Journal of Economics, Law, and Society

Editorial

Dr. Edib Smolo — Mon, 30 Dec 2024 00:00:00 +0000

We are pleased to present the second issue of the Journal of Economics, Law, and Society (JELS). This issue builds on the foundations laid in our inaugural publication, continuing to explore the critical intersections between economics, law, and societal dynamics. Our aim remains to foster scholarly discourse that bridges diverse disciplines, addressing contemporary challenges with innovative, multidisciplinary approaches.

The second issue features five diverse and thought-provoking articles that contribute to the advancement of knowledge in Islamic finance, economic sustainability, and the historical evolution of financial systems. Each article underscores the journal’s commitment to high-quality research and its role as a platform for intellectual exchange.

Examination of Sukuk Structures in the Turkish Participation Financial System

Burhan Uluyol, Pashtrik Hajraj — Mon, 30 Dec 2024 00:00:00 +0000

Following the trends in the world, especially in the Muslim world, where Islamic banking started to emerge, there was a need for Islamic banking in Turkey as well. Sukuk is one of the services that has recently become more popular in Turkey due to the legal regulations that enable Islamic banks in the country to issue it and be competitive in the market. This paper tries to examine the applied contracts for the issuance of sukuk and recommend some structures by first explaining the path of Islamic finance in Turkey and its services and then sukuk regulations and contracts. We find that murabaha, wakalah, and ijarah are the most popular contractual forms among the five approved financial contracts (ijarah, wakalah, murabahah, mudarabah-musharakah, and istisna’a) by the Capital Market Board of Turkey for the issuance of sukuk. As we can see from the sukuk structures, the debt-based modes of finance used predominantly in sukuk issuance and priced with the same interest-based benchmarks, it seems that the practices of sukuk are far from the ideals of Islamic economic principles. Therefore, the sukuk issuers should, away from over-usage of debt-based sukuk, should move towards more equity-based sukuk.

Surah Al-Qalam and the Tragedy of the Commons

Haris Lloyd — Mon, 30 Dec 2024 00:00:00 +0000

This paper examines Surah Al-Qalam (Chapter of the Pen) from the Qur’an, highlighting its economic and ethical implications through the lens of the ‘Tragedy of the Garden’ narrative (verses 17–32). The paper challenges traditional Tafsir interpretations and draws parallels with Garrett Hardin’s ‘Tragedy of the Commons’. Employing the Qur’anic exegesis method Tafsir-ul-Qur’an bil-Qur’an, the paper derives authentic Islamic principles such as stakeholder inclusion, sustainability, self-restraint, social responsibility, and cooperation over shared resources. The paper additionally explores contemporary applications of the Surah, including environmental conservation, public resource management, and sustainable corporate governance. By integrating modern concepts like game theory and stakeholder theory, the study demonstrates how Qur’anic principles can address current challenges, urging a re-evaluation of classical interpretations to unlock the Qur’an’s potential for advancing Islamic economic thought.

Islamic Finance as a Crisis-Resilient Framework

Halima Alisic, Betul Dinc, Anitë Salihu — Mon, 30 Dec 2024 00:00:00 +0000

The Global financial crisis (GFC) or “the crisis” exposed significant weaknesses within the global financial system, largely stemming from financialization activities. This research paper explores the potential of Islamic finance (IF) principles to prevent financial crises while offering a more stable and equitable financial framework. A qualitative approach was adopted, involving interviews with various professionals in the IF field to explore the ethical and practical distinctions between conventional finance and IF. Key findings reveal the resilience of Islamic banks during the crisis can be attributed to their adherence to Shari’ah principles, which prohibit interest (riba), excessive uncertainty (gharar), and speculative activities (maysir). The study emphasizes the advantages of asset-backed financing and profit-sharing models, which align financial activities with the real economy, thereby fostering long-term stability. By highlighting the practical benefits of the ethical framework underpinning IF, this research contributes to the broader discourse on financial crisis prevention.

Adapting to Change:

Edin Kadric — Mon, 30 Dec 2024 00:00:00 +0000

This article examines the establishment of modern financial institutions among Bosnian Muslims during the Austro-Hungarian occupation of Bosnia and Herzegovina (1878–1918). It explores how traditional Islamic financial practices were challenged and reshaped under the pressures of modern European administrative and economic systems introduced by the Austro-Hungarian authorities. Key areas of focus include the establishment of new banking institutions and the adaptation of local communities to emerging economic paradigms. By analyzing historical documents, economic policies, and cultural responses, the article sheds light on the intersection of faith, tradition, and modernity during a period of significant socio-economic transition. It argues that Bosnian Muslims navigated these changes through a combination of resistance, negotiation, and innovation, ultimately leaving a lasting imprint on the financial landscape of the country.

Harmonizing Economic Growth with Environmental Justice

Dr. Hazik Mohamed — Mon, 30 Dec 2024 00:00:00 +0000

The global challenge of harmonizing economic growth with environmental sustainability has become a critical issue, particularly within the manufacturing sector. This paper explores the potential of circular economy principles as a pathway to achieving a sustainable manufacturing transition that not only promotes economic development but also ensures environmental justice. By analyzing the synergies and tensions between economic growth, environmental sustainability, and social equity, the paper highlights the role of circular manufacturing in creating resource-efficient, low-waste systems. Key findings show that while circular manufacturing holds substantial potential for enhancing economic growth, job creation, and industrial competitiveness, significant barriers remain, including economic costs, technological gaps, and political and social resistance. Moreover, achieving environmental justice in this transition is essential to ensure that marginalized communities are not disproportionately affected by pollution and waste. The paper emphasizes the need for innovative policies, collaborative governance, and inclusive strategies to overcome these challenges and design equitable supply chains and manufacturing systems. Future research should focus on scaling circular practices across industries, addressing regional disparities, and developing technologies that further reduce the environmental footprint of manufacturing.