The Impact of Islamic Finance on Economic Development: A Roundtable Discussion

The Islamic Finance Project and Islamic Legal Studies Program of Harvard Law School organized a panel discussion in Austin Hall on October 12, 2010 entitled. The Impact of Islamic Finance on Economic Development”. The overarching goal of the seminar was to promote a more critical and informed discussion on a topic of growing scrutiny and relevance in recent years. Growing socioeconomic challenges, such as overpopulation and income inequality, threaten to undermine current development efforts and push developing countries, particularly in the Middle East, further behind in their state-building goals. With many losing faith in the efficacy of the conventional financial system, particularly after the recent global economic crisis, the potential role of Islamic Finance in providing a complementary or alternative framework for development efforts has been suggested. The seminar provided a forum to further explore the plausibility and desirability of such a role for Islamic Finance. The seminar featured a distinguished panel of practitioners from the Islamic Development Bank and academic from Tufts University who provided their insights on the topic, allowing for an appreciation of both the theoretical and functional aspects of the field. Together, the panelists and audience engaged in a rich discussion on the de jure and de facto role of Islamic Finance on economic development.