Fatima Muhammad Abdulkarim Livres

Income inequality poses a significant challenge in both developed and developing nations, with financialization identified as a key contributor. This book provides a detailed examination of how financialization has exacerbated income inequality in Organization of Islamic Cooperation (OIC) countries. In many developing economies, finance has taken precedence over the real sector, leading to a society increasingly reliant on credit. This dependency fosters a cycle of debt, trapping individuals in financial strain. The book serves as a crucial resource for students, practitioners, and the general public, presenting data that illustrates the correlation between rising debt and income inequality in Muslim countries. It discusses the growth of rentier income, the financialization of daily life, the decline in physical capital accumulation, and the deregulation of the financial sector. Furthermore, it offers solutions for Muslim countries to address their economic challenges, advocating for the adoption of Islamic principles that emphasize risk-sharing contracts over debt-based transactions. By promoting risk-sharing, economic gains can be equitably distributed among all parties involved, not just capital owners. Written in accessible language, this book is an essential reference for anyone interested in understanding the recent drivers of income inequality in the Muslim world.