Abstract: In this study, one of the tools of Islamic financing
known as “Sukuk” a non-interest bearing investment which has
started to be implemented in Turkey and the world as a whole is
discussed. In order to increase the vitality and efficiency of the
economy, by taking lessons from the recent economic crisis new
developments in the banking and investment sector are being
expanded. The purpose of all investors is to obtain more revenue
through the use of capital. The inability of traditional investment
tools to meet the expectations of investors and the interest based
financial system where one investor benefits at the expense of
another there has been the need for a different, reliable and noninterest
bearing financial market that is consistent with the Islamic
rule. As a result an alternative and more reliable interest free
financing tool “Sukuk” rental certificates covering people who are
sensitive to Islamic rules, appeal to all segments, hidden remaining
capital that contributes to the economy, reduce disparities in income
distribution, common risk sharing system of profit and loss sharing
has emerged. Today, for the structural countries by examining the
state of the world market economy the applicability, enactment and
future issues associated with this attractive kind of Islamic finance
namely the “Sukuk” market has been explained.
Abstract: In this study, firstly democratic thoughts which
directly or indirectly affect economic development and/or the
interaction between authoritarian regimes and the economic
development and the direction and channels of this interaction were
studied and then the study tried to determine how democracy affects
economic development. It was concluded that the positive
contributions of democracy to economic development were more
determinant than the effects that were either negative or restrictive in
terms of development. When compared to autocracy, since
democracy is more successful in managing social conflicts, ensuring
political stability and preventing social disasters such as famine, it
contributes more to economic development. Democracy also
facilitates delegation of authority, provides a stable investment
environment and accelerates mobilization of resources in accordance
with economic growth/development. Democracy leads to an increase
in human capital accumulation and increases the growth rate through
reducing income inequality. It can be said that democratic regimes
are the most appropriate ones in terms of increasing economic
performance and supporting economic development through their
strong institutional structures and the assurance they will ensure in
property rights.
Abstract: This paper examines how “Zakat” provides fair
income redistribution and aids the struggle against poverty. Providing
fair income redistribution and combating poverty constitutes some of
the fundamental tasks performed by countries all over the world.
Each country seeks a solution for these problems according to their
political, economic and administrative styles through applying
various economic and financial policies. The same situation can be
handled via “zakat” association in Islam. Nowadays, we observe
different versions of “zakat” in developed countries. Applications
such as negative income tax denote merely a different form of
“zakat” that is being applied almost in the same way but under
changed names. However, the minimum values to donate under zakat
(e.g. 85 gr. gold and 40 animals) get altered and various amounts are
put into practice. It might be named as negative income tax instead of
zakat, nonetheless, these applications are based on the Holy Koran
and the hadith released 1400 years ago. Besides, considering the
savage and slavery in the world at those times, we might easily
recognize the true value of the zakat being applied for the first time
then in the Islamic system. Through zakat, governments are able to
transfer incomes to the poor as a means of enabling them achieve the
minimum standard of living required. With regards to who benefits
from the Zakat, an objective and fair criteria was used to determine
who benefits from the zakat contrary to the notion that it was based
on peoples’ own choices. Since the zakat is obligatory, the transfers
do not get forwarded directly but via the government and get
distributed, which requires vast governmental organizations. Through
the application of Zakat, reduced levels of poverty can be achieved
and also ensure the fair income redistribution.