The first pillar of the Islamic development framework is building an objective-focused institutional framework that creates an enabling atmosphere for public policy design. It is critical as the basis on which the other pillars of the framework build on and perform optimally.
Institutional development from an Islamic economic perspective is oriented towards achieving the objectives of Shariah, interpreted as well-being for all stakeholders as a consequence of all economic and financial activities.
For achieving these objectives, the Islamic development perspective on the institutional framework is based on, public policy and laws to ensure contract enforcement and secure property rights through substantive morality; justice which is alleviating hardship and reducing information asymmetry so that equality can be established between all the stakeholders involved; reducing risk, uncertainty, and ambiguity, strengthening social solidarity, bringing private and public interests into closer harmony, and fostering coordination to achieve risk sharing.
This video is licensed under the CC BY-NC-SA license