A significant distinction between mainstream and Islamic wealth management is the latter’s planning for zakat, an obligatory charity on the faithful with wealth in excess of needs above a specific threshold. This chapter reviews the concept of zakat, its levying structure, its rules and objectives and the economic impact of its distribution. Furthermore, we consider in brief the evolution of this institutions with its clearly defined principles. There are also challenges: there is no consensus on levying zakat on businesses since individuals could hoard wealth in firms (as do non-dividend paying firms) and most ministries consider it an obligation on individual shareholders, apart from the business. Challenges also exist in the effective distribution to eligible recipients. Without efficient disbursement, the responsibility may continue to burden the zakat-payer as a compulsory duty. Unless the challenges are overcome, the wealth effects of zakat may not achieve the desired objective of poverty-reduction and socio-economic empowerment.
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Alex de Ruyter, Muhammad Irfan Syaebani, Riani Rachmawati, David Bailey and Tonia Warnecke
This chapter explores the labour market experiences of vendors (particularly street vendors), a prominent category of informal worker. Accordingly, the chapter reports on findings of interviews with vendors in the Greater Jakarta region of Indonesia, so as to shed light on the aspects of labour market vulnerability that they face, and hence highlight some lessons for labour law enforcement. The findings of the research provide insights on the issues affecting workers in these sectors and, more importantly, inform policy-makers and practitioners on the effectiveness of regulation to cover informal sector workers in Indonesia and in a wider context.
Sofie Josefina Cabus
This chapter brings together the findings from various sources of academic literature and empirical and statistical evidence in order to answers the question ‘Why do school dropout rates vary (so much) across advanced- and developing countries?’ Answers to this question are sought by using the following sub-questions: (1) What is the definition of school dropout? (2) How big is the problem of school dropout (in advanced and developing countries)? (3) What determines, or ‘triggers’, school dropout? These questions are answered by using post-2010 academic literature on school dropout, published in peer-reviewed journals, and covering both advanced and developing countries. The key findings are summarised as follows. First, close inspection, of definitions stipulated in post-2010 articles, reveals that it is possible to identify explicitly, but also implicitly, three ingredients: (1) a minimum level of education; (2) a relevant age group and (3) those persons who are excluded from calculations. In particular the latter two ingredients can vary (a lot) across studies and official statistics and it does matter for the level of published school dropout rates. Second, although there is large heterogeneity in the level of dropout rates observed across countries, a fairly steady downward sloping trend of the school dropout rate is observed over the past 15 to 25 years for almost all countries over the world. And third, albeit the large set of studies on school dropout determinants, there is still much unknown in the academic literature on the most effective approach for keeping students in school in order to lead them towards a high school diploma. This is mainly because research on the most effective way to tackle early school-leaving was (is) absent.
With the end of European empires and formal decolonization after the Second World War, more than 50 states with new names, borders, and government apparatus appeared on the scene. The state as a European idea did not matter at the time, although it matters a great deal in consideration of the question: Whose comparative law? States may be called nation-states when in actual fact they are centralized states encompassing a variety of nations, all operating under the rule of law. It is time for changes to the paradigms in comparative law studies, that are more inclusive.
Convenience in White-Collar Crime
Whistleblowers attempt to disclose information about what they perceive as illegal, immoral, or illegitimate practices. Fraud investigators reconstruct the past after suspicions of misconduct and financial crime. Whistleblowers are an important source of information for many fraud investigators. In this chapter, characteristics of whistleblowers and their trustworthiness as information sources and the quality of pieces of information are discussed.
Architecture and Urban Competitiveness
Peter K. Kresl and Daniele Ietri
Successful architectural city planning initiatives usually incorporate a set of features such as those we list at the outset of this chapter. Not all cities manage to implement these or other similar features, and their initiative usually comes up short. We examine four such examples in this chapter. In Syracuse, the city leaders lacked the foresight to implement the plan to reconfigure the center of the city. In Detroit, the RenCen was not sufficient, by itself, to revitalize the downtown area, let alone the entire city. The St. Louis Gateway Arch was abandoned by city development that drew activity to the other, western, side of the city. And Rotterdam failed to incorporate into its design the urban life preferences of the residents. In each case, time, resources and opportunities were wasted.
Theory and Practice
Wealth purification is an important aspect of Islamic wealth management. Purification can be in the form of giving that portion of wealth as charity. The best is to ensure that the wealth is earned in lawful means, so purification is not an issue at all. The objective of purification is to comply with God’s commandment to refrain from wrongful means of earning wealth so as to fulfill obligation of a normal person wanting to accumulate permissible wealth. Individuals and corporations are often focused on wealth accumulation, protection and distribution, but are usually short on wealth purification. There is an established practice to give as charity the wrongfully earned wealth to banks, and banks normally set aside such moneys to be paid to charitable purposes.
Theory and Practice
This chapter introduces the reader to a brief description of modern finance ideas as regards wealth management. As at 2016, the total wealth under management as securities is about US$44 trillion managed by some 13,000 management companies. Humanity has accumulated wealth aster in the last century than at any time in history. Most of the wealth – almost three quarters of them - is concentrated in the industrialized countries. How the wealth is managed by advanced IT-based mathematical models is explained in this chapter. None of these methods are excluded if one were to adopt Islamic concept of wealth, which idea leans in ways to make the choices of wealth creation, and management on the basis of moral sentiments of the community in which wealth should be accumulated to benefit the community.
Theory and Practice
Mohamed A. Gadhoum
The secular perspective on wealth has amply been explained in Chapter 1. This chapter is meant to clarify the meaning of wealth from the Islamic (shariah) perspective based on its main sources, the Quran and the Sunnah (Prophet’s sayings-cum-practices). Wealth is earned, accumulated and invested by its owner: contemporary perspective is that wealth is rightfully owned without much thoughts about the community in which it is held. Islam dictates wealth should be earned by permissible means, and should not be invested to harm the community in which the wealth is found. More than that, part of additions to wealth each year from investment returns must be paid as charity while wealth should be optionally be put to promote good deeds to serve the community needs. These differences create challenges to Islamic wealth management and estate planning for those who wish to fall in line with Islam’s injunctions on wealth.
Theory and Practice
Ziyaad Mahomed, Mohamed Ariff and Shamsher Mohamad
Debt issuances traditionally attracts a negative sentiment, so the corporation’s shares decline in prices around the time of the issuances. Sukuk being another form of debt, none the less, structured differently from a conventional bond, should have some effect on the shares when sukuk are issued and traded. We explore this aspect in the chapter only to find that the market appears to generally favour sukuk issues as good news, so the share prices go up. However, during the Global Financial Crisis era, sukuk issuances attracted negative sentiments.