Tuesday, June 3, 2014

Epilogue to the article about economic development of Islamic countries (23)

Then, the author continues:
“Today, there is no compulsion, but rather competition between lenders to offer attractive rates.”
Author writes that, as if Islamic tax regimes may negatively effect resource allocation, productivity and innovation.
Author writes as if:
“Conflict between secular and sharia law may contribute to an ineffective rule of law, a lack of trust in judicial institutions, moral hazard in judiciary, limitation on property rights and contract law, all of which have negative economic consequences.
Religious constraints on the freedom of speech and on the power of the legislature, may impinge on democratic rights, institutions, political freedom and the ability to expose and eradicate corruption, again with negative economic impacts.

These can generally be described as factors leading to a lack of motivation.”

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