Islamic Economics and Economic Development
This chapter discusses the success of institutions of Islamic economics. According to the author, Islamic economics is part of the Islamic fundamentalist movement gaining ground in large parts of the Muslim world. He argues that the implementation of Islamic principles has been restricted to eliminating interest from financial transactions and that from a religious point of view, the success of Islamic banking has been limited. Drawing upon evidence from the economic development literature, the paper concludes that the most viable and fruitful application of Islamic banking is in the form of rural development banks.
© 1998 Norwegian Institute of International Affairs (NUPI)
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