Agricultural Credit Under Economic Liberalization And Islamization In Sudan

This study uses survey data to examine the operations of the agrarian credit market,formal and informal, in Sudan under conditions of recent economic liberalization and Islamization; the latter does not allow interest rate fixing. In addition to descriptive analysis, the study specifies and estimates a model of farm household participation in the credit market. The survey results show a substantial increase in formal borrowing in agriculture, but relatively low informal credit. Implicit interest rates are found to be high in the formal segment compared with their previous levels, and the levels of formal and informal agrarian rates of interest are comparable. The research concludes that there is a need for enhanced institutional financial intermediation in the agrarian credit market as well as scope for the promotion of savings and credit associations among farmers.

Macroeconomic uncertainty, financial development and economic growth in Zimbabwe

A conference paper on the impact on international environmental management policies on trade relations between developed and developing nations such as Zimbabwe. Originally prepared for: "Conference on Zimbabwe: macroeconomic policy, management and performance since independence: lessons for the 21st century," 19-21 August, Sheraton Hotel, Harare.Zimbabwe has one of the most well-diversified economic structures in Sub-Saharan Africa with a relatively sophisticated financial and capital market. Yet over the last two decades and a half, the country has experienced low and variable real GDP growth rates. In 1982-89 Zimbabwe recorded a negative average real GDP per capita growth rate of -0.2 percent, which fell further to an annual average rate of -3.2 percent in 1990-95. In addition, the country faces growing macroeconomic uncertainty mainly due to high public deficits and high inflation. Inflation, which is an indicator of macroeconomic uncertainty increased from an average of 13.7 percent in 1982-89 to 26.2 percent in 1990-95, while government budget deficit averaged over 9 percent of GDP between 1980 and 1995. Thus, as in other developing countries, macroeconomic stability and liberalisation are prerequisites for economic recovery and sustainable growth in Zimbabwe

Foreign Capital Inflow, Domestic Credit and Private Investment in Swaziland

Historically, private investment in Swaziland relied heavily on foreign resources, which have been rapidly declining in the 1990s. This article examines the role of domestic credit and interest rate policy in promoting desired and sustainable investment rates in the country, in the context of the common monetary agreement. While foreign capital inflow has a significant effect in the long-run, private investment is found to be always responsive to changes in bank credit to the private sector. The paper argues for increased mobilisation of domestic resources and non-credit support to domestic enterprises as means for stimulating domestic investment and employment. Eastern Africa Social Science Research Review (EASSRR) Vol. XVII No. 2 June 2001, pp. 69-9

Islamic economics: a survey of the literature

A central thesis of this paper is that social science is the study of human experience, and hence is strongly conditioned by history. Modern Western political, economic and social structures have emerged as a consequence of the repudiation of religion associated with the Enlightenment and are based on secular principles. Many of these are inimical to Islamic principles, and cannot be adapted to an Islamic society. Muslim societies achieved freedom from colonial rule in the first half of the twentieth century and have sought to construct institutions in conformity with Islam. The development of Islamic economics is part of this process of transition away from Western colonial institutions. This paper is a survey of the literature on Islamic economics, which focuses on the contrasts between Western economic theories and Islamic approaches to the organization of economic affairs