Abstract
The Eighth Harvard University Forum on Islamic Finance, held in
April 2008, with its blend of academic scholarship and business
experience, was a unique venue for critical and objective examination
of Islamic finance. Lawyers, regulators, academics, and practitioners
alike analyzed the legal and regulatory challenges faced by the industry
and discussed new developments in the field. The papers were selected
from a pool of submissions based on the evaluations of the Forum’s
reviewers. More than forty papers and speeches were chosen for the
Forum, including those presented at the pre-Forum workshop on
microfinance. Each reflects on some of the key issues that affect the
relationship between Islamic finance and the mainstream financial
community, particularly the balance between innovation and
authenticity.
This Forum occurred at a major junction in the history of Islamic
finance. As the industry grows in popularity and breadth, the
importance of analyzing what shari‘a-compliant Islamic finance truly
is has become a contentious issue for many in the industry. For that
reason, we chose to focus the Forum’s discussion around the themes of
innovation and authenticity. This analysis addressed questions such as:
How can we learn from modern economics and finance, while
remaining true to an Islamic ethical core? Can we modernize Islamic
banking? What are the limits of innovation in Islamic finance?
For the first time, the Forum hosted a Nobel Laureate to deliver
the keynote address. Robert Merton, the recipient of the 1997 Nobel
Prize in Economic Sciences, identified important areas for economic
development and for the efficient management of risk. He commented
on the potential of utilizing available conventional market innovations
in accordance with shari‘a standards and challenged the Islamic
finance industry to further probe shari‘a-compliant derivatives for risk-
mitigating strategies. When reading his paper in the volume, one should
keep in mind that it was delivered before the global financial crisis
April 2008, with its blend of academic scholarship and business
experience, was a unique venue for critical and objective examination
of Islamic finance. Lawyers, regulators, academics, and practitioners
alike analyzed the legal and regulatory challenges faced by the industry
and discussed new developments in the field. The papers were selected
from a pool of submissions based on the evaluations of the Forum’s
reviewers. More than forty papers and speeches were chosen for the
Forum, including those presented at the pre-Forum workshop on
microfinance. Each reflects on some of the key issues that affect the
relationship between Islamic finance and the mainstream financial
community, particularly the balance between innovation and
authenticity.
This Forum occurred at a major junction in the history of Islamic
finance. As the industry grows in popularity and breadth, the
importance of analyzing what shari‘a-compliant Islamic finance truly
is has become a contentious issue for many in the industry. For that
reason, we chose to focus the Forum’s discussion around the themes of
innovation and authenticity. This analysis addressed questions such as:
How can we learn from modern economics and finance, while
remaining true to an Islamic ethical core? Can we modernize Islamic
banking? What are the limits of innovation in Islamic finance?
For the first time, the Forum hosted a Nobel Laureate to deliver
the keynote address. Robert Merton, the recipient of the 1997 Nobel
Prize in Economic Sciences, identified important areas for economic
development and for the efficient management of risk. He commented
on the potential of utilizing available conventional market innovations
in accordance with shari‘a standards and challenged the Islamic
finance industry to further probe shari‘a-compliant derivatives for risk-
mitigating strategies. When reading his paper in the volume, one should
keep in mind that it was delivered before the global financial crisis
| Original language | English |
|---|---|
| Publication status | Published - 2010 |
| Externally published | Yes |