Islamic Human Development Index (i-HDI) and Poverty Reduction in OIC Countries

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Published: Feb 26, 2023
DOI: https://doi.org/10.4197/Islec.36-1.4
Keywords:
Poverty Human development i-HDI Organization of Islamic countries Maqasid al-Sharīʿah

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Nasim Shirazi
Professor, College of Islamic Studies Hamad bin Khalifa University
Maizura Md Isa
Senior Lecturer, Faculty of Business Management, University Teknologi MARA (UiTM), Johor Campus
Mohamed Ariff Abdul Kareem
Emeritus Professor, Faculty of Economics and Administration, University of Malaya
Mohamed Eskandar Shah Eskandar Shah
Associate Professor, College of Islamic Studies Hamad bin Khalifa University

Abstract

Focus on poverty requires a broader perspective than just concentrating on the issue of insufficient income. Thus, the adoption of human development strategies is pertinent for poverty reduction. It inspires a widening of the informational base on poverty by investigating the deprivation of functioning and capabilities of a human being. United Nations Development Programme (UNDP) has developed the Human Development Index (HDI) which can be considered the most comprehensive indicator. However, it is not fully compatible and sufficient for measuring human development from the Islamic perspective. In this study, we develop the Islamic human development index (i-HDI) based on the five pillars of the Maqasid Shariah framework; preservation of Ad-Din (faith), preservation of An-Nafs (life), preservation of Al-Aql(intellect), preservation of An-Nasl (posterity), and preservation of Al-Mal ( wealth). Also, we test the effects of (i-HDI) on poverty reduction by employing panel regression and index construction techniques. Our findings show that the elements of Islamic human development are significantly relevant to poverty reduction and could be used as an alternative to HDI. As a result, our research adds further insight to this perennial problem, enabling more effective strategies and initiatives, especially for the Muslim world.


 

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How to Cite
Shirazi, N., Md Isa, M. . ., Abdul Kareem, M. A. ., & Eskandar Shah, . M. E. S. (2023). Islamic Human Development Index (i-HDI) and Poverty Reduction in OIC Countries. Journal of King Abdulaziz University: Islamic Economics, 36(1), 71–90. https://doi.org/10.4197/Islec.36-1.4
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Vol. 36 No. 1 (2023)
Section
Article
Author Biographies

Nasim Shirazi, Professor, College of Islamic Studies Hamad bin Khalifa University

Professor Dr. Nasim Shah Shirazi is a professor at the College of Islamic Studies (CIS), Hamad Bin Khalifa University, Doha. Before joining CIS, he was working as  Lead Economist and Acting Manager, Islamic Economics & Finance Research Division, IRTI, Islamic Development Bank. Previously, he worked  Deputy Dean (Suleyman Demirel University, Almaty), and Director General, International Institute of Islamic Economics (IIIE), International Islamic University Islamabad (IIUI), Pakistan. Dr. Shirazi served as a professor at International Islamic University Malaysia as well.  He has designed, developed, and taught courses at the graduate and post-graduate levels in Economics, Finance, Islamic Economics, and Decisions Sciences at the National and International Universities. With more than 85 publications, Dr. Shirazi is well respected for his research in development economics, public finance, and Islamic Social Finance. He has supervised several Ph.D., M.Phil., and Master theses. Besides academic excellence, Dr. Shirzai has completed several consulting assignments with the World Bank, Asian Development Bank, PPAF, and private organizations. Email : nshirazi@hbku.edu.qa

Maizura Md Isa, Senior Lecturer, Faculty of Business Management, University Teknologi MARA (UiTM), Johor Campus

Maizura Md Isa is a Finance Lecturer at the Faculty of Business Management at Universiti Teknologi MARA (UiTM) Campus Segamat, Johor. Her research interest lies in the fields of Islamic economics, Islamic finance and as well as Sustainable Development Goals from Islamic perspective. She earned a Ph.D in Islamic Finance from International Centre for Education in Islamic Finance (INCEIF) in Malaysia. Email : maizu493@uitm.edu.my

Mohamed Ariff Abdul Kareem, Emeritus Professor, Faculty of Economics and Administration, University of Malaya

Emeritus Professor Datuk Dr Mohamed Ariff bin Abdul Kareem is a well-known academic with a long track record. He is an economist by training, with a bachelor’s and a master’s from the University of Malaya, Malaysia, and a doctorate from the University of Lancaster, England. He has served as Professor and Dean at the Faculty of Economics and Administration at the University of Malaya, Executive Director of the Malaysian Institute of Economic Research (MIER), and Professor of Economics and Governance at the International Centre for Education in Islamic Finance (INCEIF). He has authored, co-authored, and edited many books, including some on Islamic economics and finance, and has published numerous journal articles. Email : mohdariff19@gmail.com

Mohamed Eskandar Shah Eskandar Shah, Associate Professor, College of Islamic Studies Hamad bin Khalifa University

Assoc. Prof. Dr Mohamed Eskandar Shah Mohd Rasid is currently an Associate Dean Academic Affairs and Associate Professor at the College of Islamic Studies, HBKU Qatar Foundation. Before joining HBKU, Dr Eskandar was an Associate Professor and Associate Dean of the School of Graduate and Professional Studies at the International Centre for Education in Islamic Finance (INCEIF), a postgraduate university specialising in Islamic Finance, established by Bank Negara Malaysia. He is also the Managing Editor for the World Scientific Annual Review of Islamic Finance and an Associate Editor for International Journal of Islamic and Middle Eastern Finance (IJIMEF) and Asian Academy of Management Journal of Accounting and Finance (AAMJAF).Dr Eskandar was a Financial Sector Specialist Consultant for World Bank and Advisor for Brunei Institute of Leadership and Islamic Finance (BILIF), Brunei. He was involved in several consultancy projects with government agencies and financial institutions such as the Ministry of Energy, Malaysia, Afghanistan Ministry of Finance, CIMB Islamic Bank, Responsible Finance Institute (RFI), and ZICO Shariah Advisory.Email : mrasid@hbku.edu.qa