Income Equality from an Unexpected Source
Can you identify the area of finance that assumes as a basic principle “the just, fair, and equitable distribution of income and wealth?” If you guessed Islamic finance, you’re right. What's more, global Islamic finance in predominately Muslim countries throughout Africa and Asia now represents $1.9 trillion in assets, according to ImpactAlpha. This treasury was acquired through asset-based financing of tangible assets and communal risk sharing. A new report by the World Bank and Islamic Development Bank Group describes financial institutions in these countries as an “under-tapped resource” for the $3-$5 trillion dollars needed annually to achieve the shared prosperity targeted in the UN’s 2030 SDGs. There are some lessons for Western finance in this economic model.
John Howell, Editorial Director
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