Paper short abstract

The central argument of this paper focuses a number of social risks, beyond the traditional financial and market risk such as legitimacy, credibility, trust and sustainability risks indicating the potential difficulties of sustainability of Islamic finance in its authentic paradigmatic nature

Paper long abstract

This paper aims at examining the consequences of the observed convergence of Islamic finance with conventional finance, as through such convergence each of the professed features of Islamic finance has been compromised. Therefore, the central argument of this paper is that due to the nature and principles of Islamic finance, the observed convergence creates a number of social risks, beyond the traditional financial and market risk, including legitimacy risk, credibility risk, trust risk and sustainability risk indicating the potential difficulties of sustainability of Islamic finance in its authentic paradigmatic nature.

In evidencing the stated emergent social risks categories, this study aims to test the presence and articulation of IME in the case of Islamic banking and finance by exploring social risks - beyond financial and market risks - articulated through substantive morality of Islam. In addition, considering increasing convergence from Islamic finance to conventional finance, this paper aims to examine and explore the role of financialisation in this convergence. Thus, this paper tests the central principles of IME, namely embeddedness to investigate whether Islamic finance is embedded in real economy and non-economic factors, such as the cultural and religious values and norms; and whether Islamic banking and finance is based on real economy away from fictitious commodities and de-commodification. Thus, in evaluating the socio-economic performance of IBF, this paper locates IBF as an operational function of IME to implement the various features of Islamic substantive morality into their operational strategy for producing and enhancing sustainable development, economic stability and overall welfare.

Paper short abstract

This research focuses on the political economy of national ownership in situations of aid dependence, with particular reference to the case of the reconstruction of the healthcare system in Timor-Leste.

Paper long abstract

The study demonstrates that, in a range of areas, the Timor-Leste government was able to exercise some autonomous decision-making even though it was heavily aid dependent. The study distinguishes between patronage-based, populist and rationalist approaches to policy making, and argues that generally in the period 2002-2007, the Timorese government used a patronage-based strategy that allocates large proportions of donor funds in favour of elite political networks, increasing corruption. However, the situation was different in the field of healthcare. Creation of a “modern” healthcare system that would benefit future Timorese generations was central to the ruling party, Fretilin’s, ideology and consequently healthcare became subject to populist rather than patronage-based politics. This was demonstrated particularly in the deal for assistance and capacity building from the Cuban government. The deal was based upon socialist principles advocated by veterans groups in Timor. However, this approach alienated health professionals in Timor, who advocated for a liberal approach to the reconstruction of healthcare, but who lacked the political capital necessary to win the debate.

Paper short abstract

The successes and achievements of community mobilization and high impact projects in the fields of energy, irrigation and technical trainings: a case study of SRSP, Pakistan. Co-author: Masood Ul Mulk

Paper long abstract

Poverty reduction initiatives in the form of Rural Support Programmes (RSPs) has reached over 43 million people (out of 140 million population) in Pakistan. Implemented by local NGOs, these RSPs espouse a common approach to rural development, that is social mobilization. By harnessing people’s potential through fostering and strengthening participatory, transparent and accountable organizations, local people work towards poverty alleviation and improving their quality of life.

This paper examines the Sarhad Rural Support Program (SRSP), established in 1989, and operating in the Khyber Pakhtunkhwa (KP) province of Pakistan. Among the 26 million people living in the KP, SRSP focuses on 11 million of the poorest. SRSP has so far reached 3.5 million poor and has been instrumental in community organization formation, local support organizations, training and capacity building, along with community infrastructure development and microfinance activities.

Evidence of the successes and achievements of SRSP, through the practitioner’s experience, shows that social mobilization projects have empowered local communities to take ownership of the issues, and develop capacity beyond the community level. Furthermore, the formation of networks between villages has created a very positive impact for local politics, biodiversity conservation, conflict resolution and social services. This has led to communities in many areas taking the lead in managing local resources and social services, such as schools, communal lands and irrigation facilities, as well as individuals representing their communities in local elections.

SRSP with popularity among communities and donors, has also implemented low cost, sustainable and community owned projects with government as well, which has resulted that Government to adopt RSPs approach in future.