Accession Number:

ADA605432

Title:

Shari'a Compliant Finance: The Overlooked Element for Developing an Effective Financial System in Afghanistan

Descriptive Note:

Monograph

Corporate Author:

ARMY COMMAND AND GENERAL STAFF COLLEGE FORT LEAVENWORTH KS SCHOOL OF ADVANCED MILITARY STUDIES

Personal Author(s):

Report Date:

2012-06-08

Pagination or Media Count:

60.0

Abstract:

An effective financial system is essential to economic development. US Army doctrine acknowledges that military forces play an important role in supporting economic stabilization and infrastructure development. A specific task is to support the financial system. However, stability operations have not always been successful. This monograph argues that the application of Sharia Compliant Finance SCF increases bank penetration and thereby improves economic development during stability operations in Afghanistan. This leads to five lessons for military commanders. The first lesson is that SCF is at least a valuable complement for the development of a financial system in Afghanistan. Second, commanders should question and challenge the Western paradigm by a Muslim paradigm in order to prevent that the military commander develops a deficient operational approach. Third, the military has to invest in basic knowledge of the Afghan society, Islam, and SCF. Fourth, the military should start building partnerships with other organizations to enable unified action. The final lesson is that the military commander should focus on facilitating local efforts instead of providing a solution for the development of the financial system in order to achieve the maximum development results.

Subject Categories:

  • Economics and Cost Analysis
  • Sociology and Law

Distribution Statement:

APPROVED FOR PUBLIC RELEASE