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Assessing the Contribution of Islamic Finance to Financial Inclusion Dr Mehmet Asutay Reader in Assessing the Contribution of Islamic Finance to Financial Inclusion Dr Mehmet Asutay Reader in the Middle Eastern and Islamic Political Economy & Finance Director, Durham Centre for Islamic Economics and Finance Durham University Business School Durham University, UK E-mail: mehmet. [email protected] ac. uk Presented at Islamic Development Bank – ADFIMI Joint CEO Seminar on “Financial Inclusion”, 40 th Anniversary of the Establishment of Islamic Development Bank Hilton Hotel, Jeddah, Saudi Arabia 23 rd June 2014

Introduction: Islamic Finance Futures · As part of this recognition, we have witnessed the Introduction: Islamic Finance Futures · As part of this recognition, we have witnessed the emergence of Islamic moral economy and Islamic finance since late 1940 s; · Islamic finance industry has progressed from humble beginnings – Concept has been rediscovered to build a USD 2 trillion industry – Global momentum behind industry: consumer, corporate and government – Islamic finance has become the proposition of choice in the GCC, and likely to become proposition of choice throughout the Muslim world; § Islamic finance in its original form is located within the foundational claims of Islamic Moral Economy, as the aim was to creating an Islamic moral economy with Islamic finance being the operational aspect of that system. § However, the new debate is: Islam based financing vs. the Shariah compliant financialisation; § This debate relates to financial inclusion/exclusion debate through providing financial services in the form of Islamic moral economy expectation so that wealth and capital can be expanded on the ground. Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 2

Financial Inclusion · Financial development is considered to have positive impact on economic growth Financial Inclusion · Financial development is considered to have positive impact on economic growth by facilitating the expansion of financial activity and financing economic activity. · This can be achieved through financial deepening through vertical and horizontal financial deepening of financial activity, which can also target to overcome financial exclusion. · In the horizontal financial deepening, it is expected that traditionally financially excluded individuals and groups to become part of the formal economic activity by utilising the available financial instruments and institutions to conduct their business. · Thus, financial expansion in such circumstances is considered to take place through bringing financially excluded individuals into the financial system whereby economic growth and development can further be facilitated. As by-product this contributes to overcoming the dual-economy nature too. Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 3

Financial Inclusion (2) · In the literature, financial inclusion is mostly related to people’s Financial Inclusion (2) · In the literature, financial inclusion is mostly related to people’s access to have a formal bank account. Demirguc-Kunt & Klapper (2012) Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 4

Financial Inclusion and poverty (3) · The literature also depicts that there is a Financial Inclusion and poverty (3) · The literature also depicts that there is a correlation between inequality/poverty and financial exclusion measured by having a bank account. Demirguc-Kunt & Klapper (2012) Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 5

Financial Inclusion and Poverty (4) · However, having bank account is not enough to Financial Inclusion and Poverty (4) · However, having bank account is not enough to explain financial inclusion; as income generation should be the target of any such strategy: Demirguc-Kunt & Klapper (2012) Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 6

Trajectories of Financial Inclusiveness · Static view of poverty—income below poverty line 1970 s—provision Trajectories of Financial Inclusiveness · Static view of poverty—income below poverty line 1970 s—provision of microcredit to the poor · Provide credit over successive years—used in productive activities— increase income levels above poverty lines · Dynamic view of poverty—prospects of present and future well-being The poor face many risks and are vulnerable Negative shocks can move households back to poverty · Paradigm shift—inclusive finance Expanding financial services to the poor that increases income and reduces vulnerability Savings, finance, insurance, money transfer services for the poor But also develop public policies together with financial institutions in providing income generation impact to have financial inclusion Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 7

Financial Inclusion and the Muslim World · Formal bank account holding is an issue Financial Inclusion and the Muslim World · Formal bank account holding is an issue in the Muslim world as well as the developing countries: Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 8

Financial Inclusion and the Muslim World (2) · Providing financial services to the poor Financial Inclusion and the Muslim World (2) · Providing financial services to the poor is important tool in alleviating poverty · The poor do not have access to financial services · Involuntarily due to economic and social reasons (Low income, high costs, high risks, information framework etc. ) · Voluntarily due to cultural and religious reasons · Muslim clients—would not deal with interest based financial services · Many poor (and rich) Muslims are financially excluded due to both involuntary and voluntary reasons · Need to provide Shari’ah complaint financial services to help them to have access to banking and financial services but importantly become stakeholders in terms of developing their micro and small businesses so that they can be helped to expand their businesses, for example. Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 9

Islamic Moral Economy Construct suggesting Economic Development and Financial Inclusion (1) · The notion Islamic Moral Economy Construct suggesting Economic Development and Financial Inclusion (1) · The notion of Islamic moral economy rests with a central principle: embeddedness; financing being embedded in real economy and noneconomic factors, such as the cultural and religious values and norms; · Islamic moral economy, as a protective social movement and anti-liberal discourse, has been conceptualised to re-embed the economy in society, and rescuing resources of the society such as labour, land money from being the ‘fictitious commodity’ by de-commodificating them has been the aim of protective social movements and anti-liberal discourses. Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 10

Islamic Moral Economy suggesting Economic Development and Financial Inclusion (2) · Other features of Islamic Moral Economy suggesting Economic Development and Financial Inclusion (2) · Other features of Islamic moral economy are: · Reciprocity and distribution; · Community and solidarity; · Convention and coordination · Collective action: cooperation including labor sharing · Embeddedness or non-economic factor. Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 11

Islamic Finance Principles Reinforce the Ethos of Islamic Moral Economy · Islamic moral economy Islamic Finance Principles Reinforce the Ethos of Islamic Moral Economy · Islamic moral economy has an explicit value framework – Based on justice, equity, human dignity, freedom of enterprise and moderation through the Islamic economy axioms, among others, such as tawhid, adalah and ihsan, rububiyah, tazkiyah, amanah, haq and hurriyah, islah, uhuwwah, khilafah and maqasid al-Shari’ah. Crass materialism Islam Aesthetic spiritualism – Based on developing and harnessing economic resources to satisfy spiritual, material and social needs of all members of the community – Based on a moral obligation to serve poor and destitute from share of wealth Islamic finance is based on socially responsible investing Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 12

Moral Economy Definition of Islamic Finance Principles: Ethos of Islamic Moral Economy in Practice Moral Economy Definition of Islamic Finance Principles: Ethos of Islamic Moral Economy in Practice (i) Prohibition of interest or riba, (ii) prohibition of fixed return (iii) money does not have any inherent value in itself; and therefore money cannot be created through the credit system. (iv) profit and loss sharing (PLS) is the essential axis around which economic and business activity takes places. (v) risk sharing (vi) participatory nature of economic and business activity through participatory financing; i. e. the shuratic (consultative) method of governing business. (vii) By essentialising productive economic and business activity, in addition to prohibiting interest, uncertainty (gharar), speculation and gambling is also prohibited with the same rationale of emphasising asset-based productive economic activity. Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 13

Islamic Finance is More than Financial Contracts Tenet-bound · Fundamental tenants are derived from Islamic Finance is More than Financial Contracts Tenet-bound · Fundamental tenants are derived from Shariah Principles-based · Concept is grounded in ethics and values – Absence of interest-based transactions – Principles akin to ethical investing – Avoidance of economic activity involving speculation – Emphasis on risk-sharing and partnership contracts – Prohibition on production of goods and services which contradict the values of Islam Embedded Financing- Real economy-linked · Islamic finance offers an alternative paradigm – Asset-backed transactions with investments in real, durable assets – Stability from linking financial services to the productive, real economy – Credit and debt products are not encouraged – Restrains consumer indebtedness Social and Development Objectives · Islamic banking is community banking – Serving communities, not markets – Aims to enable and function individuals – Open to all-faith clients – Instruments of poverty-reduction are inherent part of Islamic finance (zakat & qard hasan) A holistic approach to financing a society; in essence a value and moral proposition and more than financial contracts Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 14

Islamic Finance, in an aspirational sense of authentic meaning, aims at… Islamic banking and Islamic Finance, in an aspirational sense of authentic meaning, aims at… Islamic banking and finance aims at: §Community banking: Serving communities, not markets; §Responsible Finance, as it builds systematic checks on financial providers; and restrains consumer indebtedness; ethical investment, and CSR Initiatives; §Alternative Paradigm in terms of stability from linking financial services to the productive, real economy; and also it provides moral compass for capitalism; §Fulfils Aspirations in the sense it widens ownership base of society, and offers ‘success with authenticity’. Historically driving connectivity with the real economy Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 15

Islamic finance aims and positive impact 2 • Promoting the investment mindset rather than Islamic finance aims and positive impact 2 • Promoting the investment mindset rather than the banking mindset − 3 • Investing in real assets rather than promoting speculation and leverage Making meaningful real economy impact − Investing in asset-backed instruments and real economy ventures A growing industry promising benefits Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 16

Islamic Finance is the Outcome of Islamic Moral Economy in Financing and Banking Moral Islamic Finance is the Outcome of Islamic Moral Economy in Financing and Banking Moral screening process – Moral process through endogenising substance related issues and also through consequentialistic approach; Banking and finance needs – Definition of policy objectives – Developing risk and profit-loss sharing economy through embedded financing for the development of economy and social capital Shariah sources Fiqh al-Muamalaat contracts – Quran – Musharaka - Partnership – Sunnah – Ijtihad (reasoning) – Murabaha - Purchase-resale - Lease - Manufacturing contract – Salam – Qiyas (analogy) - Partnership – Istisna’ Shariah filter – Mudaraba – Ijara – Ijma’ (jurist consensus) - Forward sale Islamic banking and finance solutions • Prohibition on: – Interest – Speculation – Gambling • Prohibition of certain investments: − Sectors (e. g. : alcohol, armaments, financial services, gambling, pork, pornography, tobacco) − Instruments (e. g. no forward transactions, limited option use, no derivatives, short-selling) • Asset-backed transactions with investments in real, durable assets • Credit and debt products are not encouraged • Financing solutions aim capacity building and empowerment of individuals and society; • Social, human and economic development Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 17

Conceptually, Islamic Banking is Rooted in Developmental Aims of Islamic Moral Economy § IBF Conceptually, Islamic Banking is Rooted in Developmental Aims of Islamic Moral Economy § IBF can fulfill the moral economy objectives by following strategies: – Direct investments: Banks independently employ funds in profitable projects – Participation investments: Banks as capital partner with share in projects in PLS arrangement – Equity-based structures: Private equity, venture capital, project and trade finance – Ethical underpinning: Investments inherently follow International Equator Principles* – Financing the ‘unbankable’ individuals to create social capital for development through microfinancing; and other financial instruments, such as zakah funds, qard al-hassan; – Contributing economic, social and human development by returning the right of society to society and by engaging with projects to increase the social return. *Financial industry benchmark initiative, introduced in August 2006, for determining, assessing and managing social and environmental risk in project finance Historically driving connectivity with the real economy Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 18

Islamic Finance and Financial Inclusion: Achivements (1) · Islamic finance has direct impact on Islamic Finance and Financial Inclusion: Achivements (1) · Islamic finance has direct impact on economic growth through financial development by pooling of funds. · The developments of the sector indicates this: Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 19

Islamic Finance and Financial Inclusion: Achievements (2) Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance and Financial Inclusion: Achievements (2) Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 20

Islamic Finance and Financial Inclusion: Achievements (3) · The expansion of Islamic finance industry Islamic Finance and Financial Inclusion: Achievements (3) · The expansion of Islamic finance industry with its product differentiation has reached out to those Muslims who would normally avoid financial inclusion due to religious reasons; or provided inclusiveness for those who dealt with conventional banking and finance due to not having Islamic opportunities. · Expansion of Islamic finance has expanded the opportunity spaces within the financial system available for religiously concerned individuals who have income and wealth. · Thus, Islamic finance, by offering religiously constructed financial instruments, provides opportunities for Islamically concerned individuals to be integrated within the financial system; · It helps to overcome financial exclusion based on religious reasons. · In this case, financial inclusion relates to people, who may have savings, businesses and economic activity to conduct their financial and economic activity within the norms of Islam. Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 21

Islamic Finance and Financial Inclusiveness · The challenge is, however, to enable individuals, who Islamic Finance and Financial Inclusiveness · The challenge is, however, to enable individuals, who would not normally have any opportunity to engage with the financial system or to be part of the financial system due to not having any reasonable economic activity. · Therefore, an important aspect of financial inclusion is to adopt proactive strategies develop ‘enabled’ and ‘functioning’ individuals as economic development necessitates. · In this vertical financial expansion, it is essential to consider how people can be made stakeholders by developing their businesses and generate some wealth. · In such a case, financial system is expected to develop positive attitudes and policies for financing social investments (micro enterprises, for example) in an attempt to help the underprivileged sector of the society to develop themselves in sustaining their lives without ‘sustained needing’ through contributing to wealth generation at the same time. Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 22

Islamic Finance and Financial Inclusiveness (2) · Since this is a developmentalist issue, the Islamic Finance and Financial Inclusiveness (2) · Since this is a developmentalist issue, the experience has shown that commercial banks are not in a position to respond to such an essential challenge due to their construct nature. Islamic moral economy foundations of Islamic finance. · However, Islamic moral economy based Islamic finance suggests a different paradigm by going beyond the narrow definition of efficiency oriented commercial banking and by prioritising ‘human-well being’ as conditioned by maqasid al-Shari’ah. · This extensive and alternative paradigm suggests as to how individuals can be developed and how they can be helped and how their needs of developing businesses can be responded. Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 23

Islamic Finance and Financial Inclusiveness (3) · The norms and axioms of Islamic moral Islamic Finance and Financial Inclusiveness (3) · The norms and axioms of Islamic moral economy makes it essential that underprivileged sections of the society to be made stakeholders in economy and society as well by providing them the opportunity space through financial, economic and social projects so that individuals should be ‘enabled’ and ‘functioning’. · The ‘profit-loss-sharing’, ‘risk-sharing’ and ‘participatory’ nature of Islamic finance, hence, aims to serve such a purpose in responding to the social as well as financial optimality in financing. Such an aim should not be considered as ‘a voluntary’ action, but the essential consideration and aspiration of Islamic moral economy as articulated by the Islamic norms. Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 24

Islamic Finance and Financial Inclusiveness (4) · Islamic moral economy, hence, suggests that financial Islamic Finance and Financial Inclusiveness (4) · Islamic moral economy, hence, suggests that financial inclusion through Islamic finance can be achieved by two ways: (i)inclusion of individuals in the financial systems, who have the necessary means but has not had the expected set of financial options (such as Shari’ah compliant financing) available for them; (ii)to serve in line with public policy and through the aspiration of Islamic moral economy in enhancing economic development in the society by expanding Islamic financing to the larger and underprivileged sector of the society so that they can be ‘included’ in a financial system through the wealth they can create (whatever the size of this wealth can be). Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 25

Islamic Finance and Financial Inclusiveness (5) · Islamic moral economy based Islamic finance, hence, Islamic Finance and Financial Inclusiveness (5) · Islamic moral economy based Islamic finance, hence, not only provides a dynamic approach in expanding financial inclusion through overcoming the observed financial exclusion of people due to their religious norms, but also directly engaging with underprivileged sector of the society to be included in the financial system through wealth generation by essentialising investment mind-set, embedded financing (embedded in economic nature and value system) · In addition, considering community banking through Islamic moral compass. Islamic norms and Islamic financial principles, hence, essentialise a world of ‘participating’ and ‘sharing’ economy. · A critical assessment of the performance of Islamic banks indicates expansion of the financial sector but not necessarily the expansion of opportunity space for development objectives. In this new stage, hence, Islamic finance has to consider such objectives also for legitimacy, credibility, sustainability and trust. Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 26

Islamic Finance and Financial Inclusiveness (6) · While Islamic banks have successfully served the Islamic Finance and Financial Inclusiveness (6) · While Islamic banks have successfully served the first objective, they have not prioritised development objectives due to their commercial nature. · Therefore, non-banking Islamic financial institutions and instruments should be considered in responding to the second type of financial inclusion. · These can be in the form of ‘Islamic social banks’ (as in Mith Ghamr experience), awqaf system delivering on economic and financial spheres, zakah funds, Islamic micro-financing and takaful, Islamic developmentalist funds etc. · Such institutions would fit into the aspirational position of Islamic moral economy expecting developmentalist outcomes such as active and dynamic financial inclusion. Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 27

Assessing the Role of Islamic Finance in Expanding Financial Inclusiveness (1) · Application of Assessing the Role of Islamic Finance in Expanding Financial Inclusiveness (1) · Application of Islamic modes of financing at the micro-level Dilution of Islamic modes of financing · Lack of funds Limited funds from external sources Islamic MFIs have not yet tapped the sources of funds from sources (like zakah, waqf, and other charities) other · Lack of knowledge and skills Training can enhance both Shari’ah compliance and efficiency § Importantly, having a commercial mind, has not helped them to develop strategies to contribute to economic development; it seems that they only respond to the market. Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 28

Assessing the Role of Islamic Finance in Expanding Financial Inclusiveness (2) · Financial inclusion Assessing the Role of Islamic Finance in Expanding Financial Inclusiveness (2) · Financial inclusion should also be considered from a larger perspective to include the ‘rich’ in the case of Islamic finance; · A field study in some of the GCC countries show that some very large business families have been keeping away from dealing with any banks and financial inclusion including Islamic bank and finance due to their concern on shari’ah compliancy issues. · In addition, another study on SMEs in Saudi Arabia has shown the existence of ‘financial gap’ in the same way, as they mostly aims to finance their businesses through family oriented financing. · Thus, Islamic finance should develop strategies to convince such group of businesses in expanding financial inclusion, as their wealth is an important source for financial and, hence, economic growth. Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 29

Commercialisation and Financialisation preventing Further Financial Inclusion (3) • While Islamic finance has to Commercialisation and Financialisation preventing Further Financial Inclusion (3) • While Islamic finance has to be praised in the sense of providing resources for the larger Muslim societies and communities, its commercialisation and financialisation has shifted the paradigm from original claim on economic development including financial inclusiveness. · Financialisation as part of the commercial Islamic banking, as opposed to ‘financing’ understanding of Islamic moral economy has resulted in not developing strategies to extend financing to lower income and poor people, nor has it enabled to spread the wealth and capital as the original claim states. · IBF is considered re-generating capitalism within Shari’ah compliancy rather than prioritising the aspirations of Islamic moral economy in expanding economic development, poverty alleaviation and outreaching the lower income segments of the Muslim communities. Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 30

Commercialisation and Financialisation preventing Further Financial Inclusion (4) Shari’ah-based financing adheres to the inherent Commercialisation and Financialisation preventing Further Financial Inclusion (4) Shari’ah-based financing adheres to the inherent principles of the Islamic tenets Islamic finance has developed by remaining competitive with market demands… …however the spirit of Shari’a principles has lagged from its ideals · Competitive pricing · Profit-loss share financing · Familiar risk/return profile · Asset price risk sharing · “Buy-now-pay-later” mentality · “Save-now-buy-later” culture · Conducive to debt finance · Discouragement of debt What is needed is a mindset shift Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 31

Commercialisation and Financialisation preventing Further Financial Inclusion (5) A Shari’a-based mindset is critical for Commercialisation and Financialisation preventing Further Financial Inclusion (5) A Shari’a-based mindset is critical for product innovation Shariah-based solutions · Income-sharing products · Shift from debt-based product offering Examples · Venture capital and private equity vehicles and instruments to enable “real economy” play Savings & Investments Indebtedness x Shariah-compliant products · Letter of the law · · Hedging instruments for risk management using risk pooling concepts of Takaful · Savings scheme using infrastructure projects as sources of investment return · Substitute commodity-based financing products with specific asset-backed/linked products · Debt-based products to be marketed responsibly and provided conservatively Replicating conventional credit service offering Significant scope to improve the quality of product proposition Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 32

Commercialisation and Financialisation preventing Further Financial Inclusion (6) Islamic Financing in IBs and Financialisation Commercialisation and Financialisation preventing Further Financial Inclusion (6) Islamic Financing in IBs and Financialisation Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 33

Commercialisation and Financialisation preventing Further Financial Inclusion (7) Islamic Financing in IBs and Financialisation Commercialisation and Financialisation preventing Further Financial Inclusion (7) Islamic Financing in IBs and Financialisation Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 34

Commercialisation and Financialisation preventing Further Financial Inclusion (8) Islamic financing methods in 2010 for Commercialisation and Financialisation preventing Further Financial Inclusion (8) Islamic financing methods in 2010 for selected banks Source: Shafi Jan (2013) Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 35

Conclusion · Commercialisation and market pressures has shaped industry’s development to date – Competitive Conclusion · Commercialisation and market pressures has shaped industry’s development to date – Competitive forces have ensured replication of conventional offering – Global regulators initially dismissive, now “no obstacles, no favours” – Global debt-friendly monetary system has hampered development of equity based propositions · Islamic finance should embrace an evolving role – Industry should perform role of asset managers with socio-economic banking concerns to contribute to economic development so that people can generate income and wealth to have Islamic bank account; – Islam-based vision based on the aspirations of Islamic moral economy is next stage of industry development: from replication to innovation to re-embedded financing and de-commodification; – Islamic financial institutions have an important role to play in the Islamic world’s development The distinctiveness of Islamic finance should be preserved to make a meaningful change Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 36

Conclusion: The Industry Has a Key Role to Play in the Path Towards Economic Conclusion: The Industry Has a Key Role to Play in the Path Towards Economic Development Invigorate human capital − − Promote education and build academic “centres of excellence” Facilitate training and skill broadening institutions Deepen access to finance Build social and physical capital base Build wealth distribution channels − − Uplift SME sector contribution to GDP Provide efficient zakat distribution system Grow economy’s “wealth manager” base Integrate and develop waqf models and institutes with the objective of developing Islamic moral economy system Promote OIC trade bloc and connectivity − − − Instigate and enhance mutual cooperation Build efficient governments Grow “OIC-national” companies Building a sustainable socio-economic development model with human development objective through aiming at falah with the ihsani social capital Islamic banking is one tool to enable economic development Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 37

For socially and environmentally responsible value oriented just economic and financing system, which can For socially and environmentally responsible value oriented just economic and financing system, which can enable individuals to function and which can aim at well-beings of individuals… Utopias should exist so that realities can be constructed and engineered… Thank you… Mehmet Asutay, Islamic Moral Economy Foundation of Islamic Finance| 38