An Integral Approach to Development Economics: Islamic Finance in an African Context

282 Pages·2014·2.91 MB·English

by  Basheer A. Oshodi

An Integral Approach to
Development Economics
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Alexander Schieffer, University of St. Gallen, Switzerland
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Ronnie Lessem, Paul Chidara Muchineripi and Steve Kada
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Remaking Ourselves, Enterprise and Society:
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An Integral Approach
to Development
Economics
Islamic Finance in an African Context
BAshEEr A. OshODI
© Basheer A. Oshodi 2014
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system or transmitted in any form or by any means, electronic, mechanical, photocopying,
recording or otherwise without the prior permission of the publisher.
Basheer A. Oshodi has asserted his right under the Copyright, Designs and Patents Act, 1988,
to be identified as the author of this work.
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ISBN 9781472411259 (hbk)
ISBN 9781472411266 (ebk – PDF)
ISBN 9781472411273 (ebk – ePUB)
V
Contents
List of Figures ix
List of Tables xi
About the Author xiii
Foreword xvii
Preface: Development Economics xix
List of Abbreviations xxv
Chapter 1 Introduction 1
The Story I Am 1
EUREKA 1
My Personal GENE 7
GENE in Research 7
My GENE: A Practical Reflection of the Integral GENE 10
Burning Issues 18
Conclusion 18
Chapter 2 Economic Development in Nigeria 21
Introduction 21
The Narrative of the Current Economic Context 22
Integral Development Economics 32
Good Governance 35
The Good Enough Governance Agenda 42
Development Indicators in Nigeria 43
The BECANS Model 46
Poverty in Nigeria 49
Unemployment in Nigeria 52
Conclusion 54
vi An IntegrAl ApproAch to Development economIcs
Chapter 3 The African Socio-economic World 55
Introduction 55
The Economic Theory of Ibn Khaldun 56
The Pre-colonial Political History of Nigeria 60
The Indigenous Informal African Financial System 63
The African Triple Socio-economic Heritage 67
Economic Development in Africa 73
Conclusion 76
Chapter 4 Moral Economics 79
Introduction 79
The Moral Economic Core 80
Jewish Moral Economic Theory 81
The Buddhist Moral Economic System 85
Aristotle’s Moral Economic Masterworks 89
Biblical Moral Economics 92
The Foundation of the Islamic Moral Economic System 96
Conclusion 106
Chapter 5 Economic Thinking Leading to an African Context 109
Introduction 109
Modernization Theories 110
Dependency Theories 120
World Systems Theories 127
Drawing from Twenty-first-century Economic Theories 131
Conclusion 146
Chapter 6 Islamic Economics and Finance 149
Introduction 149
Neo-classical Islamic Economic Thoughts 150
Islam and Business Ethics 157
Islamic Financial Instruments and Contracts 159
Islamic Banking Assessment 169
The Framework for Non-interest Banks in Nigeria 173
The Emerging Value Proposition for Islamic Financial
Institutions in Nigeria 183
Solving the Poverty Challenge with Islamic Finance 187
Conclusion 193
contents vii
Chapter 7 New Integral Economic Models 195
Introduction 195
Theory from the Co-operative Inquiry 196
Developing the African Economic Theory 197
The Integral African Development Economic Model 199
Theory-to-action 201
The Integral Economic Development Model as Applied 206
The Centre for Integral Social and Economic Research 208
The Path to Socio-economic Transformation in
Nigeria and Africa 210
Conclusion 221
Glossary of Islamic and African Banking Terms 223
Bibliography 225
Index 243
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List of Figures
1.1 Overall framework 6
1.2 My creative GENE within the integral GENE 9
2.1 Poverty in Ijegun Egba Lagos, Nigeria 28
2.2 Poverty in Ijegun Egba Lagos, Nigeria 29
2.3 The Nigerian socio-political and economic structure 34
2.4 Nigeria’s 50-year GDP–GNI relationship 46
3.1 The Nigerian Triple Moral Economic Heritage Model 72
3.2 Redefining poverty in Africa 75
4.1 The moral economic core 81
4.2 The five basic axioms of Jewish economic theory 83
4.3 The Four Noble Truths in Buddhism 86
4.4 The principles and philosophy of Islamic banking 104
5.1 How individual spiritual capital accrues to institutions 141
6.1 The unfolding value proposition among Islamic banks in Nigeria 184
6.2 A real estate ijarah sukuk 190
7.1 The Islamic finance model from the co-operative inquiry 197
7.2 Movement of the research body 198
7.3 The Integral African Development Economic Model 200
7.4 Integral dynamic GENEalogy 202
7.5 The Integral African Development Economic Model:
Establishing Islamic Finance in Nigeria 206
7.6 Generic Integral Development Economics Model 207
7.7 CISER’s objectives 209
7.8 Integrating EUREKA with CISER Nigeria 211
7.9 The Integral Research, Integral Education and Integral
Development Compass 213