Abstract
ABSTRACT Global financial shocks, such as COVID-19 and other systematic vulnerabilities, dramatically threaten the world's economic resilience. These recessional events have revealed economic weakness, especially in OIC and other developing nations. resulting in a massive amount of job losses, disturbance in manufacturing, fiscal imbalances, recessions, and deflationary issues. Existing economic recovery strategies fail to ensure long-term financial sustainability and equitable development. This study examines a comprehensive framework to disclose a resilient economic recovery model that mitigates shocks and leads to sustainability in OIC countries. This study proposes a hybrid financial innovation model that ascertains government-backed crisis funds with Islamic financing mechanisms. Which can ensure sustainable agricultural funding and promote long-term economic resilience. It will save a shocked economy from recessions by its model mechanism. Observing Pakistan, Indonesia, Saudi Arabia, Turkey, Bangladesh, Egypt, Iran, and Malaysia, this finding acknowledged why fund liquidity is the origin of origins. This qualitative research approach will combine sustainable economic modeling and a consistent funding framework which adaptable to OIC nations. These findings will work as a practical roadmap for policymakers, ensuring that agricultural financing remains stable during economic shocks and recessional periods by the support of universal financial strategies. Additionally, this research offers a model that contributes to long-term resilience and economic stability. The findings provide policymakers with a definitive framework for alleviating future crises, guaranteeing fiscal sustainability, and enabling OIC states to convert economic weaknesses into strategic advantages. Keywords: Hybrid financial model, sustainable funding, Islamic Finance, OIC Nations, Universal Shock Fund.References
Acemoglu, D., & Robinson, J. A. (2008). The role of institutions in growth and development (Commission on Growth and Development Working Paper No. 10). World Bank.
Ali, S. S. (2013). Islamic finance: Principles and practices. Islamic Research and Training Institute.
Bandura, W. N., & Dzingirai, C. (2019). Financial development and economic growth in Sub-Saharan Africa: The role of institutions. PSL Quarterly Review, 72(291), 315–334.
Beck, T., & Levine, R. (2004). Stock markets, banks, and growth: Panel evidence. Journal of Banking & Finance, 28(3), 423–442. https://doi.org/10.1016/S0378-4266(02)00408-9
Bordo, M. D., & Meissner, C. M. (2012). Does inequality lead to a financial crisis? Journal of International Money and Finance, 31(8), 2147–2161.
Canton, H. (2021). Food and Agriculture Organization of the United Nations—FAO. In The Europa directory of international organizations 2021 (pp. 297–305). Routledge.
Chapra, M. U. (2008). The Islamic vision of development in the light of Maqāṣid al-Sharī‘ah. Islamic Research and Training Institute.
FAO. (2021a). The role of stable finance for agriculture. Food and Agriculture Organization of the United Nations. https://www.fao.org
FAO. (2021b). The state of food and agriculture 2021: Making agrifood systems more resilient to shocks and stresses. Food and Agriculture Organization of the United Nations.
Ilmastorahasto. (2023). Finnish climate fund: Investment decisions and emissions reduction portfolio. https://www.ilmastorahasto.fi
International Monetary Fund. (2023). Global financial stability report.
Islamic Development Bank. (2022). Islamic finance for sustainable development. https://www.isdb.org
Islamic Development Bank. (2023). Islamic finance for sustainable development: A new pathway. IDB Publications. http://www.isdb.org
Khan, M. S., & Mirakhor, A. (1994a). Islamic banking: Experiences in the Islamic Republic of Iran and in Pakistan (IMF Working Paper No. 94/28). International Monetary Fund. https://doi.org/10.5089/9781451844928.001
Khan, M. S., & Mirakhor, A. (1994b). Monetary management in an Islamic economy. Islamic Economic Studies, 2(1).
Kose, M. A., Ohnsorge, F., Reinhart, C. M., & Rogoff, K. S. (2021). The aftermath of the pandemic: Debt surges. Brookings Papers on Economic Activity, 2021(2), 87–134.
Minsky, H. P. (1992). The financial instability hypothesis (The Jerome Levy Economics Institute Working Paper No. 74). https://www.levyinstitute.org
OECD. (2023a). OECD economic outlook, interim report September 2023: Global economic challenges and policy responses. OECD Publishing.
OECD. (2023b). OECD economic surveys: Turkey 2023. OECD Publishing. https://www.oecd.org
Proczek, M. (2023). IMF activity supporting international financial stability and sustainable development. In Global public goods and sustainable development in the practice of international organizations (pp. 211–231).
Reinhart, C. M., & Rogoff, K. S. (2009). This time is different: Eight centuries of financial folly. Princeton University Press.
Stiglitz, J. E. (2012). The price of inequality: How today’s divided society endangers our future. W. W. Norton & Company.
Wikipedia. (2023). Fehmarn Belt fixed link. https://en.wikipedia.org/wiki/Fehmarn_Belt_fixed_link
World Bank. (2023a). Global economic prospects: Slow growth, rising risks. World Bank Group.
World Bank. (2023b). World development report 2023: Shocks, risks, and economic resilience. World Bank Group. https://www.worldbank.org
Yin, R. K. (2009). Case study research: Design and methods (4th ed.). Sage Publications.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
MBER have CC-BY-SA or an equivalent license as the optimal license for the publication, distribution, use, and reuse of scholarly work.
In developing strategy and setting priorities, MBER recognize that free access is better than priced access, libre access is better than free access, and libre under CC-BY-SA or the equivalent is better than libre under more restrictive open licenses. We should achieve what we can when we can. We should not delay achieving free in order to achieve libre, and we should not stop with free when we can achieve libre.
MBER is licensed under a Creative Commons Attribution 4.0 International License
You are free to:
- Share copy and redistribute the material in any medium or format
- Adapt remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.