Social Role of Alms (zakāt) in Islamic Economies

Islam as both religion and socioeconomic system is based on five main pillars, that is – five basic acts considered mandatory by Muslims, summarized in the hadith of Gabriel. One of them is zakāt (almsgiving), i.e. giving 2.5% of one’s wealth to the poor and needy. In contrary to Christian religion, where question of charity is rather of a voluntary matter, the role of zakāt in Islam is much more rigidly described. Almsgiving is considered as a duty of a pious Muslim towards the poor. Thus in Islamic economy, strongly based on Islam principles given by Allah to Muhammad, zakāt is imposed by law and is not considered a charity but duty rather. The notion of zakāt is mentioned in Qur-an over a 100 times, solely or in conjunction with other commandments. On a basis that zakāt is to be paid as a part of total wealth exceeding given minimum wealth (nisab) it is then justifiable to say that zakāt is principally a tax. A role of this essay is to shed some light on a utilisation and role of zakāt in Islamic economies in socioeconomic context, with an example of Islamic Republic of Pakistan, where in 1980 the Zakāt Ordinance was imposed. The concept of zakāt is present in many Islamic countries, but its nature varies, being dependent from the interpretation of religious law in a given country. Everywhere though, its social role as an important tool maintaining social justice is strongly expressed. Of course zakāt system also has its drawbacks and is subjected to much criticism. The article aims to present both advantages and negative aspects of zakāt

On the road to the euro zone. Currency rate stabilization: experiences of the selected EU countries

The aim of this article is to show the threats connected with the exchange rate stabilization within the framework of ERM II and the analysis of the randomly selected EU countries – candidates for the Euro Zone. A two year stabilization of the exchange rate within the ERM II required prior to the Euro Zone accession is connected with numerous risks typical of a fixed rate with a hard band of fluctuations. There are two ways of exchange rate stabilization – a standard one as in the case of the Slovenian Tolar or a currency board (the case of the Baltic states). Neither of them is free of drawbacks. Against this background a question can be formulated: is the exchange rate stabilization indispensable for the Euro Zone accession at all? More and more arguments are raised against it. The most relevant ones refer to the criteria of price stability and fiscal stability. Stabilization of the exchange rate within the ERM II for two years in the situation of free capital flows may not be successful and there is a probability of the currency crisis in the country stabilizing the exchange rate.monetary union, euro zone, euro, ERM II, system of exchange rate, fixed exchange rate, floating, currency board, impossible trinity, fiscal stabilization, stabilization of exchange rate, budget deficit, public debt, interest rate, current account, FDI, foreign portfolio investment, Samuelson- Balassa effect, inflation, speculation attack.

EMU – Fiscal Challenges: Conclusions For the New EU Members.

The aim of the paper is to evaluate fiscal challenges which are facing the Economic and Monetary Union countries after four years of monetary union functioning. Then, the author formulates conclusions for accession countries which are planning to become members of the Economic and Monetary Unions in the near future. The first part of the paper deals with the criteria of fiscal stabilization within EMU, their significance and links to economic growth. On the one hand, these criteria limit possibilities of using fiscal policy to stabilize economy after economic shocks. On the other hand, the fiscal criteria have also a positive influence because of the introduction of discipline into the economic policy, which is created by the policy makers who often act under the pressure of their political parties. At this point, short- and medium-term economic policies and long-term political decisions come into conflict. After four years of EMU functioning, the budget deficit and public debt have appeared as challenges again. The selected countries discussed are: Portugal, Germany and France. In the case of fiscal stabilization, governments of many EMU countries increased the tax burden rather than cut budget expenditure to achieve a lower deficit. In Germany, France, Portugal and many other countries governments did not implement radical structural reforms of public finance. The new EU member’s countries are facing the necessity of economic adjustment to the convergence criteria, and among them - criteria of fiscal stabilization. Experiences of selected EMU countries let us conclude that nominal convergence should result from real convergence processes. Thus, fiscal stabilization should result from deep changes in the structure of the public finance and tax systems.EMU, Convergence Criteria, budget deficit, fiscal and monetary policy, Stability and Growth Pact, adjustment process, asymmetric shocks.

The Maastricht convergence criteria and economic growth in the EMU

The Maastricht convergence criteria are partially based on the theory of optimum currency areas and costs-benefits analysis of the creation of a single currency area as the EMU foundation. Fulfillment of convergence criteria should be durable, but it requires a certain degree of real convergence between member countries of the monetary union. The analysis of the economic role of the convergence criteria which has been carried out in this paper indicates that its implementation has been an important factor of macroeconomic stabilization for the EMU countries as well as for the countries planning accession to the Union. On the basis of the theory of economics and results of empirical studies we cannot state univocally that the convergence criteria are a barrier to economic growth. Naturally, this problem is controversial, but we can formulate a hypothesis that implementation of convergence criteria is an important factor of macroeconomic stabilization and sustainable economic growth.monetary union, monetary policy, fiscal policy, costs-benefits analysis, single currency, inflation, economic growth, budget deficit, public debt, coveregence criteria

Transitions from unemployment in Poland: a multinomial logit analysis

This paper presents the multinomial logit analysis based on the individual Polish LFS data stretched over the 1997-2004 period. It's main goal is to scrutinize the determinants of outflows from unemployment at the time when the two shocks have affected the Polish economy and labor market. It focuses mainly on the supply-side factors influencing probabilities of transitions out of unemployment, including personal characteristics and unemployment benefits. Special attention is devoted to the analysis of the impact of search behavior and labor market policies on individual's chances of finding job.Labor dynamics, transition economies, labor market institutions, job search, multinomial logit

Doping dependence of the Nernst effect in Eu(Fe1-xCox)2As2 - departure from Dirac fermions physics

We report a systematic study of the transport properties in the series of Eu(Fe1-xCox)2As2 single crystals with x = 0, 0.15, 0.20 and 0.30. Spin-density-wave order is observed in the undoped and the least doped samples (x = 0, 0.15), while for x = 0.15 and 0.20 Eu(Fe1-xCox)2As2 becomes a superconductor. We found the properties of the parent EuFe2As2 compound well described by the Dirac fermions model, whereas cobalt doping caused an evolution of the system toward a regular metallic state. The antiferromagnetic ordering of the Eu2+ ions at T_N ~ 20 K has only minor influence on the measured quantities.Comment: 5 pages, 5 figures; ver.3: the sign convention for the Nernst coefficient is change

How do parking practices structure urban territorial communities?

In this article we analyse the socio-spatial contexts and consequences of the practice of car parking in housing estates. Fredrik Barth’s idea of socially constructed boundaries and the theory of social practice form the theoretical basis of our analysis. The empirical material comes from research conducted in 2016 and 2017 in three Polish cities. We analyse the practice of parking in terms of the specific aspect of mobility that is ‘mooring’. The research shows that parking practices influence the structuring of territorial communities in housing estates on two levels: everyday activities, norms and rules, as well as social differences and boundaries in the space occupied by the housing estate