Food Security, Affordable Housing, and Poverty: An Islamic Finance Perspective

Description

This book is the product of an attempt to look differently at the issue of poverty, along with food security and affordable housing. There is a tendency in conventional economics and finance literature to be apologetic when dealing with globally prevailing and unfair economic and financial systems. Islamic economics and finance academia is not immune from this tendency. The book aims to raise awareness about the root causes and suggests novel proposals that will lead to sustainable solutions. It is based on the understanding that if we continue doing more of the same things, we cannot expect to produce different results.  This book is also premised on the understanding that the financial sector can promote economic progress only if it channels capital to the most productive use while avoiding moral hazard and adverse selection. The issue of collateral taking promotes a situation where financial institutions prefer to lend only too big-to-fail structures for shelter and food sectors that fuel poverty and inequality. This adverse selection ultimately gives rise to food security and affordable housing issues. This indicates that financial liberalization is not the solution to dealing with poverty and inequality. Instead, strong policy initiatives and financial regulations to direct capital to provide long-term sustainability are needed. Preface Contents List of Figures List of Tables 1 Affordable Housing and Poverty The Role of Price Formation and Land Use Policy The Role of Zakat Zakat from Company Shareholding The Role of Waqf State Housing Development Projects References 2 Islamic Mortgages and Securitization The Issue of Resource Mobilization and Securitization Bai Al-Inah Bai Al-Dayn (Islamic Discounting/Factoring) Organized Tawarruq: Commodity Murabaha Islamic Mortgages and Lending Murabaha as Practiced by Islamic Banks for House Financing Ijara as Practiced by Islamic Banks House Financing Islamic Resource Mobilization Ethis Crowdfunding, Indonesia Islamic Rent-Supporter Lottery System, Turkey The Next Level Housing Program The Role of Community Waqf in Real Estate Development References 3 Food Security and Poverty SDGs and Food Security Fi’sabilillah Spending Zakat for Poverty Alleviation and Food Security Economic Empowerment Programs The Issue of Agricultural Prices Post-Harvest Losses and the Role of Warehousing International Trade of Agricultural Commodities References 4 Financing the Trade of Agricultural Commodities Islamic Trade Finance Contracts and Risk for Financiers Risk in Asset-Based Islamic Trade Finance Contracts Risk in Asset-Backed Islamic Trade Finance Contracts Margin Call Murabaha Sale: Asset-Based or Asset-Backed Commodity Price Risk Management Security Margin Calculation and Margin Call Islamic Future Contract and Liquidity Management Shari’ah Non-compliant Products on the Stage Shari’ah Compliant Alternatives from the Grassroots References 5 Financing the Production of Agricultural Commodities Cotton Cooperative and Financing What is Structured Trade Finance Financing Based on Warehouse Receipt Financing Based on Export Receivable Financing Facility Structure Financier’s Security Structure Schedule of Implementation and Security Package Collateral Management Assessment of the Structure Annex-I Export Cash Flow Annex-II Salam Price Calculation References 6 Enabling Infrastructure Definition and Categorization of Infrastructure Sustainability Parameters Business Model for Service Delivery Contracts for Asset Development Resource Mobilization to Scale-up References 7 The Role of the State Hisbah Infrastructure: Output, Outcome, and Services Determinants of Success References Index