chapter  7
19 Pages

A Generalized Islamic Development-Financing Instrument

The episteme of divine oneness as law and its application is introduced in the contrasting development of the participatory nature of development-financing portfolio against the prevailing idea of shari’ah-compliance in so-called financial product choice. The prevailing Islamic development financing instruments have no organic meaning of interrelationship between them. They individually form distinct legal contractual instruments. On the contrary, the generalized development-financing instrument is grounded in the participatory portfolio theory. It ties up development-financing in accordance with the precept of unity of knowledge conceptualized and applied across interacting and integrating systems. This is done first, by integrating the various financing instruments into a diversified wholeness. This allows financial resources to flow freely between the diversified instruments without legal restrictions. Second, the generalized diversified development-financial portfolio also overarches across economic, social, and ethical values as derived from the law of Tawhid in the epistemological sense of systemic unity of knowledge. The wellbeing criterion, as opposed to the maximizing objective, becomes the governing focus of the ethico-economic type portfolio.