| Author(s) | Adam B. Elhiraika |
| Affiliation | College of Business and Economics UAE University, P.G. Boix 17555, Al-A in, UAE e-mail alhiraika@ uaeu.ac.ae |
| Title | The 1997-98 East Asian Financial Crisis: An Islamic Perspective |
| Source | Journal of King Saud University. Administrative Sciences. Volume 14, No 1. (2002/1422) |
| Abstract | This paper examines the causes and policy implications of the 1997-98 financial crisis in East Asia from Islamic perspectives. The paper suggests that the crisis may be better understood as consequences of internal contradictions in the interest-based financial system as regards risk and return sharing between financiers and entrepreneurs. The analysis challenges orthodox policy prescriptions and concludes that the Islamic principle of partnership in finance, which calls for profit and loss sharing and emphasizes the need for project finance, seems to provide the ingredients for the long-sought solutions. |
