An Islamic Perspective on Alt Finance
Discover a revolutionary exploration of life's grand design and the evolving intersection of economics, finance, and Islamic principles in a world beyond our control.
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Does anyone have similar or alternative approaches, particularly from Eastern or Asian cultures and religions?
The challenge with the behavioural changes required is that for someone who doesn't believe in an afterlife, there’s no logical reason to behave in this way, as they believe life is only on this earth. As a result, they may be pragmatic and not necessarily choose to be generous or engage in risk and reward partnerships. How might we motivate these individuals to adopt such behavioural changes?
In the 6th article, the Islamic models we can embed today are listed again. Have you seen any recent business models innovating around these models?
I see some funds from incumbent banks, such as HSBC, claiming to be Sharia-compliant. However, their revenue is essentially based on interest rates, which leaves me a bit confused. Does anyone have any insights on this?
1. "The document outlines various Islamic financial models such as Waqf, which involves endowing assets for public welfare, and Mudaraba, where one party provides capital and the other manages the business, sharing profits based on a pre-agreed ratio." 2. "In Turkiye, it's a common practice for individuals to anonymously pay off debts recorded in local shop ledgers, relieving others of their financial burdens." 3. "Participatory design and crowdfunding through Sukuk are methods to involve communities in co-creating solutions and funding public projects, ensuring shared ownership and societal impact."
1. "The document explores the concept of increasing wealth through generosity, contrasting the etymological roots of 'zekat' and 'riba,' and emphasizes that giving away, whether through money or acts of kindness, is a meaningful way to impact the world." 2. "Leaders who prioritize serving society over personal gain can reduce corruption and drive positive transformation, aligning with modern management theories." 3. "Effective resource allocation should be evidence-based, responding to societal demand and leveraging community resources for sustainable solutions, rather than relying solely on government intervention."
1. "New business models are emerging to offer alternatives to traditional finance, aiming to create a fairer system by embedding complementary services and addressing underserved markets, particularly those seeking sharia-compliant options." 2. "Despite challenges posed by the current fractional reserve banking system, there are historical alternatives to interest-based finance that require behavioral changes and concrete actions rooted in humane principles."
1. "In the 16th century, the practice of fractional reserve banking began, where banks held only a fraction of deposited gold in reserve and lent out the rest, creating more money than they physically had." 2. "This system has led to increased economic inequality, as those with money and creditworthiness can access more funds, while those without cannot." 3. "Fractional reserve banking contributed to inflation and price disruptions in the market, exacerbating wealth and opportunity gaps."
1. "Wealthy individuals often choose to save and secure their wealth through various means, such as buying property or lending money with interest, which allows them to earn money without direct economic production." 2. "Borrowers take on significant risk, needing to work harder to pay off debts with interest, a situation that can be mistaken for economic growth."
1. "Humans have the ability to choose their intentions and actions within a predetermined framework, adapting to circumstances beyond their control." 2. "Individuals contribute to the economy through various roles and use money as a medium of exchange." 3. "Sometimes requiring partnerships or debt to scale or start new ventures."