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on Central and Western Asia |
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Issue of 2011‒06‒25
seven papers chosen by Bibhu Prasad Nayak Institute for Social and Economic Change |
| By: | Hasan, Zubair |
| Abstract: | This paper clarifies some misinterpretations of three foundational concepts in mainstream economics from Islamic viewpoint. These are scarcity of resources, pursuit of self-interest and maximizing behavior of economic agents. It argues that stocks of resources that God has provided are inexhaustible. But important is the availability of resources out of stocks to mankind. Availability is a function of human effort and the state of knowledge about resources over time and space. In that sense resources are scarce in relation to multiplicity of human wants for Islamic economics as well. Self-interest must be distinguished from selfishness. The motive operates on both ends of human existence: mundane and spiritual. Its pursuit does not preclude altruism from human life. Counter interests keep balance in society and promote civility. Islam recognizes the motive as valid. Maximization relates to quantifiable ex ante variables. Uncertainty of future outcomes of actions makes maximization a heuristic but useful analytical tool. The concept is value neutral. What is maximized, how and to what end alone give rise to moral issues. Modified in the light of Shari’ah requirements the three concepts can provide a firmer definition for Islamic economics centered on the notion of falah. |
| Keywords: | Scarcity; self-interest; opportunity cost; maximization; Islamic Economics; israf;; heuristics |
| JEL: | A22 B22 B13 B11 |
| Date: | 2011–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:31631&r=cwa |
| By: | Selin Arslanhan; Asena Caner; Ismail Kerem Helvacioglu; Ismail Saglam; Tuncay Teksoz |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:tob:wpaper:1104&r=cwa |
| By: | Melhem Sadek; Diallo Abdul Salam; Terraza Michel |
| Abstract: | The decline in the value of US dollar and the emergence of other currencies has opened the debate within OPEC, of whether it is possible to resort to the pricing of crude oil in alternative currencies. The debate was limited because of the inadequate liquidity of most other currencies. In this paper, we focus on the implications of the shift in the pricing of Iran’s crude oil to other currencies than the US dollar. The results demonstrated that the pricing for Iranian oil in US dollar had high reaction potential and responded moderately to the change in the exchange rate, when compared to the pricing in Euro and in Yen. Consequently, it appeared that stability on the financial market led to partial stability in the oil market. |
| Keywords: | Crude Oil Pricing, Currency Basket, OPEC, Exchange Rate of Dollar, Euros, Yen. |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:lam:wpaper:13-11&r=cwa |
| By: | Anton Nakov (European Central Bank, DG Research, Neue Mainzer Strasse 66, D-60311 Frankfurt am Main, Germany.); Galo Nuño (Banco de España, Economía and Asuntos Internacionales, Alcalá 48, 28014 Madrid, Spain.) |
| Abstract: | We present a general equilibrium model of the global oil market, in which the oil price, oil production, and consumption, are jointly determined as outcomes of the optimizing decisions of oil importers and oil exporters. On the supply side the oil market is modelled as a dominant firm – Saudi Aramco – with competitive fringe. We establish that a dominant firm may exist as long as it enjoys a cost advantage over the fringe. We provide an expression for the optimal markup and compute the spare capacity maintained by such a firm. The model produces plausible dynamics in response to oil supply and oil demand shocks. In particular, it reproduces successfully the jump in oil output of Saudi Aramco following the output collapse of Iraq and Kuwait during the first Gulf War, explaining it as the profit-maximizing response of the dominant firm. Oil taxes and subsidies affect the oil price and welfare through their effect on the trade-off between oil production efficiency and oil market competition. JEL Classification: E32, Q43. |
| Keywords: | oil price, oil production, dominant firm, Saudi Aramco, oil tax. |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20111354&r=cwa |
| By: | elasarg, hussein |
| Abstract: | The purpose of this paper is to investigate the possibilities and problems for Establishment of the corporate social responsibility (CSR) in the Arab countries. The paper explores the nature and concept of CSR, particularly the Arab initiatives. As well as studying the activation of the corporate social responsibility role in the economic and social development of Arab countries. |
| Keywords: | Corporate Social Responsibility; Development ; Arab countries |
| JEL: | M14 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:31529&r=cwa |
| By: | Dehghan Nejad, Omid |
| Abstract: | In the last few years, the Iranian banking system has consistently ignored customer-orientation and its fundamental. Therefore, the banking system has not been able to use recent modern marketing very well, because of various economic and social problems such as the governmental banking system and the excess of the demand rate over supply. People do not have any incentive to use Iranian banking system, because banking system do not pay attention to their priority values and needs and just present similar services in all branches of country’s banks. Therefore, the customers refer to the banks inevitably to satisfy their elementary needs, in other words it should said that, in the current situation the people serve the banks, not the banks serve people. Regarding the environmental changes that are front of us, the banks should emphasize on its equipping, recognizing the customer’s need and expectations and regard to market situation. Because every bank can recognize and secure these needs before rivals will success in the competition field. This study attempted to analysis the role of customer communication management in Iranian banks and its weakness, strengths and goals, in addition, its executing effects and the basic role of customer as a basic and critical element for remaining the banking system. Finally, some suggestions present for reforming and improving the quality of services in the banking system. |
| Keywords: | Customer Relationship Management, customer, satisfaction, services |
| JEL: | G2 O32 J53 J5 |
| Date: | 2011–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:31478&r=cwa |
| By: | Roman Mogilevsky; Anara Omorova |
| Abstract: | The paper aims at analyzing macroeconomic and financial strategies, which are to ensure achievement of the Millennium Development Goals (MDGs) in the Kyrgyz Republic. The paper is based on results of simulations generated through the application of standard MAMS, a computable general equilibrium model adjusted to the country situation and calibrated with data of Kyrgyzstan. MAMS-model-based simulation results indicate that a continuation of the current policies under the baseline scenario would allow for achieving MDG1 (poverty reduction) only; the country would fall short of the targets for other MDGs. In order to achieve all MDGs, the country needs to increase government spending on MDG-relevant sectors (education, health, water and sanitation) by 7.8-8.1% of GDP per annum in comparison to the baseline scenario. The scenario that combines increased taxes and aid inflows seems to be the most realistic, but it would still require very substantial increases in tax collections and grant aid. The situation is going to be easier, if the economic growth rates 2011-2015 would be higher than 7% per annum. This is possible, if the government would be more successful in implementation of structural reforms, FDI and private domestic investments attraction and mobilization of resources for infrastructure development. Another possible way out is a substantial increase in government spending efficiency allowing for receiving higher social returns for money spent. |
| Keywords: | CGE model, Kyrgyzstan, macroeconomic policies, Millennium Development Goals |
| JEL: | D58 E61 E62 H50 H51 H52 H54 H6 I1 I2 O11 O15 O53 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:sec:cnrepo:0095&r=cwa |