (Odeh 2011), in addition to other untapped solid mineral resources. Nigeria has retrogressed to become one of the 25 poorest countries in the world (Ekpe, 2011). Seventy per cent of Nigerians live on less than US $1.25 a day (Aidelunuoghene 2014:117). Poverty is especially severe in rural areas, where up to 80% of the population live below the poverty line (International Fund for Agricultural Development 2012:2). Today many Nigerians are migrating to western countries because of poverty and unemployment. Nigeria is among the 189 countries that endorsed the Millennium Development Goals (MDGs) in 2000, which has ‘eradication of extreme poverty and hunger’ by 2015 as its number one goal. To fight poverty, the Nigerian government has over the years instituted programmes and policies for poverty eradication and/or reduction. However, poverty has persisted and has continued to create socio-economic challenges in the country. It has become evident that the government alone cannot eradicate this malaise, hence the question whether the church has to play any role. Why have government’s poverty reduction programmes failed? How can the church bring about better living standards for the vast majority of Nigerians? Focusing on the Catholic Church, this article tries to answer these questions.
As a matter of fundamental principle, shariah law forbids any practices that are considered unfair and exploitative, and it promotes and encourages the welfare of the population (Crawford et al. 2010). Shariah provides sufficient tools of finance to meet all the lawful needs of man for commercial and investment transactions. These tools are based on the maxim of al-Ghanam bil-gharm. Al-Ghanam, in this context, means economic gain, profit and yield, whereas Al-Gharm refers to loss, risk and liability. The principle, therefore, connotes that no person is allowed to invest in a way that generates profit without exposing himself to the risk of loss rather it exposes both parties to the outcome of their deal whether it is a profit or a loss (Rosly 2005). Islamic instruments of finance are indeed, just and fair in that they do not take-side with any of the contracting parties to the disadvantage of the other (El-Gamal 2002; Schoon 2008; Thani et al. 2010). Nevertheless, Shariah encourages all parties to take every precautionary measure to procure their due profit, avert and/or minimise loss. 5. THE PRINCIPLES OF ISLAM IN CONTRACTS AND FINANC E The Quran sets out principles of equity, justice, fairness, morality and social welfare, among others, as preferable underpinnings of any human society. It was explained in the Quran through surah Al-Hadid 57:30, Al-Baqarah 2:30, Al-Ahzab 33:72 and Sad 38:26, that Allah (God) creates and owns everything and human beings therefore hold wealth on amanah (Trust) for God to be spent and dealt with accordingly. The beneficiary of such wealth, held by any human being, is the collective community of humans whose interest must be served in spending or dealing with money. Contractual dealings, whilst governed primarily by the principle of permissibility and recognising the freedom of the individual to contract freely (see Quran - surah Al- Maidah 5:1 and surah An-Nisa 4:29), was nonetheless to operate within the ambit of fairness as between the parties and social justice.
Total assets of Islamic banking in Pakistan reached Rs. 313 billion by June 2009. The financing and investment portfolio of Islamic banks reached Rs. 195.0 billion by June 2009. In terms of market share, total assets, financing & investment and deposits reached 5.1 percent and 4.2 percent and 5.2 percent, respectively, at end June 2009. The deposit base of Islamic banks reached Rs. 238 billion at end-June 2009. (Source: Business Recorder, September 09, 2009). Lately, the Vatican said banks should look at the rules of Islamicfinance to restore confidence amongst their clients at a time of global economic crisis. (Source: Osservatore, March 04, 2009). However, Islamicfinance has been criticized by some circles in using conventional benchmark in pricing products, using more or less the same product structure and predominantly using debt based modes of financing. This paper takes an alternative approach and goes beyond practiced Islamicfinance to suggest an alternative financial framework.
Economic analysis of crime and criminal law addresses the question of individual welfare (utility) maximization through optimal allocation of resources and time in accordance to their relative returns. India is chosen as the case study because it has to carefully channel its funds and resources towards economic growth, povertyalleviation and crime deterrence concomitantly. The results indicate a positive and statistically significant impact of poverty, inequitable income growth and low quality of the legal system on incidence of total property-related crimes. Moreover, the elasticity figures suggest that poverty has the highest impact on robberies. Most convincing result comes from the figures of elasticity of education with crime.
be briefly elaborated below. The whole economy would suffer, as it misses the opportunity of cashing in on such benefits. The second and less apparent result would be a conspicuous exploitation of the investment account holders. These provide financial resources under the rule of Mudaraba which means that they will share in the profit and loss that may take place on the asset side. Meanwhile, the asset side of IBFI mimicking conventional finance would remain subject to default risks similar to those faced by conventional institutions. In addition, the risks faced by these assets are significantly higher because of the use of the classical loan contract without resorting to either monitoring or governance. In this case, information asymmetry would aggravate the risks of adverse selection and moral hazard. Therefore, the investment accountholders would bear higher risks which they have to share, without enjoying higher returns associated with real investments. In the meantime, shareholders would continue to maximize profits, while leaving investment account holders to shoulder a bigger share of the risk. This is an obvious redistribution of wealth in favor of the former group. Pessimists believe that the Islamicfinance industry (IFI) is clinically dead, awaiting announcement of demise and burial. This will occur precisely when the public realizes that the industry has converted itself into some other industry that mostly deals with selling present for future money through contrived sale contracts.
On the effects of GDPPC thus economic growth on poverty reduction, the outcomes show that the coefficient is positive and significant for all the countries. Thus, an increase in the level of economic growth, as measured by GDPPC, actually reduces poverty rate. This result goes contrary, with Acocella (1998) who stated that, it is important to remember that growth does not always impact human development. Growth may happen without significant effects on human development, especially regarding the poor. Chani et al. (2011) in his study confirmed that there is a negative significant of economic growth on poverty reduction in the short run. This results also consistent with a study by Son and Kakwani (2004) who demonstrated initial levels of economic growth and development including income inequality have significant effects on poverty reduction. This result proposes that the most operative method for poverty reduction is concentrating on economic growth programs geared towards poverty reduction
The form of domestic energy has a direct bearing on demand on fuel wood. Because firewood and poles were important wood products, the respondents were asked how they acquired and used them. Information on domestic forms of energy was critical in understanding the relationship between poverty and forestry. Excessive use of fuel wood to meet domestic energy resulted in illegal felling of trees, forest encroachment and soil erosion that in turn affect crop production and other related activities. The data indicated that, 84% of the respondents used firewood for cooking, 15% used charcoal and only 1% used paraffin. The data further showed that 45% respondents depended on firewood for lighting while the remaining 55% used paraffin for lighting purpose. Collecting fuel wood was the responsibility of women and children. Most villagers gathered most of their fuel wood from their own farms, although they may have supplemented it with fuel wood from forests. Respondents revealed that dead wood formed a major component of firewood, but for those villagers close to forests, harvesting of green wood was a common practise that contributed to deforestation. Obtaining exact figures on quantity of charcoal used at household level and also the amount of income got from trading of forest fuel was difficult to solicit from respondents due to fear caused by current ban on felling of trees in government forests. However, a visit to these forests showed evidence of ongoing logging of trees and charcoal burning although the latter was to a far lesser extent. The survey established that most households cooked in the ‘open air’, which was known to consume a large amount of firewood. There was, therefore, need to introduce the energy saving jiko so as to save the forests from excessive logging. Majority of the villagers said that it was more difficult to collect fuel wood at the time of the survey than it was five years previously.
As an innovative povertyalleviation theory, Precision povertyalleviation is far from enough in terms of research breadth and depth, and there is a big gap be- tween theoretical research and practical operation. At present, some scholars analyze and study the dialectical thinking logic of Precision povertyalleviation from the perspective of philosophy. For example, Xie Pingan’s Philosophical Thinking On “ Precision PovertyAlleviation ” describes the specific meaning, characteristics, methods and practical significance of “Precision poverty allevia- tion” from a philosophical perspective . The author also thinks that accurately grasp internal cause and external cause for povertyalleviation, the poor people and the poor areas is the internal cause, support units, cadres and policy is the external cause, “only to catch the regional poverty internal cause, both the ex- ternal cause at the same time, by flexible and reasonable measures, suit the re- medy to the case, can really make in the phase of poverty population out of po- verty.”  It from the particularity of contradiction and all from the reality to discuss the precision of povertyalleviation philosophical method. Some scholars think about Precision povertyalleviation from the perspective of theory and re- ality. For example, Wang Sitie believes that Precision povertyalleviation is a po- verty alleviation method that USES scientific and effective procedures to pre- cisely identify, precisely assist and precisely manage poverty-stricken objects ac- cording to different environments and conditions of poverty-stricken farmers in different poverty-stricken areas . Li Kun, Ye XingJian in Precision PovertyAlleviation in Rural Areas: Theoretical Basis and Practical Situation Analysis claim that accurate povertyalleviation of poverty reduction concept such as is both a pro-poor type means of poverty reduction from traces the rights poverty of theory and inclusive growth poverty concept, the concept of participatory po- verty alleviation, and collaborative anti-poverty theory, trickle-down theory and pro-poor theory, and pay attention to the cooperative povertyalleviation mul- ti-party participation, coordination . Wang Sangui and Guo ZiHao believe that the most basic definition of Precision povertyalleviation is that poverty al- leviation policies and measures should be Precision at the truly poor families and population, and various factors and obstacles leading to poverty should be fun- damentally eliminated through Precision assistance to the poor population, so as to achieve the goal of sustainable povertyalleviation .
The history of Islamicfinance in the United States began with the grassroots efforts of American Finance House-LARIBA, which in 1987 began offering Shariah compliant home financing products. LARIBA is a finance lender in Pasadena, California that began using investment capital from individual American Muslims to provide home financing to other American Muslims. As early as 1993 a major international bank worked with both a US mortgage bank and a key Islamic bank to structure an Islamic home finance program. In 1997 the United Bank of Kuwait (UBK), operating in the United States as a Federal branch under the National Bank Act, applied to the Office of the Comptroller of the Currency (OCC) for guidance on a Shariah-compliant ijara (lease-to-purchase) home financing product it sought to offer to US customers. This program was named Al-Manzil. Abdulkader Steven Thomas, who made the request on UBK's behalf, said of its importance: "The pioneering regulatory interpretations obtained by the United Bank of Kuwait have begun to open both the door to scalable funding for Islamicfinance in America, the development of securitization, including participation by the government sponsored entities” (Man, p. 67).
education,a proper treatment for ensuring a sound health. This paper is focusing on contribution of microfinance on povertyalleviation in developing countries like Bangladesh. One such poverty palliation weapon is micro finance, which is worldwide recognized since the 1990s. Besides, it is proved to have a positive impact to reduce poverty in Bangladesh (Hossain & Knight, 2008; Venkataramany & Bhasin, 2009; Chemin, 2008). Microfinance has proved to be significantly responsible for alleviating poverty within the rural areas where it has been established. While it still has a long way to go in gaining self-sufficiency and in enhancing its reach and impact, it has made a difference in the lives of many individuals. (Ashish Sharma, 2015). The effects of microfinance programs on poverty-reduction are still significant after twenty years of operation. However, it seems that for the most part, activities supported by microfinance have not been greatly diversified over time. (Khandker & Samad, 2016). The main objective of the study will be achieved throughout the various analysis and data collection. The overall study aims to evaluate and examine the role of microfinance in eradicating the poverty in developing countries like Bangladesh especially in rural areas.
Islamicfinance is the only example of a financial system directly based on the ethical precepts of a major religion, providing not only investment guidelines but also a set of unique investment and financing products.” Islamicfinance is based on Shari'ah, the Islamic law that provides guidelines for multiple aspects of Muslim life, including religion, politics, economics, banking, business and aspects of the legal system What Shari'ah compliant financing (SCF) seeks to do is to shape financial practices and accompanying legal instruments that conform to Islamic law. Major financial principles of Shari'ah include a ban on interest, a ban on uncertainty, adherence to risk-sharing and profit-sharing, promotion of ethical investments that enhance society and do not violate practices banned in the Qur’an and tangible asset-backing.(Elasrag, 2011) Money, according to Islamic teachings is a measure of value, not a commodity. Debt is a relationship in which risk and responsibility are shared by all parties to a contract. Money must be put to practical use in creating real value for the participants of the transaction. It must be used to create, and not be a commodity in on and of itself. It because of this that the perception of hoarding capital, and the earning of a passive return on capital keyed to the passage of time, -i.e. interest – is prohibited. In short, money must not be made from money.
It is on record that about half of the world's population (about three billion people) lives on income of less than two dollars a day (Goel and Rishi,2012) while 70 percent of the extremely poor live in rural areas (IFAD, 2011, Mustapha et al,2014). This is also aggravated by the fact that one child out of five living in these poor communities does not live to see his or her fifth birthday! Hence, in September 2000, the United Nations declared Millennium Development Goals (MDGs) in order to ensure global development. The major policy thrust of this program is to make life more meaningful to the poor and downtrodden. By implication, reduction of poverty and hunger is adjudged to be the basic root of all other problem issues focused on MDGs (Kalirajan and Singh, 2009).
The contribution of women is highly needed in Nigeria now that many povertyalleviation programs introduced by successive governments failed to achieve their objectives. Agbionu (2013) stated that one of the major reasons for the failure was because many of the programs were usually politically motivated with selfish interests. For instance Eyuiche (2010) stated that Obasanjo led PDP government announced a ten billion naira povertyalleviation program sometime in May 2000. The program was criticized according to the report for its political undertone. The critics confirmed that the money was used to attract voters to PDP. Specifically, the report stated that ₦3, 500 of the money was given to each of the relations of party members while the poor people were left out. Many other programs aimed at alleviating poverty in Nigeria have all failed as well because of insincerity of the policy makers and policy implementers. Some of the policies for povertyalleviation would have yielded fantastic results but selfishness, insincerity, and other social ills crippled them. This is why poverty in Nigeria has persisted and if drastic measures are not put in place to address it, it will definitely drag the name and reputation of Nigeria to the mud hence this study. In addition to the view above, McConnel (2007) is of the opinion that women have enormous potential to bring prosperity in the world and therefore encouraging women entrepreneurship is very important.
ranking using head count ratio fluctuates from year to year. Once project site is selected the participation of poor in construction work is ensured by keeping wages lower than the prevailing market rate. Hardly any information pertaining to wage rates paid to different categories of workers is available to determine the applicability of the above cited self targeting. That public works program in the past have been politicized with attendant misgovernance and sub-optimal use of resources appears to be a foregone conclusion. However, these programs constitute as one of the major interventions for rural development, employment generation and povertyalleviation. The challenge therefore is to strengthen the institutional structure and ensure better governance. In addition there is a need to allocate sufficient funds for maintenance of infra-structure to reap benefits from the past investments. Major initiatives in the construction of new facility holding out potentials for kickback and constituency fortification have to be resisted.
The World Bank defines the characteristics of poverty such as hunger, lack of shelter, because of illness and cannot visit a doctor, cannot go to school, illiteracy, work less, fear for the future, loss of a child due to illness, as well as the lack of representation and freedom (World Bank, 2005). Pakpahan et.al (1995) argues poverty is often characterized by one or a combination of: low income, infant mortality, poor nutritional status, poor housing, low education, and health status Indonesia experienced fluctuations in the number of people living below the poverty line long economic .Crisis has caused a significant increase. Of the 22.5 million people in 1996 to about 49.5 million in 1998. Although this number was reduced to 35 million people in 2005, but increased again to 39 million in 2006, due to rising fuel prices in late 2005 and early 2006. In 2015 the number people living below the prosperity line is 28.59 million people or 11.22% from the total. In the period September 2014-March 2015, both the Poverty Depth Index (P1) and Poverty Severity Index (P2) tends to increase (BPS 2015). This shows the failure of Indonesia to reduce poverty, and even the main objective of national development is to improve people's welfare. Failure to fight poverty can be seen from the failure of development.
The analysis of Islamicfinance and the application of successful sharia compliant models in Islamicfinance to intellectual property is a novel area of research, bringing together key lessons learnt from the success of Islamicfinance, international intellectual property laws and applying them to the development of an integrated approach to intellectual property rights in the GCC and similar religious states. This is an innovative area of research as Islamicfinance is a trillion dollar industry and most importantly withstood the financial crisis when conventional banking collapsed. Given the intellectual property market has the potential for growth in developing states, an innovative model incorporating Islamicfinance principles with intellectual property to create an integrated intellectual property model, an Islamic intellectual property model. Therefore Islamicfinance can act as a springboard to creating a modified sharia compliant intellectual property protection model. Through the development of an international integrated approach to intellectual property rights which takes into account; the structure of developing states, international agreements and pressures, the international institutions, Islamicfinance and both societal and religious views will lead to a novel approach to international intellectual property protection.