Reform and Regulation of Economic Institutions in Afghanistan: Formal and Informal Credit Systems

Author:   Haroun Rahimi
Publisher:   Taylor & Francis Ltd
ISBN:  

9781032157351


Pages:   276
Publication Date:   21 October 2022
Format:   Hardback
Availability:   In Print   Availability explained
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Reform and Regulation of Economic Institutions in Afghanistan: Formal and Informal Credit Systems


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Author:   Haroun Rahimi
Publisher:   Taylor & Francis Ltd
Imprint:   Routledge
Weight:   0.703kg
ISBN:  

9781032157351


ISBN 10:   1032157356
Pages:   276
Publication Date:   21 October 2022
Audience:   College/higher education ,  Professional and scholarly ,  Tertiary & Higher Education ,  Professional & Vocational
Format:   Hardback
Publisher's Status:   Active
Availability:   In Print   Availability explained
This item will be ordered in for you from one of our suppliers. Upon receipt, we will promptly dispatch it out to you. For in store availability, please contact us.

Table of Contents

Acknowledgement Preface Introduction Broader theoretical landscape and the case of Afghanistan Overview of the book’s organization and summary of its argument Methodology and Definitions Grounded Theory Sampling and Data Collection Definitions 1. Background on the Economy and the Problems of Credit Transacting in Afghanistan A General Picture of Afghanistan’s Economy under the Islamic Republic Main Types of Actors in Afghanistan’s Credit Economy An Analysis of Businesses in Afghanistan Business Registry Data on Business Registry and Initial Capital Investment in Five Major Provinces The Business Survey Data on Business Establishments in Afghanistan An Overview of the Social Context of Afghanistan’s Economy A Brief Overview of Institutional Context of Afghanistan’s Economy Fundamental Problems of Credit Transactions in Afghanistan Afghanistan Has a Volatile Business Climate Formal Property Rights in Afghanistan Formal Commercial Dispute Resolution in Afghanistan 2. Informal Financial and Dispute Resolution Institutions in Afghanistan Supply Chains and Trade Credit Market Competition and Provision of Trade Credit Weekly Payment System (Ugraee) How Businesses Come to Trust Credit Sales in Afghanistan Trade Credit versus Bank Loans Sources of Initial Capital to Start a Business Prevailing Institutions in Afghanistan Disincentivize Destructive Innovation and Creative Destruction Agency Costs Limit Business Expansion Family Businesses in Afghanistan Trade Credit from Suppliers Located Outside Afghanistan Is the Solution Curbing Credit Sales? Sarrafs and Sarrafi Markets Deposit-keeping Domestic Money Transfer (Hawala) International Money Transfer (Hawala) Currency Exchange Speculative Trade in Currencies (Sita) and Public Auctions (Booli) Sarraf’s Checks Short-Term Working Capital Loans Medium and Long-Term Sarrafi Loans Equity Financing The Case of Balkh’s Sarrafi Market Religious Prohibition of Interest and Access to Finance Regional Variations within Sarrafi Markets Gerawee Size of Gerawee Market Gerawee and its variations Important Characteristics of the Gerawee Market Bay’ al-Wafa: Sale with a Right of Repurchase Gerawee in Fatwas issued by the Afghan Muftis Status of Gerawee under Afghan Civil Code of 1977 Gerawee cases before Afghan Courts Sar qufli What is Sar qufli? Recognition of Sar qufli by Commercial Courts The Contrast between Judicial Treatment of Sar qufli and Gerawee Informal Dispute Resolution Institutions in Afghanistan: Who Uses Them and Why? Afghan Merchants Prefer Informal Dispute Resolution Institutions Who Uses Formal and Informal Dispute Resolution Institutions in Afghanistan Why Merchants Use Informal Dispute Resolution Variation in the Effectiveness of Informal Dispute Resolution Institutions Informal Dispute Resolution and Pashtun Culture The Use of Force to Resolve a Commercial Dispute 3. Afghanistan’s Formal Financial Institutions Formal Financial Intermediaries in Afghanistan: Are Sarrafs Included? Formal Regulations of Sarrafs What Is Wrong with the Sarrafi Regulation? Banks in Afghanistan Trust in Banks Banks’ Total Assets Banks’ Total Deposits Banks’ Loans Government Strategic Policies Aimed to Improve Access to Credit during the Islamic Republic Afghanistan National Peace and Development Framework (2017-2021) Ministry of Economics’ Afghan Government Economic Plan (National Economic Plan) (2013) Ministry of Commerce and Industries Strategic Plan (Commerce Strategy) (2016-2020) Afghanistan Central Bank Strategic Plan (Banking Strategy) (2017-2021) Ministry of Justice Strategic Plan (Justice Strategic Plan) (2014-2018) Analysis of Afghan Government Strategic Policies 4. A Critique of the Approach to Institutional Reform in Afghanistan, and a Proposal for a New Approach: Grounded Institutional Reform Grounded Institutional Reform: A Revised Approach for the Countries with Poor Infrastructure, Limited Market Expansion Opportunities, and a Willing Government Rationales for Anti-Informal Institutions Positions: The Problems of Formalizing Informal Institutions in Afghanistan Theoretical Underpinning of Anti-Informal Institutions in Afghanistan Practical Problems of Absorbing Informal Institutions in Afghanistan What Would Reforms Based on Grounded Institutional Reform Look Like in Afghanistan? Conclusions and Recommendations Bibliography Appendix I Appendix II

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Author Information

Haroun Rahimi has obtained his B.A. in Law from Herat University, his LLM in Global Business Law from the University of Washington School of Law, and his Ph.D. from the University of Washington. Rahimi is Assistant Professor of Law at the American University of Afghanistan. Rahimi's research focuses on economic laws, institutional reform, Islamic finance, and divergent conceptions of rule of law in the Muslim and modern thoughts. Rahimi's research has appeared in reputable local and international journals. Rahimi has also collaborated as an independent consultant with a number of research firms and policy think tanks conducting policy research on institutional development and good governance in the South Asia context. At the Oxford Centre for Islamic Studies, Rahimi has worked on Islamic finance as a poverty alleviation strategy, legal history of Afghanistan and the ways that legal transplantation is legitimized in Muslim countries. More recently, Rahimi was a visiting scholar at the International Institute for the Unification of Private Law (UNIDROIT) in Rome. Currently, Rahimi is a Visiting Professor at the Bocconi University School of Law in Milan, Italy.

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