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Islamic Finance, in the Age of Black Swans and Complexities, for a Multipolar World

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Book cover Developments in Islamic Finance

Part of the book series: Palgrave CIBFR Studies in Islamic Finance ((PCSIF))

Abstract

The recent financial developments have given rise to a developing consensus that the unipolar economic growth regime dominated by USA, Japan, and few European centers is under great stress. The consensus takes into consideration the present financial complexities, stresses, and strains, and the ensuing uncertainty surrounding the sustainability of the unipolar regime, which has given way to a shift toward a multipolar economic setup. Scholarship has already hinted on not only better trade and investment opportunities, but also on a much more resilient global economic growth that such a shift can bring. However, there are some major obstacles that need to be overcome in order to reap fully the desired benefits of multipolarity. Continuation of debt-based financing regime (the hallmarks of which are risk transfer and risk shifting) will not necessarily allow the benefits of emerging multipolarity to accrue to the world economy. The new system can be more effective with a new regime of financing. Indications are that almost all emerging countries in Asia are actively considering risk sharing via Islamic finance as a possible alternative.

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Author information

Authors and Affiliations

  1. College of Banking and Financial Studies, Muscat, Oman

    Mughees Shaukat

  2. INCEIF the Global University of Islamic Finance, Kuala Lumpur, Malaysia

    Abbas Mirakhor

Authors
  1. Mughees Shaukat
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  2. Abbas Mirakhor
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Correspondence to Mughees Shaukat .

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Editors and Affiliations

  1. Lahore University of Management Sciences (LUMS), Lahore, Pakistan

    Syed Aun R. Rizvi

  2. Institute of Business Administration, Karachi, Pakistan

    Irum Saba

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Shaukat, M., Mirakhor, A. (2017). Islamic Finance, in the Age of Black Swans and Complexities, for a Multipolar World. In: Rizvi, S., Saba, I. (eds) Developments in Islamic Finance. Palgrave CIBFR Studies in Islamic Finance. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-59342-5_7

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  • DOI: https://doi.org/10.1007/978-3-319-59342-5_7

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  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-319-59341-8

  • Online ISBN: 978-3-319-59342-5

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

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