Social Fund Research Articles

Editorial: Embracing New Horizons

In September 2024, ‘ISRA International Journal of Islamic Finance’ (IJIF) has been rebranded, and its publication is being continued under a new title, ‘International Journal of Islamic Finance and Sustainable Development’ (IJIFSD), following an institutional collaboration between the Islamic Development Bank Institute (IsDBI) and INCEIF University. The collaboration in the publication of IJIFSD marks the interest of both institutions in driving innovative research to create more meaningful real-world impact and support sustainable economic development in societies. The collaboration brings the combined resources and expertise of the two institutions in providing a premier platform for showcasing cutting-edge research by synthesising the principles of Islamic finance and sustainable development practices. While IJIFSD will continue to be published by ISRA Research Management Centre, INCEIF University, it will now have the added leverage of IsDBI to support its sponsorship and ensure its open and free accessibility to readers. The new title incorporates the terms ‘sustainable development’ as a strategic move to align the journal with the evolving landscape of Islamic finance that promotes global sustainability goals and, thus, results in a journal that is broader in scope and coverage. Therefore, besides focusing on the areas of Islamic economics, banking and finance and its related fields—Islamic capital markets, Islamic social finance, takāful (Islamic insurance), Islamic financial law, and Sharīʿah applications in Islamic finance—attention will also be given to the discourse on sustainability and sustainable economic development. With the expanded scope, it is expected that the journal will garner increased appeal to a wider range of authors and readers. It will also be able to reach a wider range of markets that have not yet been served, as well as have greater impact through enhanced citations. The key features of the rebranded journal therefore include: Focus: emerging trends such as green finance, impact investing, financial inclusion. Platform: fostering a community of forward-thinking scholars, researchers, policymakers, and practitioners to share insights on issues of concern. Goal: providing practical solutions for sustainable economic development and showcasing Islamic finance’s role in creating shared prosperity.

Blended Islamic Social Finance-Microtakāful Model

Purpose — This research intends to explore and develop a blended Islamic social finance-microtakāful business model by integrating Islamic social finance (ISF) instruments into the microtakāful framework to enhance its effectiveness and reach. The main objective of integrating these elements is to recommend a sustainable and inclusive financial solution that is in line with the principles of Islamic finance and will address the needs of unserved and underserved segments of the population. Design/Methodology/Approach — This study employed desk research to develop a blended ISF-microtakāful model. It involved reviewing literature to assess existing models and best practices, benchmarking their effectiveness, and analysing successful implementation approaches. Insights were used to create a framework integrating Islamic finance tools with microtakāful, followed by recommendations for a sustainable and inclusive financial solution. Findings — The study portrays a conceptualised blended ISF-microtakāful business model which incorporates ISF instruments into the microtakāful model with an illustration of the business case in the context of the pandemic. Originality/Value — Though microtakāful has been accepted as a mode for providing takāful services to low-income individuals, limited research is available on how it can be blended with traditional ISF instruments such as zakat (obligatory alms), ṣadaqah (voluntary charity), and waqf (Islamic endowment). This makes the model proposed in the research novel. The originality of this research lies in its pioneering exploration of the synergies between ISF and microtakāful, opening up new avenues for research and practical implementation in the field of microtakāful.

Budgets of state extra-budgetary funds: legal regulation in the modern period

This article analyzes the legal features of the budgets of state extra-budgetary funds as targeted centralized funds. The legal status of state extra-budgetary funds as legal entities is characterized, and attention is paid to the issue of their organizational and legal form. It is concluded that the Social Fund of Russia, its bodies and divisions constitute a centralized system, however, the system of the Compulsory Medical Insurance Fund and territorial funds, which have significant powers, is decentralized. In addition, general issues of budgetary regulation of funds are considered: the procedure for drawing up and approving budgets, types of income and expenses that assume a targeted nature, the formation and approval of reporting documentation.

Fostering inclusive welfare and Islamic financing through Islamic social finance digitalization strategy

Islamic Social Finance (ISF) is one solution for poverty alleviation, which is a major concern in developing countries like Indonesia. However, the performance of ISF in Indonesia, both in terms of collection and management, is still far from expectations. To address this problem, a digital transformation of ISF is needed by leveraging technologies that come with both advantages and disadvantages. This study employs a Delphi ANP-BOCR analysis to determine the most optimal technology for ISF digitalization, which result is supported by meta-analysis findings. The result shows that cloud computing is the most optimal technology when only benefits and costs are evaluated. When all factors, including benefits, opportunities, costs, and risks, are considered, digital platform proves to be the most optimal technology for both the short and long term. BOCR analysis also confirms that digital platform and cloud computing are the most optimal technology. Meta-analysis further supports the contribution of digital platform in improving social finance performance. To optimize the implementation of ISF digitalization in Indonesia, this study provides an alternative model that incorporates multiple technologies.

Productive WAQF business models through the integration of Islamic social and commercial finance

Poverty is an apparent problem in Indonesia, with the number of people living in poverty reaching 26.36 million. Islamic Social Finance (ISF), especially through productive waqf instruments, is one of the prospective solutions to overcome this problem. Although Indonesia has enormous waqf potential, waqf realisation is still very low. There are several challenges in the waqf collection process, namely low literacy or public awareness, unprofessional management, and a lack of qualified human resources (nazhir). This research aims to determine the optimal productive waqf model to be implemented in Indonesia using the Delphi ANP-BOCR method. To strengthen the research results, this study also conducted a meta-analysis as a form of robustness check and a benefits, opportunities, costs, and risks (BOCR) analysis of each model as supporting arguments. The findings of this study show that Islamic banks as a way to leverage funds for waqf are the most prioritised model. This is because Islamic banks act as intermediary institutions that have great potential for optimising the collection and management of waqf funds, which can increase economic growth. This is reinforced by the results obtained from the meta-analysis and several supporting arguments, which show that Islamic financial institutions (including Islamic banks) can improve community welfare through the utilisation of social funds (including waqf). Besides that, this research also discusses an alternative model of productive waqf through digitalisation by adopting several technologies that aim to increase efficiency, transparency, and accessibility so as to optimise the collection and management of waqf funds more effectively and efficiently.

Getting Down to Business: Governing the Hybridization of UK Charities

AbstractCharity organizations are important to solving complex social and environmental issues that are beyond the reach of government and commercial organizations. However, these organizations are under increasing pressure for survival due to a sharp decrease in their traditional sources of funding. This study examines how leaders of charity organizations can improve the financial security and impact of their organization by adopting commercial structures into their organization, and therefore undergoing a process of hybridization. We conducted a multiple comparative case study of 18 UK charities comparing how they engaged with emerging social finance funding opportunities that required them to adopt commercial structures which lay outside their dominant logic of action. We identified several aspects that influenced the likelihood of a charity organization to engage with this opportunity and, therefore, strategically hybridize. These included whether a charity executive had sufficient socialization in both the social and commercial logics to view social finance as a strategic opportunity and whether the organization could alter the role expectations of trustees with a commercial background to enable them to actively use both logics rather than compartmentalizing them in their decision‐making. Our findings have important implications for research streams on hybridization and hybrid governance.

The Knowledge and Application of Economics in Healthcare in a High-Income Country Today: The Case of Belgium.

Healthcare is a huge business sector in many countries, focusing on the social function of delivering quality health when people develop illness. The system is essentially financed by public funds based on the solidarity principle. With a large financial outlay, the sector must use economic evaluation methods to achieve better efficiency. The objective of our study was to evaluate and to understand how health economics is used today, taking Belgium as an example of a high-income country. The evaluation started with a historical view of healthcare development and ended with potential projections for its future. A literature review focused on country-specific evaluation reports to identify the health economic methods used, with a search for potential gaps. The first results indicated that Belgium in 2021 devoted 11% of its GDP, 17% of its total tax revenue, and 30% of the national Social Security Fund to health-related activities, totalizing EUR 55.5 billion spending. The main health economic method used was a cost-effectiveness analysis linked to budget impact, assigning reimbursable monetary values to new products becoming available. However, these evaluation methods only impacted at most 20% of the money circulating in healthcare. The remaining 80% was subject to financial regulations (70%) and budgeting (10%), which could use many other techniques of an economic analysis. The evaluation indicated two potentially important changes in health economic use in Belgium. One was an increased focus on budgeting with plans, time frames, and quantified treatment objectives on specific disease problems. Economic models with simulations are very supportive in those settings. The other was the application of constrained optimization methods, which may become the new standard of practice when switching from fee-for-service to pay-per-performance as promoted by value-based healthcare and value-based health management. This economic refocusing to a more constrained approach may help to keep the healthcare system sustainable and affordable in the face of the many future challenges including ageing, climate change, migration, pandemics, logistical limitations, and financial instability.

Research on the Effects of Corporate Social Insurance on Total Factor Productivity

Social insurance is an insurance arrangement that the country or the government collects from some specific groups, such as enterprises, through compulsory means and then sets up social security funds to guarantee the basic living standards of specific groups of society, including the old, weak, sick, disabled, pregnant and temporarily unemployed. It is a legal responsibility and obligation that enterprises or employers must undertake and in the financial aspect, it is a rigid labor cost besides the wages. In China, enterprise is the main object that should afford the payment of social insurance and its contribution rate is higher than the international level, followed by some negative effects. This article prefers to study the correlation between corporate social insurance and TFP and find a reasonable range of the contribution rate based on the other researchers’ data and viewpoints. It may also provide some possible suggestions to the governments to decrease the burden of firms and ensure the development of a welfare security system.

Reconstruction of Death Insurance Regulations for Non-Wage Workers and the Sustainability of the Death Social Security Fund

This journal explores the reconstruction of death insurance regulations for workers who are not wage recipients, aimed at maintaining the sustainability of the death social security fund in Indonesia. The background of this study stems from the challenges faced by non-wage workers in accessing adequate social security benefits, particularly in the event of death, which is a critical aspect of social protection. The objective of the research is to evaluate the current regulatory framework and propose reforms that ensure equitable access and sustainability of the death benefit program for all workers, regardless of their wage status. The study employs a qualitative research method, utilizing legal analysis and case studies to assess the effectiveness of existing regulations and identify gaps that hinder the optimal functioning of the death insurance system. The results indicate significant disparities in the protection provided to wage and non-wage workers, highlighting the need for a more inclusive approach. The proposed regulatory reconstruction emphasizes the importance of expanding coverage, enhancing contributions, and improving the management of the social security fund to ensure long-term sustainability. The conclusions drawn from this research underscore the urgency of regulatory reforms that align with the principles of social justice and financial viability, ensuring that all workers, particularly those who are non-wage recipients, are adequately protected under the death social security program. This study provides a roadmap for policymakers and stakeholders to address the existing challenges and strengthen the social security framework in Indonesia.

Building the de-risking state: power, policy and Canada’s Social Finance Fund

Building the de-risking state: power, policy and Canada’s Social Finance Fund

TINDAK PIDANA KORUPSI PENYALURAN DANA BANTUAN SOSIAL COVID-19 DITINJAU DARI FIQH SIYASAH

This study aims to determine the accountability for the criminal act of corruption in the Covid-19 social assistance fund, efforts to overcome the criminal act of corruption in the Covid-19 social assistance fund, and review of fiqh siyasah against the criminal act of corruption in the Covid-19 social assistance fund. The type of research used is normative legal research, with a normative approach and a juridical approach (siyasah dusturiyah). The data collection technique used is library research technique. The results of this study indicate that accountability for criminal acts of corruption in the Covid- 19 social assistance fund is included in the category of forms of corruption that are detrimental to the state with the intention of enriching themselves so that perpetrators of corruption can be charged with criminal sanctions or even threatened with the death penalty as stated in Article 2 of Law No. 20 of 2001 amendments to the Law of the Republic of Indonesia No. 31 of 1999. To minimize the occurrence of corruption in the Covid-19 social assistance funds, preventive and repressive efforts were carried out. The criminal act of corruption in the Covid-19 social assistance fund can be categorized as an act of betrayal of the mandate and is also an unjust act because it is a form of deviation from the objectives of sharia maqasid such as religious protection (hifdz ad-din), protection of the soul (hifdz an-nafs), protection of of reason (hifdz aql), protection of offspring (hifdz an-nasab), and protection of property (hifdz al-mal).

Taxes and Islamic Philanthropy: Unlocking the Potential of Waqf in Individual Tax Reductions

Waqf, which is a form of Islamic philanthropy based on the principles of social justice and wealth distribution, has great potential to influence tax structures and government policy. This study examines the potential for integration between the tax system and Islamic philanthropy, with a focus on utilizing the concept of waqf as an instrument to reduce individual tax burdens. The research method is a literature survey of more than 20 articles related to social funds sourced from waqf as a strength of Islamic philanthropy by trying to study and analyze using qualitative methods. The results of the research are that there are five strategies that can be implemented within the framework of waqf cooperation with taxes. First, waqf assets that have been developed and have added value are entitled to tax benefits. Second, the results of cash waqf investments are eligible for tax incentives. Third, waqf assets may qualify for income tax exemption. Fourth, provide tax benefits to waqf donors. Lastly, provide tax incentives to business actors who help waqf institutions or movements. So the potential of waqf as a tax reduction instrument can be optimized, providing significant benefits for Muslim communities and driving the sustainable growth of Islamic philanthropy.

Constructing an Environmental, Social, And Governance (ESG) Index For Islamic Social Finance Institutions: Empirical Investigation From Indonesia

This study constructs an index to measure the performance of Islamic Social Finance (ISF) Institutions based on Environmental, Social, and Governance (ESG) dimensions. This quantitative research employs the Delphi Analytical Network Process (DANP) and Multistage Weight Index (MWI). The index is constructed using DANP, conducting empirical assessments using MWI, then developing indicators using Focus group discussion (FGD), in-depth interviews, and structured surveys. This study also empirically tests index's implementation on five ISF institutions in Indonesia. The high score of the governance factor in this study indicates that the five ISF institutions are still focused on enhancing governance. This ESG index for ISF institutions create in this research may cannot be applied generally to other nations or institutions. But this ESG-building indicators still can be utilized as a reference for adopting ESG in other institutions. This study contributes to the literature by creating an ESG index for ISF institutions, where more research is needed. The notion of ESG is connected to maqashid sharia and is particularly essential in how institutions execute good governance and social issues while focusing on environmental protection.

In search of lost social finance: How do financial instability and inequality interact?

The 2008 crisis and COVID-19 pandemic have highlighted the impacts of financial shocks on the vulnerable, emphasizing the challenges posed by financial instability to social finance. However, academic studies on financial instability and income inequality present mixed results. They often focus on specific instances of financial crises rather than evolving effects, examine uni-directional causality rather than interactions, and rely on slowly changing annual data instead of higher-frequency data. This study fills these gaps by examining the time-varying bidirectional relationship between financial instability and income inequality in the US, using a newly developed monthly database from January 1990 to March 2023. We demonstrate the existence of a vicious cycle in which persistent financial instability leads to increased income inequality, which in turn triggers financial crises through the harmful effects of credit deregulation. Based on these findings, we argue that a “Robin Hood strategy” of progressive taxation to improve access to quality education and healthcare could offer a more effective solution to tackle inequality than easing credit access for low-income groups through deregulation.

The Application of AHP on Selected 100 Islamic Economics and Finance Research

This study tries to review the application of research using the Analytic Network Process method in the theme of Islamic economics and finance. It uses descriptive statistical analysis based on selected 100 article publications. The entire sample publications have been published from 2008 to 2019. The results show that research using the AHP method is still dominated by discussing themes related to Islamic banks, the Halal industry, and Islamic social finance such as waqf, zakat, and Islamic microfinance. The countries with the most AHP case studies are Indonesia and Malaysia. Aam Slamet Rusydiana and Nurul Huda is the author who the most researched about AHP. The software most often used in the AHP method is expert choice. Islamic Bank Selection Criteria in Malaysia, An AHP Approach is the research that most often becomes a source of reference by other researchers.

Analisis Pelaporan dan Pertanggungjawaban Bantuan Sosial pada Laporan Keuangan Pemerintah Kota Bekasi Tahun 2019 - 2022

The significant increase in the allocation of social assistance funds is a problem in Bekasi City. As the amount of funds allocated increases, the risk of misuse or waste may also increase. The purpose of this study is to analyze the policy on the budget used for social assistance and find out the regulatory basis. As well as knowing the reporting and accountability system of the realization or implementation of the social assistance budget at the Bekasi City Government in 2019 - 2022. This research uses a descriptive qualitative research design. The data used in this study are secondary data. The sample used in this study is the Bekasi City Regional Revenue and Expenditure Budget Realization Report 2019 - 2022. Analysis of documents used in this study such as: Budget Realization Report (LRA), documentation related to social assistance, and online data sources. The results showed that the policies and systems for reporting and accountability of Social Assistance (Bansos) in Bekasi City still have several weaknesses and obstacles that need to be strengthened.

Clinical and economic assessment of using IRS®19 for the treatment and prevention of acute respiratory infections in children

Objective: to perform pharmacoeconomic analysis of the feasibility of using topical bacterial lysate in the form of nasal spray (IRS®19) for the treatment and prevention of upper respiratory tract infections in pediatric population in comparison with other drugs registered in Russia, belonging to the class of topical interferons.Material and methods. Based on the Rosstat data and information from open sources, the population of patients with acute respiratory infections (ARI) was calculated. Considering the Russian clinical recommendations “Acute respiratory viral infection (ARVI)” and “Acute tonsillitis and pharyngitis (acute tonsillopharyngitis)”, the direct medical costs of providing medical care to specialized patients were determined. Direct costs on the part of parents included all costs for purchasing medicines for basic or concomitant therapy. Direct costs on the part of the healthcare system and the state included the costs of providing medical care at the outpatient stage. Direct non-medical costs included payments for disability leaves, indirect costs – lost gross domestic product (GDP) due to absence from work.Results. The total costs of the healthcare system and the state for 1 AVI patient are 42,472 rubles in case of uncomplicated course and 70,649 rubles in case of complicated course. In case of IRS®19 application from the first day of the disease, it is possible to reduce its duration by more than two-fold. Thus, the costs of medical care amount to 2,078 rubles. Payments for disability leaves by the Social Fund of Russia will amount to 2,287 rubles, and the lost GDP – 9,148 rubles (total costs 13,513 rubles).Conclusion. For the first time in Russian economic conditions, the use of IRS®19 for ARI treatment and prevention in children was evaluated. IRS®19 application from the first symptoms of the disease allows refusing the use of topical interferons, reduces the duration of symptoms and the need for prescription of antitussives, vasoconstrictors, and antibiotics.

Bibliometric Analysis On Istibdal Waqf

Istibdal waqf stands as a powerful tool in tackling underdevelopment issues by enabling the exchange of waqf properties for more beneficial assets. This process significantly contributes to societal welfare through its charitable and religious purposes. As an emerging field, conducting bibliometric studies to examine research trends and patterns related to istibdal waqf is vital. This study analyses worldwide research trends, publication growth, publishing outputs by country, themes of interest, and co-occurrences of author keywords related to istibdal waqf. This study conducted a comprehensive analysis of istibdal waqf using the Scopus database, Microsoft Excel, and VOSviewer 1.6.18. Relevant articles were identified through specific keywords and search strings. Statistical analysis was then applied to the data extracted from the Scopus database. The analysis revealed a steady increase in publishing outputs on istibdal waqf, with most publications originating from Malaysia, Indonesia, and Turkiye. While there was a slight decrease in 2023, the surge in 2022 marked significant growth. Co-occurrence analysis emphasised the strong association between "istibdal" and "waqf," indicating the importance of managing and utilising waqf assets through practices like istibdal. This study provides a comprehensive overview of the research trends in istibdal waqf, highlighting global publications on this emerging topic. The identified co-occurring keywords, such as "cash waqf" and "waqf land," provide a nuanced understanding of istibdal waqf and may be helpful for future scholars investigating under-researched areas. Future scholars can address other themes, such as managing waqf land in general, and expand the scope of research by utilising other databases. The identified trends and patterns can also serve as a reference for policymakers and practitioners engaged in waqf management and Islamic social finance.

The Crime of Corruption in Social Assistance Funds (Bansos) Amid the Pandemic Era in Indonesia (Case Study of the Central Jakarta District Court Decision No. 29/Pid.Sus-TPK/2021/PN.JKT.PST)

This legal research is motivated by the existence of criminal acts of corruption in the midst of the pandemic. The first problem in this research is whether the decision is appropriate to ensnare the defendants of social assistance corruption. And secondly, how can the perpetrators get relief from the elements of accepting bullying from the community. This research uses normative juridical methods and types of library research, namely by examining various types of materials originating from several statutory regulations and books. The results obtained from this research are first, the form of applying the law to perpetrators in accordance with Article 12 letter b of Law of the Republic of Indonesia Number 31 of 1999 concerning the Eradication of Corruption Crimes as amended in Law Number 20 of 2001 on Corruption Crimes in conjunction with Article 55 paragraph (1 ) 1st of the Criminal Code in conjunction with Article 64 paragraph (1) of the Criminal Code. Juliari is said to have been proven to have committed corruption in the procurement of social assistance packages for handling Covid-19 in the Jabodetabek area in 2020 worth IDR 32.48 billion. So the defendant should receive a heavier sentence than the statutory regulations. Second, apart from that, the panel of judges' decision in imposing criminal sanctions must consider mitigating and aggravating factors for the defendant. The legal considerations handed down by the judge against the defendant in this case were in line with criminal law. In connection with all the elements being fulfilled legally and convincingly according to the law, it can be concluded that the elements of criminal acts of corruption regarding social assistance are fulfilled

Survey on Daily Wages of Women, Men, And Children of the Manufacturing Industry in Santiago, Valparaíso, and Concepción in Mid-Twentieth Century Chile ¿What Can Be Done with This Information?

This document transcriptions the daily wages of women and men in the manufacturing industry in Santiago and Valparaíso during mid-twentieth-century Chile. The data were published by the Yearbook of Finance and Social Funds of the General Statistical Office of Chile between 1951 and 1954. We suggest that this information may be helpful for research on a) gender gaps and b) real wages and poverty.