The passage of the constitution (Seventy-third Amendment) Act, 1992 marked a watershed in the history of Modern India. With this amendment, a uniformity structure of Panchayats emerged throughout the country. Similarly, the passage of the constitution (Seventy-Fourth Amendment) Act, 1992 was a land mark in the history of municipal administration in India. As a result of these amendments, Panchayats and Municipalities are now constitutional bodies forming third tier of the federal policy of India.1 India’s decentralization initiative in the form of seventy-third and seventy fourth Amendments poses challenges and offers opportunities. Tenth Finance Commission onwards every Finance Commission allocated the grants funds to Panchayati Raj Institutions (PRIs).
In year 2017, Bitcoin attracted most investors because high return of investment. The system for Bitcoin transaction is known as blockchain. The blockchain is blocks of transaction history that shared publicly using secured cryptography. Each block contains the previous transaction information, timestamp and new transaction data in secured cryptographic hash programming language. This paper evaluates the Bitcoin framework whether the security of the system is satisfied with a definition of reliable computer system. In the same time, this paper discovers the reliability of the programming process that involved in blockchain system. The finding of this paper will help investors to understand the blockchain system properly in developing better understanding of cryptocurrency framework. The better understanding of the blockchain will help investors making proper decision in their investment portfolio to gain better profit and preventing loss.
Cryptocurrencies’ popularity has surged during the last few years. This isespecially the case of bitcoin, one among cryptocurrencies which price has soaredfrom USD1,000 in the first quarter of 2017 to USD20,000 by the end of 2017. Ithas now being used by merchants as a medium of exchange. Upon realizing itspopularity, the CME Group that owns the Chicago Mercantile Exchange launcheda futures contract on bitcoin. Yet, there are cases where bitcoin is banned bythe country. This article examines the implication of bitcoin on Islamic financeand questions its acceptance as a medium of exchange (money) based on itscompliancy with shari’ah. By analyzing its nature and characteristics, the paperconcludes that, strictly speaking, cryptocurrencies that are not backed with realassets are not shari’ah-compliant. However, the majority of shari’ah scholarsare leaning towards approving bitcoin on maslahah basis. Bitcoin is neither fiatmoney nor real money. The absence of an intrinsic value coupled with lack orzero supervision by the central bank will result in misusing bitcoin. Furthermore,we content that it has the elements of maysir and gharar. This can contributetowards socio-economic injustices, thereby jeopardizing the maqasid al-shari’ah.Hence, based on a thorough analysis, we conclude that fiat cryptocurrencies arenot shari’ah compliant. However, gold-backed cryptocurrencies are argued to bedesirable and consistent with the maqasid al shari’ah.
Siti Rohaya Mat Rahim, Zam Zuriyati Mohamad, Juliana Abu Bakar, Farhana Hanim Mohsin · 5 authors
This study examines the two important aspect of latest technology issues in Islamic finance that related to artificial intelligence (AI) and smart contract. AI refers to the ability of machines to understand, think, and learn in a similar way to human beings, indicating the possibility of using computers to simulate human intelligence. Smart contract is a computer code running on top of a block-chain containing a set of rules under which the parties to that smart contract agree to interact with each other. The main objectives of this article are to evaluate the operations of AI and smart contract, to make comparison between the operations of AI and smart contract. This article concludes that AI and smart contract will have a huge impact in future for Islamic Finance industry.
In this article, I shall examine the compatibility of Bitcoin and other cryptocurrencies within the context of Islamic law. I shall begin by an introduction of Bitcoin and other cryptocurrencies. I will then discuss the history of money in Islamic history, with an emphasis on the importance ethical financial dealings. I will then argue that Bitcoin and other cryptocurrencies are highly compatible within Islamic finance, and in many cases, actually provide solutions to problems of government institution controlled currencies, arguing that Bitcoin and other cryptocurrencies better address several problems that early Islamic finance scholars were concerned with. Unlike traditional fiat, the supply of Bitcoin and many other digital currencies are fixed, thereby eliminating potential for gharar (deception), and also inflation. In addition, unlike fiat and precious metal coins, digital currencies cannot be altered, forged, or manipulated. Moreover, cryptocurrencies’ peer-to-peer transactions remove the need for any banking institution, thereby eliminating any risk with a third party controlling one’s money. I shall then conclude with a summary of the main points of the article, and examine future possibilities with regards to the role of digital and cryptocurrencies.
The relationship between economic growth, growth volatility and financial sector development continues to attract attention in the theoretical and empirical literature. Over time, some studies hypothesize that finance has a causal linear relationship with growth. Recently several other authors contradict this claim and argue that the relationship that exists between finance and growth is nonlinear. We investigate these claims for Nigeria for the period between 1970 and 2015, using semi-parametric econometric methods, Hansen sample splitting techniques and threshold estimator. We observed no evidence of ‘Too much finance’ as claimed by many researchers in recent times. We show that the relationship between financial development and economic growth is U-shaped. This is equally true for the relationship between financial development and growth volatility. We also discuss policy implications of our findings and recommend financial innovations and decentralization of stock exchanges to boost access to financial services, in addition, improved regulation to enhance financial market efficiency.
Fintech (or financial technology) is the current driving force behind innovations in the financial services industry. One of the most debated innovations is cryptocurrency, or digital currency, which uses blockchain technology to make a direct electronic payment between two people possible, without going through a third party (like a bank) or expensive intermediaries in order to save costs. This future money is pressurising central banks to manage the looming threat of redundancy as it overshadows fiat currency in a world of infinite fintech possibilities. Bitcoin, being the first decentralised cryptocurrency, will be the focus of this research. This digital currency is not produced by minting money in an unlimited supply, but through a virtual mining process designed to control the supply of money and make it more valuable. The increasing pace in financial innovation is pushing regulators to make a change in the way they define money and what money can be. Traditionally money is used to serve as a medium of exchange, legal tender for repayment of debt, standard of value, unit of accounting measure and a means to save or store purchasing power. Bitcoin may not fulfill all the functions of money but its scarcity value, anonymity (or pseudonymity), transparency, and autonomy from the government, make it attractive to users who are speculators, traders, merchants, consumers and netizens disenchanted with fiat money. Despite the alluring features of Bitcoin, it is not spared from potential abuses such as webcrimes, tax evasion, fraud, online black markets, money laundering and terrorism financing. In this paper, a forensic examination of Bitcoins benefits and risks will help regulators decide whether to adopt cryptocurrency and provide an appropriate framework to regulate it based on other jurisdictions approach. This paper recommends that Malaysia should fully embrace cryptocurrency due to global trends - the Islamic Development Bank is developing Shariah compliant contracts using blockchain technology; China is leading the drive to develop its own national cryptocurrency to complement fiat money; and a Shariah-compliant cryptocurrency has already entered the market backed by gold (Onegram). Financial and regulatory architectures in Malaysia should accommodate these changes to remain relevant. In addition, future research is recommended focusing on developing a Shariah compliant national cryptocurrency that is unique to Malaysia.
Crptocurrency is a type of digital currency that using decentralized method for validating transaction. In the same time, the user of the Bitcoin is protected using hash algorithm. The value of Bitcoin is increased sharply in 2017 that creates much attention from investors. The objective of this study is to develop the mathematical model evaluate growth of Bitcoin exchange rate. The data selected in this study are starting from 1st January 2017 until 10th December 2017. This study validates the normality distribution of data using graphical and numerical method. Graphical method indicates the first difference of data distribution is a non-normal distribution. Then, Shapiro-Wilk statistical test confirmed that first difference of data distribution deviate from normal distribution. The non-normal distribution occurs because of the presence of outliers. Next, this study validates the mathematical modeling fordata trend using quadratic formula. Result indicates that the growth of Bitcoin exchange rate in moving towards non-equilibrium point. This concludes that the growth of the Bitcoin exchange rate is in unstable region. The contribution of this study is to help investors to understand the nature of Bitcoin exchange rate. This study performed analysis that helps investors to develop more efficient investment portfolio in gaining better profit and reducing loss
Sunday C. Eze, Adenike O. Bello, Tolulope A Adekola
An organization can be likened to a building whose strength is determined by the structure and frames which holds it. The structure is the manner in which interrelated elements (resources) are arranged so that the building can be stable, resist stress and it provides the right form. To this end, for the performance of an organization to be effective, it is important to understand the right manner in which interrelated elements (structure) in the specific organization is arranged. To measure the performance of the organization, dependent variables such as sales, profit, and customer satisfaction will be considered. Also, the study utilized independent variables centralization and formalization organizational structures. This is to show the effects of the dependent variables on the independent variable. The research adopted quantitative design and applied mono method which brought about numerical data generated from questionnaire administered. The population of this study comprises of all staff of Covenant Micro Finance Bank as well as the customers of the banks. Total sum of 354 sample size comprising of both employees (51) and customers (303) of Covenant Micro Finance Bank is the sample size. The propositions assumed for this study are that: there is no relationship between organizational centralization and organizational customer satisfaction, there is no relationship between organizational centralization and organizational profit, there is no relationship between organizational formalization and organizational customer satisfaction and that there is no relationship between organizational formalization and organizational profit. Also, among the secondary data collected are views of various management researchers. As a result of the primary and secondary data collected, the study recommends that organizations should adopt decentralization structure and reduce formalization in the work place.
Open access
Islamic Finance and Banking Studies
Organizational Leadership and Management Strategies
Numerous studies ranging from concept papers and reviews were conducted on the matter of blockchain and digital currencies. However, those two areas are not well researched due to its being a new area of research. Furthermore, the research on blockchain applications in the Islamic financial system precisely the potential of digital currency in providing a better alternative to current fiat money system which will be the scope of this article. The aim of revolves around exploring the potential and capability of introducing a digital currency that fulfills the Islamic law (Shari’ah) functions of money and provides a more stable currency than fiat money. The method used for analyzing this object includes a library research on related topics that helps understanding the functions of money and digital currencies and study of several cases that can assist in fulfilling the objectives of this paper in introducing an Islamic digital currency through detailed research of Islamic theory of money and civilization as well as the developments of blockchain, our findings point towards the ability of introducing a Shari’ah-compliant digital currency if all the issues on validity are addressed and resolved. However, the area of digital currencies and blockchain requires further research from a Shari’ah perspective to facilitate a better understanding on the topic.
<p><strong>Abstract </strong></p><p>In Indonesia, <em>bitcoin</em> is a form of digital currency (<em>e-money</em>) and means of payment transactions that have been used by some communities. It is necessary to get attention, especially from Bank Indonesia. Other than that, the supervision that was once fully done by the central bank of Bank Indonesia, is now taken over by OJK (Otoritas Jasa Keuangan). Thus, Bank Indonesia only has the authority to regulate and control the circulation of currency only. Since some of the tasks and authorities of Bank Indonesia were taken over by OJK (Otoritas Jasa Keuangan), many things have not been covered, such as the new phenomenon in the field of finance in terms of capital, investment, currency circulation, and others. In addition there is no legal umbrella against <em>bitcoin</em>, which is increasingly widespread transaction using <em>bitcoin</em> done in <em>e-commerce</em> transactions. So in terms of security also need to be questioned, therefore there needs to be regulation and supervision specifically against <em>bitcoin</em>, and society will not feel harmed. When viewed in the perspective of Islamic law, that relating to the issuance of money as a means of transactions in a country, is a matter protected by general rules in Islamic law. Therefore, the issuance of money and the determination of the amount is matters relating to the benefit of the people. Another aspect to consider in the use of <em>bitcoin</em> is whether from the side of <em>madharat</em> is greater or benefits taken if used as currency and tool transactions, even as a commodity though. So the focus in this research is the use of <em>bitcoin</em> as currency and transaction tool by using approach and study of Islamic law.</p>
With recent alarm and focus on Bitcoin , many researchers tried to come up with studies that are related to Bitcoin. This paper tries to do the same but with a focus on the area of Islamic finance. We try to relate Bitcoin and Islamic index to find if there is any relation between these two assets and to find which will stand out if they are put in one portfolio. Since both assets are deemed to be of high risk in nature, it is an interesting topic to be investigated especially if they are put together. This analysis was carried out using the standard time-series approach of cointegration, VECM and VDC. The empirical results evidenced that Bitcoin and Islamic index are theoretically related as they are cointegrated. Another interesting finding in this study unveiled that Islamic index will be more influential than Bitcoin if they are put in one portfolio.
A. Seetharaman, A. Saravanan, Nitin Patwa, Jigar Mehta
In an era of technology advancement when the entire world is talking about the “Internet of Things” whereby we are expected to have connectivity between anything and everything, Currency cannot be left behind. Paper currency is bound to be a thing of past, as virtual currencies will start taking over and Bitcoin is well poised to achieve this feat. Not only it will revolutionize the way payments are made, but also have potential to impact the future of world currencies like USD, which is already facing challenges from EURO or Chinese Yuan Renminbi (CNY). The rise of crypto-currencies will add a new dimension to this challenge for US Dollar (USD)The focus of this study is to understand multiple factors which are translating Bitcoin (BTC) that is gaining momentum in various fields of global finance and how disruptive it can be, including replacing main fiat currencies in the financial system impacting mainly USD. The key variables studied are Regulation or lack of it around Bitcoin, Bitcoin Technology, Bitcoin Economy and the usage of Bitcoin as a Currency. This research used the latest statistical tool ADANCO 1.1.1 by Henseler and Dijkstra (2015) to analyze the data collected by building a partial least squares structural equation model (PLS-SEM). The observations of this study will help understand the future of global finance from multiple standpoints, especially Regulation, Cryptocurrencies and the fiat currencies.
Digital currency platforms such as Bitcoin, Ethereum, and Ripple are slowly but surely revolutionizing trade and commerce alongside their potential to impact people's economic lifestyles immensely. Digital currencies present a unique medium for humanitarian, mission, and more notoriosly arms and terrorism transactions around the globe. Various factors like security, legislature, and infrastructure affect the viability of adopting digital currencies in developing countries such as Zimbabwe. The research study assesses whether this technology's shortcomings outweigh the conventional means of exchange: hard cash, gold, and checks. Therefore, aiding stakeholders in making informed decisions concerning interfacing technology with economics in the developing world.
The study attempted to investigate how leadership can be used to combat corruption in decentralized governance structures of Ghana. In conducting the study, purposive sampling technique was employed to select key officials of GA south municipal assembly whose duties often promote corrupt practices. The questionnaire technique was the research instrument while a statistical package for social science was used to facilitate the analysis of data captured from the field. Findings of the study noted that under invoicing, over invoicing, payment for works not done among others are serious corrupt practices prevailing within the decentralized grassroots governance structures. It also came to light that political interference, appointing political operatives to key positions in governance units all promotes corrupt practices. The study noted that if political interference can be removed in the administration of these decentralized structures, effective leaders who are mainly technocrats can offer sound management framework for carrying out the developmental agenda of these decentralized structures. The study called on government of African countries to endeavour to finance the activities of political parties so as to remove the need for amassing wealth through fair or foul means for strengthen political structures to win elections. Strong leaders are required towards combating corruptions, however there is the need to ameliorate completely the effect of political interference in the administration of decentralized governance structures.
Fear of a creeping Islamization of the “West” and its secular legal and constitutional orders has fueled debates on immigration in the media and politics for several years. With the ascent of the so-called “Islamic State” and the horrific terror attacks it claimed or inspired, as well as the waves of refugees from Muslim-majority countries reaching European shores, debates have further intensified. They are turning increasingly populist, further feeding the flames of fear. In the United Kingdom, the successful but divisive campaign for the UK to leave the European Union is said to have strongly benefitted from voters hoping to stop Muslim (alongside East European) immigration. In the US, president-elect Donald Trump appealed to supporters during his campaign promising a complete ban on Muslims’ entering the US, if elected president. In Germany, the far right and anti-Islam movement “Patriotic Europeans Against the Islamisation of the West,” abbreviated “PEGIDA,” has won many followers; the AfD, a folkish-populist right wing party has prospered on a divisive anti-immigration, anti-Islam platform and threatens the dominance of mainstream parties. A common claim is that Muslims in the West are building states within states, where parallel legal structures in the form of Shari’a councils are the first step to erode the states’ secular constitutional order. The spread of extremist thought subversive to the state by homegrown Islamists further heightens the fear. Two recent books by Machteld Zee and John R. Bowen promise to take a closer look at Shari’a councils, their constitutional basis, practice and (in)compatibility with the constitutional order of Western states. Reviewing the books side by side, it becomes quickly clear that though they cover the same ground, and in fact, evaluate the very same institutions and their leaders, their assessment starkly diverges; itself a mirror of the prevailing polarization. The concurrent reading of both books also highlights the pitfalls of Zee’s book, while cementing Bowen’s reputation as distinguished expert on Islam and anthropology. Unfortunately, Zee’s book is beset with inaccuracies and errors, which are largely rebutted by Bowen’s book. Zee sets out asserting that “the development of British Sharia councils is the result of the combination of multiculturalism and Islamic fundamentalism.” She passionately stresses the need to talk about Islamic fundamentalism, which “challenges the relationship between religion and the state as we know it in the West” (Zee, at xi). Throughout the book, her main concern is women’s rights, a legitimate concern generally, but particularly so when considering the undeniable inequality in treatment of men and women in many Muslim majority states. In contrast, framing the background and purpose of his book, Bowen highlights “a moral panic . . . over claims that state-aided schools in Birmingham were promoting shari’a and Islamic extremism” and fears that “shari’a councils endanger[] the rule of law and gender equality throughout Britain” (Bowen, at 3). In his words, Shari’a councils “have become a flashpoint in British public debates, drawing the ire and fire of many commentators even as they adapt to the English legal environment” (at 4). In response, thereto, his book is intended as a “study of British Islam to “highlights issues and practices surrounding shari’a” (at 3). Accordingly, whilst Zee explicitly sets out her opinion on the desirability of Shari’a councils, Bowen frames his book as a descriptive and matter of fact analysis of the history and the current state of British Islam to unmask misconceptions. However, his work is not without bias either, and his underlying aim to calm the prevailing panic is apparent from the very start. Zee’s book is divided into three distinct parts, in which she sets out to cover, first, a theoretical discussion of the multiculturalist ideology, second, a summary of Islamic fundamentalism, and, third, Shari’a councils as the practical consequence of the prevailing multiculturalist ideology in the West and the Islamic fundamentalism practiced in our midst. The three parts are disjointed, as she acknowledges. In Part I, reading akin to a Bachelor or Master thesis, Zee confronts the reader with two tribes in the imaginary country of “Sea landistan,” expressing the hope “that after at least 25 years of multiculturalist sensitivities a fresh case of cultural twists can open the mind for healthy judgment” (at 19). In Sealandistan, two vastly different groups live side by side. One group kill their eldest when they reach 90, but greatly value animal welfare; another group celebrates a monthly feast during which they enjoy kicking animals to death. She then uses this artificial scenario in an attempt to deconstruct six tenets which she alleges underlie the multicultural ideology: (i) who someone authentically is, is determined by his or her cultural identity; (ii) non-recognition of this cultural identity constitutes psychological harm; (iii) culture is good; (iv) cultures are equal; (v) cultural differences are good, but if not, they should at least be tolerated; and (vi) minority cultures must not be criticized by the dominant culture which has the positive obligation to preserve these. To support her claims, she references and quotes well-known authors relevant to the multicultural debate. At the same time, the chapter is interspersed with polemic and often irrelevant statements: “We get told ‘if we were all the same the world would be a dull place’ (imagine those poor monocultural African tribes not mixed with Asian homosexuals and Maori)” (at 34). Perhaps for reasons of brevity, or perhaps for reasons of her polemic style and lack of detachment, the author does not succeed in setting out how the claimed tenets are arrived at or how the theoretical analysis and the example of Sealandistan are relevant to the remaining parts of the book. This is unfortunate as she does mention several pitfalls of multiculturalism. In Part II she addresses Islamic fundamentalism, which is built on the premise that “there is increasing competition between Islamic and secular law on Western soil” (at 52). While Zee succeeds in highlighting some of the main features of Islamic fundamentalism, it becomes apparent that the author’s knowledge of Islam, albeit not completely lacking, is limited. To illustrate, she equates Islamic fundamentalism “for the purpose of clarity . . . with the concepts of Islamism and political Islam,” while incorrectly classifying in the same paragraph Egypt’s al-Azhar University as espousing the same (at 52). Likewise, it is disappointing that she quotes Ahadiths (Arabic, plural of Hadith, the transmitted word of the prophet) by questionable secondary literature. Zee translates the infamous daraba (beating) verse of the Quran twice in her book, but fails to comment on the difference in translation, or perhaps even fails to notice it: On page 63, she translates it as “men have authority over women, for Allah has made the one superior to the other,” while quoting the same passage as “men are the protectors and maintainers of women, because Allah has given the one more (strength) than the other . . .” twelve pages thereafter. Continuing her polemic style used in Part I, she introduces Saudi Arabia as “the most ‘complete’ Sharia state, to see what happens if Islamist principles are the basis of a nation’s blueprint, starting with the judicial foundation” (at 64). This is seemingly to indicate what awaits Europe if the spread of Shari’a councils is not halted. Subsequently she cites Malaysia as a nation that “intrinsically changed for the worst” and “islamised in a short period of time” (at 73). In Part II, Zee entertains and supports the belief that the term “Islamophobia” was invented to “stifle debate and suppress criticism of Islam” and that “the term was created by Islamists to create an atmosphere of victimisation, where Muslims are continuously portrayed as victims suffering from hatred, discrimination and negative stereotyping” (at 86). Sometimes the book has undertones of a conspiracy theory, such as when the author appears to espouse the belief that Yusuf al-Qaradawi, a well-known Islamic scholar, and Tareq Ramadan, Professor of Islamic Studies at Oxford University, together with Muslim and Islamist organizations are actively working towards establishing a global Shari’a state, whereby ghettoization and institutions such as Shari’a councils are only a pre-stage to the establishment of a worldwide Shari’a state. This is allegedly based on a pact between the Muslim Brotherhood and Wahhabi Saudi Islam, which together have succeeded in a short period to build media outlets, educational centers and, importantly Shari’a councils. That Wahhabi Saudi-Arabia has had a multifarious and regularly thorny relationship with the Muslim Brotherhood, particularly in the recent past, is nowhere considered.1 Finally, in Part III and, so to speak, the culmination of her groundwork of Part I on multiculturalism and Part II on fundamentalism, Zee takes a closer look at Shari’a councils in the UK. It is here that the qualitative difference between Zee’s research and that of Bowen becomes most obvious. Both Zee and Bowen focus on the very same Shari’a Councils, namely the Islamic Sharia Council (ISC) in London, the Birmingham Central Mosque Sharia Council and the Muslim Arbitration Tribunal in Nuneaton. We will therefore look at Bowen’s book, with references to Zee’s. Whereas Zee extensively quotes tabloids throughout her book, Bowen derides the same and turns the rectification of tabloid messages into the raison d’être of his book. Bowen’s book is cohesive, and unmasks many of Zee’s assertions as erroneous. In Part I, “Pathways,” Bowen provides the reader with the origins of the establishment of Shari’a councils in the UK by looking at the historical background of British Muslims in East Asia, and the current topography, i.e., their geographical concentration in Britain and internal divisions (at 10–25). In contrast, Zee qualifies British Shari’a councils as the fruits of Saudi and Muslim Brotherhood efforts to Islamize the United Kingdom (at 116 et seq.) In Part II, “Practices,” Bowen presents his findings collected through interviews, attend ance at client sessions and Shari’a councils deliberations over a period from 2007 to 2013, as well as reviews of case files, wherever available. He deals with the same institutions as Zee does, who, however, only spent two afternoons at the ISC and half a day at the Birmingham Central Mosque Sharia Council (Zee, at 131). Bowen focuses on the legal issues and procedures in divorce cases mentioning only tangentially the general reputation of the councils’ members, with judgment reserved to the readers. This is particularly interesting in relation to the ISC, where some of the council members are known in the press as extremists or Salafists. Zee, in contrast, draws on such characterizations to further her general message of the book, i.e., that Shari’a councils are bad for our constitutional order and must be feared. Bowen’s descriptive style stands in stark contrast to Zee’s, who considers her three afternoons at Shari’a councils as sufficient evidence to draw sweeping conclusions such as that “all Sharia councils condone violence against women” (at 139). Perhaps owing to his descriptive style, Bowen consist ently remains neutral and detached, even when considering controversies surrounding Shari’a councils, for example that Islamic law, as commonly interpreted by Shari’a councils, continues to disadvantage women. The core of Bowen’s work is his detailed analysis of the constitutional challenges at stake in Shari’a councils, which he labels “unstable performativity” (Bowen, at 88–102). Given that Shari’a councils do not have legal legitimacy in the United Kingdom, with no claims to valid legal authority and only a self-proclaimed religious authority (at 89), Bowen analyses what the act of marriage dissolution performed by the Shari’a council actually amounts to in legal and constitutional terms. He explains that institutions depend on the capacity to change the world by performative acts such as decreeing, stating, affirming, announcing, pronouncing. In the works of the Shari’a councils, Bowen identifies, first, judicial performativity, whereby a marriage is dissolved by the council itself, second, the husband’s performativity, when he agrees to a divorce, even if reluctant and, third couple’s performativity, when the council certifies the breakdown of the marriage that has already occurred, i.e., when the marriage is dissolved due to nonperformance by one of the parties. Bowen shows that the Shari’a councils rely on all three performativity theories, despite them being mutually exclusive. Accordingly, their performativity is “intrinsically unstable” (at 90). In Part III, Bowen provides a detailed description of the work of the Birmingham Central Mosque Sharia Council as well as the Sufi Muslim Arbitration Tribunal in Nuneaton, both of which are also covered by Zee. Bowen focuses on the heart of the Shari’a council debate in the media, in particular the popular critique that such councils hollow out women’s constitutional protection. He highlights that within their communities Shari’a councils provide a way for women to break free from an abusive relationship, in a manner acceptable to their community. They are seen as institutions that divorce women against their husbands’ will. Thus, he suggests that they actually support women’s rights. In contrast, Zee argues that the existence of Shari’a councils forces women to seek religious divorces keeping them trapped in failed marriages longer than they should and forcing them to negotiate away rights (such as custody), they might not even know they have. Bowen highlights however that religious divorce proceedings may often last no longer than civil divorces in the UK. In Part IV, “Boundaries,” Bowen acknowledges, albeit indirectly, that Shari’a councils are lacking in terms of equality. At the same time, however, he points out that their services are increasingly adapting to the British constitutional and other legal expectations (Bowem, at 210–28). Perhaps his overall assessment is too positive and apologetic. But only Bowen’s book provides the necessary insights that enable readers to get a better understanding of the complex issues at play. Zee’s book merely polarizes. Reading their texts side by side offers several examples of the complexities involved, one of which shall suffice here for illustration purposes: Comparing Shari’a councils with their Jewish equivalent, the Batei Din, Zee mentions the fact that not many Shari’a councils have thus far applied for registration under the Divorces (Religious Marriages) Act 2002, as proof of their miso gynist leanings. Yet, Bowen’s more detailed discussion shows that the issue is a lot more complicated than that. The Divorces Act was passed with the aim of preventing limping marriages in the Jewish community, whereby a couple may have a civil divorce but the husband then subsequently declines to agree to a religious divorce. Under Jewish law, as commonly interpreted, a woman cannot divorce her husband against his will, nor can a court or Bet Din for that matter. Thus, to incentivize husbands to consent to a Jewish divorce, the Act allows the courts to halt a civil divorce, until a religious divorce is finalized. Hence, as Bowen highlights, registering under the Act might not actually benefit Muslim women. Were Shari’a councils to register under the Act, a husband would be able prolong the civil proceedings by using dilatory tactics in the religious proceedings. Since he may remarry under Shari’a, as commonly interpreted, while still being married, he would not have an interest in finalizing the divorce. Moreover, a Muslim woman may under Shari’a get divorced against the husband’s will, in stark contrast to her Jewish counterpart. There is thus no upside for Shari’a Councils to register, other than making the divorce more difficult for the wife. Bowen’s book is not without fault. While his analysis is based on extensive empirical research on Shari’a councils, he does not sufficiently address the possibility that the sessions of the Shari’a councils he attends are affected by his presence. This is true even where, as in one reported session, one of the ISC members, Haitham al-Haddad, refuses to continue the discussion since it is being recorded by Bowen (at 105). (Haitham al-Haddad is one of the members profiled by the media and Zee as misogynist and extremist.) In line with his descriptive style, Bowen’s book ends without firm conclusions or strong answers, leaving many questions open. This is due to the complex nature of the issue at stake, but can also be a little dissatisfying to the reader. In stark contrast, Zee’s book concludes with a brief plea for states to adopt “political agnosticism” as opposed to “multiculturalism” to stop the advance of Shari’a councils undermining Western democracies. (At no stage does she provide any meaningful analysis of political agnosticism.) Bowen’s book ultimately provides a very valuable resource for readers interested in the workings of Shari’a councils. The same cannot be said for Zee’s book, whose academic quality is questionable, and a good read only for those interested in affirming opinions already swayed by the anti-Muslim zeitgeist.
Purpose: Administrative decentralization seeks to redistribute authority, responsibility and financial resources to provide public services among different levels of the government. It is the transfer of responsibility for the planning, financing and management of certain public functions from the central government and its agencies to field units of government agencies, subordinate units or levels of government, semi-autonomous public authorities or corporations, or area-wide, regional or functional authorities. When governments devolve functions, they transfer authority for decision-making, finances, and management to quasi-autonomous units of local government with corporate status. According to Article 3 of the Constitution of Malaysia, Islam is the country's official religion; therefore, studying the legal system of this country, which has a Muslim background, is essentially important to our country. In addition, given the importance of decentralization in Iran, it is of considerable importance to study the challenges of the decentralization system, even when they are formed in a federal system. The Malaysian legal system, modeled based on the English law, has, after independence of the former country, chosen federalism, and, consequently, the political decentralization system for their government. However, the important issue refers to whether the system of political decentralization has been achieved completely and properly in this country and what are its damages? Decentralization can be a way of improving access to services, tailoring government actions to private needs, and increasing the opportunities for state-society interactions. Design/Methodology/Approach: This paper is formed and based on the critical paradigm with the descriptive method, and has been conducted in two sections. The first section of the study investigated the levels of government, and, in the second part, the relationship between federal, state and local governments will be discussed. Findings: Malaysia is one of the three Asian countries and the only southeastern Asian country which has chosen a federal government. The important matter is whether the mentioned federal system results in decentralization? The Malaysian government includes three layers: the federal government, the government of provinces and local government. The provincial and local governments, as the symbol of decentralization in such countries, are determined in Malaysia’s Constitution with their duties, discretions and limitations. Actually, however, the federal government interferes in provincial activities. 91 percent of financial resources are controlled by the federal government. The independent activities of local governments are hindered by factors such as limited responsibilities, federal and provincial governments’ interference in local government affairs, the role of the national association and housing ministry parallel to the local government regarding law and policy-making, existence of unique obligatory policies for all local governments, limited financial resources, and the appointment of local authorities by the federal government. Consequently, the above explanations imply that federalism, as a governmental system, will not necessarily result in decentralization. Originality/Value: Given the large number of studies on the issue of decentralization in the Iranian legal system, this paper, with the aim of observing the originality principle, intends to conduct a comparative study on the legal systems of Malaysia and the United Kingdom.