Timur Kuran Reading

Timur Kuran Reading - Certain ME institutions including...

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Certain ME institutions, including ones rooted in the regions dominant religion, are the cause for the ME underdevelopment. I. Central Causes A. 1) The Islamic law of inheritance, which inhibited capital accumulation 2) The strict Individualism of Islamic law and its lack of a concept of corporation, which hindered organizational development and contributed to keeping civil society weak 3) The waqf, Islam's direct form of trust, which locked vast resources into organizations likely to become dysfunctional over time. 1. Weakness of the regions private economic sectors. 2. Islam though is not inherently incompatible with economic growth. II. Individually oriented contract law A. Corporate enterprise was limited to a single mission. B. No room for corporations-collective enterprises possessing legal rights distinct from those of the individuals who finance or serve it. 1. Corporations can make its own internal rules, possess property, make contracts and file legal claims, debts are not wed by its members as individuals, it can live after its founders die or retire. III. Finance without Banks A. Money lending with interest is not allowed. IV. Arbitrary Taxation and Weak Private Property Rights A. provisionism and fiscalism-two forms of governance. 1. fiscalism-the relentless drive to extract resources from ones subjects 2. Provisionism-emphasis on securing steady supplies of critical commodities, usually to keep urban populations content.
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