Islamic Finance

The fact that information is valuable is not a surprise to a layperson, yet economists outside the realm of new institutional economics (NIE) would be amazed by this fact (Stigler 1961). This is because information in neoclassical economics is assumed to be perfect and costless, and such an assumption is a foundation stone for much economic theory, including the efficient market hypothesis. Refuting the costless information assumption renders many neoclassical economic interpretations of reality irrelevant and naive (Furubotn and Richter 2005).

The London School of Economics and Political Science (LSE) jointly convened an inaugural public lecture with the Islamic Finance Project of the Islamic Legal Studies Program at Harvard Law School. The public lecture hosted introductory lectures surrounding the concept of Islamic finance and the growth and direction of the industry, and marked the first collaboration between the two institutes in hosting such an event.

The Islamic Finance Project of Islamic Legal Studies Program at Harvard Law School held its second annual public lecture on Islamic Finance at the London School of Economics on Thursday, 7 February 2008. The title of the public lecture was: Advancements in Contemporary Islamic Finance: From Practice to Scholarship. The lecture reflected on the current developments and initiatives in Islamic Finance and explained how faith-based form of finance con- tinues to enhance modern finance and law.

The Islamic Finance Project of Islamic Legal Studies Program at Harvard Law School held its third annual public lecture on Islamic finance at the London School of Economics’ Hong Kong Theatre in London on Thursday, 26 February 2009. As with previous years, the event was jointly hosted with the London School of Economics and immediately followed an intensive workshop earlier that day with a select group of Islamic finance’s industry elite.

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.

Although Islamic finance was conceived as a system that includes broader socioeconomic goals outside of profit, it has largely operated within an economic and regulatory environment that has created impediments in the realization of those goals. The intent of the seminar was to thus explore the question: what can be done to create an enabling environment for Islamic finance to not only be commercially successful, but also deliver on its broader objectives?

The Islamic Finance Project organized a panel discussion on November 18, 2009, held at Harvard Law School, entitled “Islamic Finance, Petrodollar Recycling, and Economic Development.” The goal of the discussion was to expand the dialogue on Islamic Finance to include a more critical analysis of its effect on the global economy and how its role may evolve in the future to address modern development issues. To facilitate a holistic discussion, experts from various fields were invited to share their perspectives and cross-comment on the speaker’s report.

This April, the Islamic Finance Project (IFP) of the Islamic Legal Studies Program (ILSP) at Harvard Law School hosted a symposium on “Financing the Poor: Towards an Islamic Microfinance.” The symposium brought together a diverse, international group of speakers from the microfinance and Islamic finance sectors who shared their experiences and offered their opinions on potential collaboration between the two sectors.

A seminar on Legal Careers in Islamic Finance was held at Harvard Law School, Hauser Hall, on February 11, 2006. This seminar was held in response to students who have expressed interest in practicing in the field of Islamic Finance. Its purpose was to discuss legal practices in Islamic Finance. Professor Frank Vogel, the Director of the Islamic Legal Studies Program, chaired the event with his opening remarks. Umar Moghul, an Attorney at Murtha Cullina LLP, gave a brief Introduction to Islamic Finance and Banking.

A seminar on Economic Development and the Muslim World was held at Harvard Law School on October 12, 2004 as an activity of the Islamic Finance Project of the Islamic Legal Studies Program.