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DEVELOPING AN ISLAMIC BOSNIAN DIASPORA MUTUAL FUND: ISLAMIC FINANCE, DIASPORA PHILANTHROPY AND THE ECONOMIC DEVELOPMENT OF BOSNIA AND HERZEGOVINA
European Journal of Islamic Finance
View Archive Info| Field | Value | |
| Title |
DEVELOPING AN ISLAMIC BOSNIAN DIASPORA MUTUAL FUND: ISLAMIC FINANCE, DIASPORA PHILANTHROPY AND THE ECONOMIC DEVELOPMENT OF BOSNIA AND HERZEGOVINA
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| Creator |
Trokic, Amela
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| Subject |
Islamic Mutual Fund, Remittances, Diaspora Philanthropy, Economic Development, Youth Brain Drain
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| Description |
This paper analyzes the potential of Diaspora philanthropy in an Islamic economic context specific to the development of Bosnia and Herzegovina. The Bosnian War in the late 1990s created a large Bosnian Diaspora population that resulted in significant increases in the country’s remittance inflows, which continue to account for a large percentage of Bosnia’s GDP. While some financial remittances are invested, most are used towards consumption and contribute very little to the country’s economic development, oftentimes leading to negative long-term effects including a significant youth brain drain. However, Islamic finance presents a potential revolution in the role remittances, as a form of Diaspora Philanthropy, play in economic development and poverty eradication within Bosnia. Namely through the creation of an Islamic Bosnian Diaspora Mutual Fund which pools remittances in the form of investments. The aim would be to primarily mobilize remittances, which individually have very little economic potential, and invest them in Shari’ah compliant instruments and endeavors in Bosnia. Return on investments could then be pooled into philanthropic funds which would be used towards supporting small and medium business growth and combat issues related to unemployment. Thus, this paper discusses the potential of Islamic finance in organizing and revolutionizing Diaspora efforts (financial remittances) in detail. It presents a case for Islamic finance and its role in effectively strengthening Diaspora philanthropy in order to contribute to the economic development of Bosnia and Herzegovina while presenting a potential model for the Mutual Fund.
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| Publisher |
European Journal of Islamic Finance
European Journal of Islamic Finance |
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| Contributor |
—
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| Date |
2016-07-23
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://www.ojs.unito.it/index.php/EJIF/article/view/1604
10.13135/2421-2172/1604 http://www.ojs.unito.it/index.php/EJIF/article/download/1604/1609 |
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| Source |
European Journal of Islamic Finance; No 5 (2016): EJIF - European Journal of Islamic Finance, 5, 2016
European Journal of Islamic Finance; No 5 (2016): EJIF - European Journal of Islamic Finance, 5, 2016 |
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| Language |
eng
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| Relation |
http://www.ojs.unito.it/index.php/EJIF/article/view/1604/1609
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| Rights |
Copyright (c) 2016 European Journal of Islamic Finance
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