Secularism, Sharia, and the Turkish Financial Markets

The financial markets in Turkey provide a laboratory to help resolve these competing views. Islamic law or Sharia contains a number of proscriptions that directly affect financial practices. The payment and receipt of interest is prohibited; so are most kinds of commercial insurance. These interpretations provided the impetus in the Islamic world for the creation of a class of banks that sought to offer Sharia compliant services. The first Islamic Banks in Turkey began operations in the 1980s. Their entry was initially tepid, in no small part because of secularist principles. Islamic financial institutions could not overtly advertise their religious orientation. The country had no “Islamic” banks, only finance houses. They were not Sharia compliant but “interest-free.” Moreover, the government left them in an uncertain regulatory status and subjected them to restrictions on growth. In this environment, the Islamic banks remained a peripheral part of the financial system. With the election of the AKP in 2002, however, the environment for Islamic banks in Turkey changed. Limitations on branch networks and capital raising were lifted. The government removed restrictions on the issuance of Sharia compliant bonds. Officials from the Islamic banks were appointed to the highest levels of government. This Article does several things. First, it examines principles of Islam that affect banking practices, with a particular emphasis on deposit insurance and credit cards. Second, the Article discusses the emergence of secularism in Turkey and the introduction of Islamic banks into the Turkish financial markets. The Article then examine their evolution, with particular emphasis on the changes implemented by the AKP. Finally, the Article examines the impact of these reforms, and what that impact says about Islamic influence in Turkey.

Sustainable Energy Plan for a Small Island Economy: St. Vincent & the Grenadines

This paper defines a sustainable energy plan to provide the basis for renewable energy initiatives that will increase energy security, reduce negative economic impacts and provide a cleaner environment. The hotel, agriculture, transportation, construction, utility, government and private sectors will play pivotal roles in achieving targets and will see significant gains. Government policies, educational campaigns and financial incentives will be required to facilitate and encourage renewable energy development and entrepreneurship. Utilization of solar energy, energy conservation measures and the use of efficient and alternative fuel vehicles by the commercial/industrial and private sectors will be crucial in meeting targets. The utility company will be charged with developing large scale renewable energy applications and with improving efficiency of the electrical system.