Abstract
Abstract. The paper studies the deficiency of the neo liberal policy agenda that aims totransform non-governmental organization (NGOs) engaged in poverty alleviationinto formal financial institutions seeking access to capital market and performingon a commercial basis. It propounds that poverty focused credit programs aimedat distributive equity are logically inconsistent with an ethically neutral liberal marketorder. In comparison, it is inferred in the paper that Islamic economic principles affirm the logical consistency and adequacy to reality of Islamicfinancial program and poverty focused credit programs. These programs, as indicated by the welfare banking ofIslamic Banks in Bangladesh, seek access to financialmarkets, which are characterized by the presence of Shariah instrument prohibiting interest and profiteering and promoting charity.
Keywords. Micro finance, Micro business, Economic development.
JEL. G21, N80, Q12.
References
Akhtar, M.R. (1998). An Islamic Plan of Financing Micro Enterprise Development, proceedings of International Workshop on Micro Enterprise Development Financing. Chittagong, Bangladesh, 1-11
Alamgir, D.A. (1998). Diversity in implementation mechanism of micro credit program of micro finance institution. Proceedings of International Workshop on Micro Enterprise Development Financing, Chittagong, 2-28
Arrow, K.J. (1963). Social Choice & Individual Values, John Wiley & Sons, U.S.A.
Bashir, A.N., & Darrat, A.F. (1991). Equity Participation Contracts and Investment: Some Theoretical & Empirical Result’s, The American Journal of Islamic Social Science, 9(2), 219-31.
Bangladesh Bank. Various issues. Scheduled Bank Statistics. Dhaka. Government of Bangladesh.
Chowdhury, M.A. (1991). Social Choice in an Islamic Economic Framework, The American Journal of Islamic Social Studies, 8(2), 262-270.
Chowdhury, A.M. (1998). Islami Arthanitir Ruprekha, Chittagong, Bangladesh.
Chowdhury, M.A. (1998). Nature of Microenterprise development financing questions, proceedings of International Workshop on Micro Enterprise Development Financing, Chittagong. 21-2.
Galbraith, J.K. (1958). The Affluent Society, Hamilton, U.K.
Greeley, M. (1997). Poverty and Wellbeing Problems for Poverty Reduction in Role of Credit, in Sharif. I & Wood, G (ed) Who Needs Credit, UPL, Dhaka, Bangladesh.
Hashemi, S.M., & Morshed. L (1997). Grarmeen Bank A Case Study, in Sharif I & Wood, G (ed) Who Needs Credit, UPL, Dhaka. 218.
IBBL, (2001). Monthly Position of RDS, April, Dhaka, Bangladesh.
IBBL, (2001). Summary, October. Dhaka, Bangladesh.
IBBL, (2000). Monthly Statement, January, Chittagong.
DBH Finance Corporation, (2000). Prospectus, September, Dhaka, Bangladesh.
Loqman, M., & Ather, S.M. (1997). Problemsand Prospects of Financing Rural Micro Enterprise Projects under Islamic Shariah: Bangladesh Perspective, proceedings of International Workshop on Micro Enterprise Development Financing, Chittagong 1 - 3.
Myrdal, G. (1965). ThePolitical Element in the Development of Economic Theory, London, 30- 49.
Rutherford, M. (1996). The old and the new institution. Journal of Economic Issues, 8(1), 447-448. doi. 10.1017/S105383720000300X
Qaderi, F.K.(2001). Banking, in MonthlyBanker, by Rahman. M. Ara, February. Dhaka, Bangladesh.
Samuelson, P.A. (1973). Economics. Mcgraw Hill, N.Y. USA. 574-6.
Sarkar, A.A. (1998). The Recent! Initiative Taken by the Islamic Banks in Bangladesh in Micro Enterprise Development and How to Relate it to Mosque Based Development Initiative, proceedings of International Workshop on Micro Enterprise Development Financing, Chittagong, 2-14.
Sharif, l. (1997). Poverty Finance in Bangladesh: A New policy Agenda, in Sharif. I & Wood, G (ed) Who Needs Credit, UPL, Dhaka. 70-74.
Schmidt, R.H., & Zeitinger, C.F (1996). Using credit granting NGOs: Where are we now and where do we want to go from here, in Sharif I & Wood, G (ed) Who Needs Credit, UPL, Dhaka, Bangladesh.
Yunus, M. (1998). The Grameen Bank, Scientific American, 118.
Weiss, L. (1965). Case Studies in American Industry, John Wiley & Sons, USA. 137.
Wood, G., & Sharif, I. (1997) Introduction, in Sharif. I & Wood, G (ed) Who Needs Credit, UPL, Dhaka, Bangladesh.
