The multidimensional poverty is one of the big problems faced by some countries. It is a condition of an individual that had a low income, low education and low health care. Then, Amartya Sen and Mahbub Ulhaq had offered a new measure on Development namely Human Development Index (HDI). As in Islam, the development had arranged from the approach of Maqāṣid Syarῑ’ah and Al-Ghazali (1111 H) was the first Muslim intellectual who had Developed the thesis and had divided maqasid into three aspects, ḍaruriyyah, ḥajiyah, taḥsiniyyah. Furthermore, ḍaruriyyah consist of five basic elements namely Ḥifẓ Dῑn (Religion), Ḥifẓ Nafs (Life), Ḥifẓ ‘Aql (Intellectual), Ḥifẓ Nasl (Progeny), Ḥifẓ Māl (Wealth). Therefore the aim of the study was to search how the Maqāṣid Syarῑ’ah contributed to Human development theory and what were the factors of HDI of Maqāṣid Syarῑ’ah of Al-Ghazali approach. The Study selected 37 OIC Countries for eight years by using Data panel regression. The Study Showed that Ḥifẓ ‘Aql (Intellectual) and Ḥifẓ Māl (Wealth) has significant impat on HDI. On the other hand, Ḥifẓ Nafs (Life) Ḥifẓ Nasl (Progeny) have significant impact on HDI. This may due to the quality of Human Resources and Bureaucracy in Some OIC Countries. Meanwhile, the theory of Maqāṣid Syarῑ’ah had been developed well into Human Development but still had a lot of points to be evaluated.

Objectives: Human Development Index (HDI) has multidimensional aspects of life. In fact, HDI measures only physical aspects that are needed by human such as education, health and wealth. Accordingly, discussing on human must cover material, physical and spiritual aspects. Maqāṣid is needed as a wasilah (medium) to promote the benefit of human (maslahat), which contains of daruriyyat, hajiyat and tahsiniyat. By then, this study aims to analyze maqāṣid based development variables of Umer Chapra perspective on economic growth in 9 selected OIC member countries.

Method: The methodology of the study used mixed methods: qualitative and quantitative. The quantitative applies panel data regression analysis with 9 selected OIC countries (Indonesia, Jordan, Kazakhstan, Kyrgyzstan, Mesir, Pakistan, Togo, Turkey and Uzbekistan) with time series from 2004 to 2013. For qualitative applies content analysis approach by using tafsir of Ibnu Katsir.

Results: The finding shows that all independent variables, which are literacy rate, enrollment of school, poverty rate, gini index, life expectancy at birth, rule of law and voice accountability have significant effect on economic growth in 9 selected OIC member countries, both simultaneously and individually.

Conclusion: This study concludes that HDI which is bounded by maqāṣid approach affects on increasing of economic growth in 9 of OIC member countries significantly.

This current paper examined the determinant of the poverty in the OIC countries. Our empirical model was based on IbnKhaldun development model that emphasizes several aspects, namely: the country's wealth (proxied by GDP per capita), the role of government (proxied by health and education expenditures), human resources (proxied by HDI), sharia (proxied by corruption perception index), development (proxied by investment), and justice (proxied by Gini index). We used panel data model consisting nine OIC countries over 2003-2012. This study verified that GDP per capita significantly contribute to the reduction of poverty in the OIC countries. We also found that unemployment (as a control variable) encountered a role in triggering poverty in OIC countries. Meanwhile, it found that education expenditure, Gini index, HDI, and Corruption Perception Index found no significant effect on poverty.

Purpose

The purpose of this paper is to investigate the relationships between expenditure inequality and expenditure polarization in Indonesia during the post-reformation era in 2002–2012. It also explores the various dimensions of regional groups; and finds out in which dimension did the expenditure inequality and polarization occur in Indonesia during the period.

Design/methodology/approach

Gini index was employed to measure expenditure inequality and a number of developed polarization measurement was applied to investigate the linkage between inequality and polarization at national levels. It also applied a polarization index based on inequality decomposition to investigate how the polarization occurs in the regional dimension. It covered several groups of regional dimensions; those are rural and urban areas; eastern and western regions, as well as natural resource-rich provinces and non-natural resource-rich provinces.

Findings

This study found that expenditure inequality and polarization in Indonesia have moved in line, showing an increasing trend during the observation period. In the regional context, the greatest rise was in the region with low initial levels of expenditure inequality and polarization. The trends in each of the regional dimension showed a convergent pattern. It also showed that a significant portion of total polarization was attributed to expenditure differences between urban and rural areas rather than the other groups of regions.

Research limitations/implications

The similar upward movement of expenditure inequality and polarization indicates that not only the differences between groups of expenditure are getting larger, but also the identification of the within groups expenditure are getting stronger. Since the high degree of inequality and polarization are closely related to conflict among groups of communities, this finding is a strong message to the policymaker that the development process in Indonesia during 2002–2012 tended to encourage the creation of social instability.

Practical implications

This study provides an evaluation for further development of social economy in Indonesia.

Originality/value

This paper attempts to give an overview of the relationship between expenditure inequality and polarization in Indonesia during 2002–2012. It also tries to reveal in which regional dimension, expenditure inequality and polarization occurred in Indonesia during the mentioned period. The issues have not been examined in previous empirical studies in Indonesia.

This paper proposes a model to conduct macro-stress tests of credit risk for conventional and Islamic banking in Indonesia based on scenario analysis. The aims are to investigate and to compare the financial system resilience of the two banking systems from various macroeconomic shocks. It used NPL and NPF to measures credit risk of conventional and Islamic banking. It considered several exogenous macroeconomic variables, namely Gross Domestic Product, Exchange Rate, Consumer Price Index, and Interest Rate. It applied the ARDL Model which is estimated for each type of bank credit portfolio that splits into 9 sectors. It found that a decreased in GDP, exchange rate depreciation, an increased in CPI, and interest rates contributed to encouraging a rose in both NPL and NPF levels. CPI was the biggest source of vulnerability to credit risk in both groups of banks, followed by GDP, exchange rates, and interest rates. This evidence indicates that the vulnerability of the financial system in both groups of banks did not only depend on the internal performance in each bank but also depend on the external shocks. It also confirmed that although Islamic banks and conventional banks used different operating systems, they could not be separated from macroeconomic shocks.

Purpose – This paper aims to explore different forms and models of integration between Islamic commercial finance and social finance including the problem that arise as well as the solution of each of the models to promote inclusive economic growth. At the end of the paper, the authors have identified the strategy to execute and validate by the decision-makers. 

Design/methodology/approach – This approach uses two methods which are Delphi and analytical network process (ANP). The authors conduct literature review and four rounds Delphi to construct the integration model, the problem and solution of each model, as well as the questionnaire of ANP. Moreover, using an ANP method, the authors conducted interviews with decision-makers in the areas of Islamic commercial finance as well as social finance, and analyzed the results to identify key models that would create inclusivity and quality of economic growth. To ensure credibility of the results, the authors selected the respondents based on their experience in the fields, as well as their unique perspectives that will complement the group as a whole. 

Findings – After conducting the four rounds Delphi, the authors found five types of Islamic social and commercial integration which are the ownership, institutional, operational, bottom line and mandatory integration. Based on the analysis of the ANP result, the authors argue that all integration can help the country in attaining with the support of government in terms of making the integration as a vision as well as to push the education of social finance more to the stakeholders. 

Originality/value – This study is among the emerging studies that explore operational aspects of integration of social and commercial finance within the context of inclusive growth strategy