Financial Inclusion and Poverty Alleviation in Muslim-majority Countries: The Role of Islamic Finance and Qard Hassan

2017 ◽  
pp. 141-197 ◽  
Author(s):  
Amin Mohseni-Cheraghlou
Keyword(s):  
Poverty Alleviation ◽  
Financial Inclusion ◽  
Islamic Finance ◽  
Muslim Majority

scholarly journals Role of financial inclusion in poverty alleviation in Odisha

2020 ◽  
Vol 8 ◽  
pp. 1-8
Author(s):  
Narayan Rout ◽  
Keyword(s):  
Poverty Alleviation ◽  
Millennium Development Goals ◽  
Rice Yield ◽  
Financial Inclusion ◽  
Access To Credit ◽  
Development Indicators ◽  
Bank Branches ◽  
Development Goals ◽  
Branch Banking

Objectives: This study dwells on the role of financial inclusion in poverty alleviation. The alleviation of poverty is implemented by combining direct tools and indirect tools. Traditional solutions have not been as effective and sufficient to tackle poverty. Indirect tools include improving access to credit, promoting savings to the poor. Methods/Statistical analysis: We use district level branch banking and development indicators data for 30 districts of Odisha during the discrete period 1992 to 2011, since official poverty data for district levels are not released. Findings: When controlled for PDDP, number of bank branches plays a significant role to reduce poverty. We find that an increase of Rs. 10,000/- in PDDP can cause a fall in poverty by 4%, an increase of 10% in Rice Yield can cause fall in poverty by 1.5%, whereas, an additional 100 number of bank branches can reduce poverty by 4.7% in the districts. Application/Improvements: The results of this analysis could go further to achieve the millennium development goals in few years. Novelty: We find the relative ranking of the coefficients of real sector and finance sector variables, that when controlled for other variables, e.g., Rice Yield, No. of Branches and PDDP to negatively impact poverty rates. Keywords: inclusion; poverty alleviation; banking; NDDP; branches

PERAN MODAL SOSIAL SEBAGAI MEDIATOR LITERASI KEUANGAN DAN INKLUSI KEUANGAN PADA USIA PRODUKTIF DI KABUPATEN GUNUNGKIDUL

2020 ◽  
Vol 15 (1) ◽  
pp. 27
Author(s):  
Elizabeth Fiesta Clara SB ◽  
Astrie Krisnawati
Keyword(s):  
Social Capital ◽  
Financial Literacy ◽  
Poverty Alleviation ◽  
Sampling Technique ◽  
Financial Inclusion ◽  
The Other ◽  
Probability Sampling ◽  
The Relationship ◽  
Determinant Factor

ABSTRACT Financial inclusion is proven to decrease poverty and social gap if it is done maximally. Gunungkidul regency as one of all regency with the poorest population in Daerah Istimewa Yogyakarta. The determinant factor in successful financial inclusion is financial literacy toward the population themselves. Furthermore, the other factor to accelerate poverty alleviation is the role of the productive population.This research aims to discover the role of social capital as the financial literacy and financial inclusion mediator of Gunungkidul’s Regency productive population. With social capital is expected to be a mediator in improving literacy and inclusion finance.The population in this research is 729.364 productive ages of Gunungkidul’s Regency population and the sample was taken by non-probability sampling technique which produced 424 samples. This study adopted Sobel test also Kenny and Baron method to examine the effect of mediaton of social capital in the relationship between financial literasion and financial inclusion. The result of this study found that social capital proved to partially mediate the association beteen financial literacy and financial inclusion of productivity age in Gunungkidul Regency. Keywords: Poverty, Financial Literacy, Financial Inclusion, Social Capital, Partially Mediation, Gunungkidul Regency. ABSTRAK Gunungkidul termasuk Kabupaten dengan jumlah warga miskin Yogyakarta. Inklusi keuangan dipercaya dapat menurukan kemiskinan apabila dilakukan secara maksmial serta dapat mengurangi kesenjangan sosial. Salah satu faktor penentu keberhasilan inklusi keuangan adalah adanya literasi keuangan pada masyarakat itu sendiri, faktor lain yang dapat mempercepat pengentasan kemiskinan adalah peran masyarakat produktif. Penelitian ini bertujuan untuk mengetahui peran modal sosial sebagai mediator literasi keuangan dan inklusi keuangan pada usia produktif di Kabupaten Gunungkidul yang diharapkan dapat meningkatkan literasi keuangan dan inklusi keuangan itu sendiri. Populasi penelitian ini adalah masyarakat Kabupaten Gunungkidul berusia produktif sebesar 729.364 jiwa. Pengambilan sampel dengan teknik non-probability sampling menghasilkan sampel sejumlah 424 jiwa. Penelitian mengadopsi dan menggunakan tes Sobel serta metode Baron dan Kenny dalam pengujian pengaruh mediasi modal sosial pada hubungan literasi keuangan dan inklusi keuangan. Hasil penelitian menemukan bahwa modal sosial terbukti secara parsial memediasi hubungan antara literasi keuangan dan inklusi keuangan pada usia produktif di Kabupaten Gunungkidul. Kata kunci: Usia Produktif, Literasi Keuangan, Inklusi Keuangan, Modal Sosial, Kabupaten Gunungkidul.

Islamic finance and charity in the Muslim world. The role of the Islamic Development Bank in financing aid

2020 ◽  
Vol 5 (2) ◽  
Author(s):  
Altea Pericoli
Keyword(s):  
Poverty Alleviation ◽  
Development Aid ◽  
Sustainable Growth ◽  
Development Cooperation ◽  
Islamic Finance ◽  
Humanitarian Relief ◽  
Development Bank ◽  
Joint Effort ◽  
The Impact

The purpose of this paper is to describe the role of Islamic finance in the charitable sector by analysing how Islamic banks and States manage funds for humanitarian and development aid. The Islamic Development Bank (IsDB) represents one of the main Islamic actors involved in the development cooperation and humanitarian relief and, in partnership with other donors, it  implements programs in its member countries. This research examines the existing literature and data regarding projects financed by the IsDB with the aim to understand the impact of Islamic financial tools on aid. The Lives and Livelihoods Fund (LLF) is an example of a program for poverty alleviation but also a mechanism of blended finance for supporting health, agriculture, and infrastructure projects. Financed by the IsDB, bilateral institutions, and foundations,it uses an innovative financing model aiming to produce sustainable growth in the most vulnerable member countries. It could represent a positive model for financing and implementing aid in a joint effort of Muslim and non-Muslim donors.

scholarly journals THE FORECASTING OF FINANCIAL INCLUSION IN EAST JAVA THROUGH ISLAMIC MICROFINANCE INSTITUTION: AN AUTOREGRESSIVE INTEGRATED MOVING AVERAGE APPROACH

2018 ◽  
Vol 3 (2) ◽  
pp. 38
Author(s):  
Muhammad Anif Afandi ◽  
Indanazulfa Qurrota A'yun
Keyword(s):  
Financial Services ◽  
Poverty Alleviation ◽  
Moving Average ◽  
Financial Inclusion ◽  
Public Access ◽  
Third Party ◽  
System Stability ◽  
Autoregressive Integrated Moving Average ◽  
Microfinance Institution

Financial inclusion is an effort intended to eliminate price and non-price barriers toward public access to formal financial institutions. The aim of that is income equalization of the societies affecting increasing economic growth, poverty alleviation, and financial system stability. East Java is one of the provinces in Indonesia with the most number of Islamic Rural Banks (BPRS). This study wants to find out how the role of BPRS in realizing the acceleration of Islamic financial inclusion in East Java. Then, this research is conducted in the period January 2014 – May 2018 in which data sourced from the Islamic Banking Statistics (SPS), Financial Services Authority (FSA). An Autoregressive Integrated Moving Average (ARIMA) is applied as research method to predict the level of Islamic financial inclusion in East Java through BPRS by using three from four financial inclusion indicators released by Bank Indonesia in 2014 namely access with number of BPRS as its proxy, usage with amount of third party funds and amount of financing as its proxies, and quality with total assets and Non-Performing Financing (NPF) as its proxies. The results show that based on forecasting values until December 2020, the number of BPRS predicted will decrease with the last number as many as 27 banks, DPK will increase with the last number 1,680,558.79 million Rupiah, the amount of financing will increase with the last number as many as 1,822,810.80 million Rupiah, asset will increase with the last number 2,299,250.44 million Rupiah, and NPF will increase with the last number 12.48 percent.Keywords: Financial Inclusion, Islamic Rural Banks, ARIMA, East Java

scholarly journals Impact Of Self Help Groups On Women Empowerment: A Study With Reference To Women Self Help Groups In Aurangabad District

2011 ◽  
Vol 5 (1) ◽  
pp. 21-39
Author(s):  
Aparna Bhonde Saraf
Keyword(s):  
Poverty Alleviation ◽  
Financial Inclusion ◽  
Economic Empowerment ◽  
Women Empowerment ◽  
Self Help ◽  
Self Help Groups ◽  
The Impact ◽  
Social Empowerment ◽  
Positive Results

Microfinance is the most experimented philosophy in today’s era. It has infact become a strategic tool for financial inclusion as well. The quantitative growth of microfinance in India mainly through Self Help Groups (SHG) is quiet evident from various studies and reports. Self Help Groups are emerging as a popular vehicle of microfinance. Substantial majority of these groups are women SHGs. In India of more than 61 lakhs of SHGs formed under the NABARD’s SHG-Bank Linkage programme, almost 83% are women SHGs. They are used largely for poverty alleviation. However, various studies reveal that SHGs can supplement empowerment equally. SHGs are providing financial orientation and benefits to the participants. Obviously, this leads to economic empowerment of the members. In addition the group mechanism is assumed to be useful for social empowerment also. The dynamics of this philosophy is studied recently with some positive results. An attempt is made to understand the impact of SHGs on women empowerment. The study also focuses on examining the role of certain factors (influencers) in affecting empowerment.

Zakat as a Measure of Social Justice in Islamic Finance : An Accountant’s Overview

2013 ◽  
Vol 1 (1) ◽  
pp. 64 ◽  
Author(s):  
Pranam Dhar
Keyword(s):  
Social Justice ◽  
Islamic Finance ◽  
Poverty Eradication ◽  
The Third ◽  
The Family ◽  
Additional Amount ◽  
Important Form

Zakat is an important form of religiously mandated charity under Islam. It is the third pillar of Islam. The giving of Zakat is important for Muslims, as this leads to purification of their wealth from all sins. This paper examines the role of Zakat as an instrument of social justice and poverty eradication in society. Each Muslim calculates his or her own Zakat individually. Generally, this involves the payment each year of two and a half percent of one's capital, after the needs of the family have been met. One can donate additional amount as an act of voluntary charity but Zakat is fundamental to every Muslim. Zakat is the Islamic contribution to social justice: those who have to give charity share the benefit of their prosperity to those who have fallen short. This is the Islamic approach to remove greed and envy and to purify one's soul based on good intentions. This is the institution of Zakat in Islam. The institution of Zakat serves to eradicate poverty in the community and uphold the light of Islam. Allah says “whatever is paid as Zakat for the sake of Allah shall be rewarded in manifolds”.

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