The aim of this study is to analyze the sustainability of Islamic microfinancing for developing micro-enterprises (MEs). We use the example of Baitul Mal Wat Tamwil (BMT), an Islamic microfinance institution in Indonesia. Two approaches will be used to explore sustainability: data envelopment analysis (DEA) and level of outreach. Firstly, the results indicate, generally, that the efficiency of BMTs is relatively low.
The provision of microfinance is a high-cost operation because of its target clients. They are in need, not only of financing, but of education, training, and direct guidance for preparing their first investment plans/steps, health care, child care, psychological re-habilitation and immediate provision of essential consumer goods.
This paper attempts to identify the problems of resource utilization of selected Muslim funds of Northern India.
In most developing countries of the world, financing micro-enterprises (microfinancing) is considered a “new paradigm†for bringing about development and alleviating poverty. Bangladesh is one of the biggest
The Microcredit approach has proven to be a versatile, effective and efficient alternative for poverty alleviation. Unfortunately, the cost of running such programs is high. This paper proposes a model that highlights the use of
The Islamic approach to poverty alleviation is mainly done through the redistribution of wealth to fulfill the basic needs of the poorer strata of the society. However, even though this approach has been successful in mitigating absolute poverty, the emphasis of the system is simply the fulfillment of basic needs and not towards the creation of viable financial systems. While the redistribution of wealth can sometimes lead to a system of providing subsidized credit to the poor, there is no viable Islamic compatible system of creating sustainable financial intermediation among the poor.
Poverty alleviation is a much talked-about issue in contemporary politico-economic discourse across the globe. Many NGOs and other types of organizations are striving hard to address this issue but their success story is not as encouraging as one might perceive. Fundamental to their limitation is the basic fact that they are using secular and value-neutral methods to achieve their goals. In recent days Microfinance has emerged as a dominant mechanism for poverty alleviation.
This paper presents a single model integrating “Zakat, Awqaf and Micro-Financing†on Islamic principles and concepts that could work as an Islamic alternative to poverty alleviation. The paper analyzes three separate models of
Standard economics and policy prescriptions adopt the modernization thesis as its base, which says that developing countries can modernize by undergoing secularization and westernization. However,
Corporate social activities have become major subjects because of their effects on the quality of life of citizens, in particular, and on society at large. Currently, there is an increased awareness of social responsibility due to the challenges faced by financial institutions (particularly Islamic banking) globally. This paper examines the influence of characteristics of the board of directors, that is, board size, board composition, and the separation of the roles of chief executive officer (CEO) and chairman, on corporate social responsibility (CSR) disclosure.