7 research outputs found
Al-Mubadarat Al-Riyfia: an Islamic finance product for the underserved segment and the third sector of the economy / Adamu Ahmed Wudil and Rislanudeen Muhammad
No full textThis paper presents al-Mubadarat al-Riyfia, an innovative Islamic financing product designed to serve the marginalised segment and the third sector of the economy. This paper aims to address the disparity in Islamic finance by emphasising inclusiveness and collective economic well-being. Al-Mubadarat al-Riyfia adopts a group-based approach and focuses primarily on the real business sector, aligning with the principles of value-based intermediation (VBI) in Islamic financing. The primary objective is to provide sustainable financial services to households at low income levels, serving financial needs that often fall within the range of approximately RM500 to RM1000 (approximately US$125-250). The initiative seeks to reach an estimated 40 million households worldwide. This initiative not only addresses the pressing issue of financial inclusion but also contributes significantly to the evolution of Islamic finance. It represents a pioneering effort to integrate underserved populations into the economic mainstream while upholding Islamic finance principles. The study's unique contribution lies in its potential to reshape the landscape of Islamic finance, foster shared prosperity, and provide a model for sustainable development
Government budgets and social development in Africa: moderating effect of government effectiveness
No full textThis study investigates the relationship between government budgets and social development in Africa, considering the moderating effect of government effectiveness. Using data from Human Development Reports and World Bank, we employ the Difference Generalized Method of Moments (DGMM) estimation technique. The findings reveal that past HDI levels significantly influence the present, while government budgets, and the interaction between government budgets and government effectiveness negatively impact human development index. Economic growth positively affects HDI, but larger population sizes pose challenges. The study underscores the importance of strategic budgetary allocations, targeted governance reforms, and holistic development planning. The study enriches the discourse on African social development by addressing critical gaps and offering actionable insights for policymakers, researchers, and international organizations committed to achieving sustainable social development in the region
Does u-shaped relationship hold between foreign aid and human development index across African countries? an empirically analysis
No full textThis study examined the link between foreign aid and human development index (HDI) in African countries using data for 54 African countries from 2013 to 2022. The 2-step system GMM is applied for foreign aid and human development index nexus while the robustness check is done by Difference GMM. The study found a negative relationship between foreign aid and human development index as well as a positive relationship between the squared foreign aid and human development index, suggesting a U-shaped relationship between foreign aid and HDI. This indicates that aid effectiveness is contingent on its quantity. On the other hand, government budget, and government effectiveness exhibit negative relationship with human development index. The study underscores the importance of targeted foreign aid, efficient budget allocation, effective governance and prioritize attracting high-quality Foreign Direct Investment (FDI) for sustained human development. Policymakers should prioritize governance reforms to enhance the effectiveness of aid. Strategic planning that considers the quantity and quality of aid is essential for positive human development outcomes in Africa
Achieving social development in Africa through Eafricamuamalat
No full textThis paper looks at how Islamic finance-based financial technology (IFT) solutions like eAfricaMuamalat can help to foster social development on a continent where the needs are great like Africa. It examines how eAfricaMuamalat can face up challenges such as poverty, lack of education and medical supplies as well as business operation through sustainable finance models. This paper takes a comprehensive approach including literature reviews and strategy papers. It conducts systematic analysis to confirm the compatibility of eAfricaMuamalat within Maqasid al-Shari’ah theory, integrating with a range of sustainable financing models that creates an ecosystem for social and economic development. Crowdfunding, impact investment, peer-to-peer lending, zakat, waqf and sadaqa all exist within eAfricaMuamalat. It is a comprehensive tool for investment, bond communities and fill gaps in inclusive finance. Simultaneously, presenting opportunities for change and charity work as well as the integration of resources within African countries. This paper also contributes to existing literature by introducing a new manner to incorporate Islamic financial principles into cutting-edge innovative financing models. It brings to light the potential of platforms such as eAfricaMuamalat in transforming the social dynamics of communities confronting outstanding problems of social development
Foreign aid and poverty reduction in developing countries: a systematic literature review
No full textThis systematic literature review examines the relationship between foreign aid
and poverty reduction in developing countries. The review identified and analyzed 50 relevant
studies that were published between 2010 and 2021. The studies were selected based on specific
inclusion criteria, including a focus on foreign aid and poverty reduction in developing countries.
The results of the review indicate that foreign aid can play a positive role in poverty reduction when
it is effectively targeted and implemented in conjunction with good governance. The studies suggest
that aid can be used to finance critical social development programs such as healthcare, education,
and poverty reduction initiatives. The review also highlights several challenges associated with
foreign aid, including the potential for aid dependency, the risk of creating distortions and
undermining local institutions, and the issue of corruption in countries with weak governance.
Overall, the literature suggests that foreign aid can play a critical role in promoting poverty
reduction in developing countries, but that its effectiveness depends on a range of contextual
factors. The review provides insights for policymakers and practitioners seeking to use foreign aid
to promote poverty reduction in developing countries
Government budgets and poverty reduction in developing countries: a systematic review of the role of social welfare programs and the challenges ahead
No full textThis paper presents a systematic literature review of 25 studies published between 2010 and 2021 on the relationship between government budgets and poverty reduction in developing countries. The review identifies a positive relationship between government spending on social welfare programs and poverty reduction. Specifically, increased spending on education and healthcare has been found to have a significant impact on reducing poverty levels. The review also highlights the importance of targeting government spending to specific populations and regions where poverty levels are high, and the challenges and limitations of government spending in poverty reduction efforts, such as corruption and political instability. The paper concludes with important policy implications, such as the need for increased spending on social welfare programs, addressing corruption and mismanagement of government funds, and targeting spending to specific populations and regions where poverty levels are high. The review provides insights for policymakers and practitioners working in the field of poverty reduction, emphasizing the importance of good governance, transparency, and accountability in ensuring that government budgets effectively contribute to poverty reduction
Islāmic finance and poverty reduction in African countries: an empirical analysis
No full textThis paper examined the effect of Islamic finance on poverty reduction in 53 African countries over the period 2013 to 2022. Islamic finance, based on Islamic principles and values, emphasizes ethical conduct, social responsibility, and promotion of social welfare. Poverty remains a pressing issue in many African countries, and traditional financial systems have for long struggled to effectively address this challenge. Islamic finance offers unique features and mechanisms that can contribute to poverty reduction efforts. This study employs a panel System Generalized Method of Moments (SGMM) estimation technique and explores the empirical evidence on the relationship between Islamic finance development and poverty reduction, while controlling for other variables such as foreign aid, government budgets, and government effectiveness. The findings indicate that Islamic finance development, foreign aid, and government budgets have significant positive effects on poverty reduction, while government effectiveness has a negative effect. Thus, the findings highlight the potential of Islamic finance in poverty reduction in African countries and provide valuable insights for policymakers, practitioners, and researchers in harnessing the benefits of Islamic finance for inclusive and sustainable developmen
