Islamic Economics
Dec. 19th, 2015 06:06 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
birguslatroKapital Boost is a Shariah compliant crowdfunding platform for small businesses in Southeast Asia. And apart from the Islamic economics twist, it could be any new startup's website, and it looks pretty solid from the outside.
Anyway, it's got me wondering if there's any real difference to an economy practicing the no-interest Shariah approach and one practicing the loans with interest approach. The end results when things go right seem the same, in that those needing funds for something get the something and the investor ends up with more dosh than they started with.
Does it have a different effect on inflation, for instance? I can't see how it could have, but then I'm not an economist.
(I realise there's more to Shariah than just no interest, such as excessive risk shouldn't be engaged in. (Which would kinda kill the funding options for a high percentage of startups, I suspect.))
Anyway, it's got me wondering if there's any real difference to an economy practicing the no-interest Shariah approach and one practicing the loans with interest approach. The end results when things go right seem the same, in that those needing funds for something get the something and the investor ends up with more dosh than they started with.
Does it have a different effect on inflation, for instance? I can't see how it could have, but then I'm not an economist.
(I realise there's more to Shariah than just no interest, such as excessive risk shouldn't be engaged in. (Which would kinda kill the funding options for a high percentage of startups, I suspect.))