The Relevance Of Shura In Promoting Shared Prosperity In Developed And Developing Countries: ICIS 2021

Abstract

The issue of greater inequalities and social exclusion reckoned to be the result of economic growth led the World Bank to set the new goal, to end extreme poverty and promote shared prosperity. Interestingly, the approach of the contemporary solution is largely in consonance with the maqasid or objectives of the Shari’ah. Islam is a universal religion and addresses the entire mankind not the believers alone. It is, therefore, no surprise that people irrespective of faith do often think along Islamic lines. The term shura has generally accepted by Muslims scholars as that which most closely approximates the notion of democracy. This study analyzed the impact of the shura as one elements of governance from Islamic perspective on poverty, by adopting a cross-country approach. Specifically, the study examined the impact of Shura on the poorest quintiles of the population by evaluating the relationship between the factors and the changes in the per capita income of the poor of the developed and developing countries. This study applied panel regression to examine the significance of the shura as one component of the governance from Islamic perspective towards the shared prosperity of the developed and developing countries. It is found that equality of participation, effective participation and representation are the significant factors in promoting shared prosperity. It is hoped that this study will serve as an effective mechanism for poverty eradication in the respective countries.