THE RELEVANCE OF RISK SHARING FOR MODERN ECONOMIES
Putri Swastika, Tobibatussaadah
Postgraduate of IAIN Metro, Jalan Ki Hajar Dewantara 15a, Metro
Abstract
The purpose of this study is to confirm and demonstrate that risk sharing policy is practical and viable alternative to the conventional system. This study falls under the category of qualitative research with deductive historical approach is adopted to understand the nature of the study. Within this framework, statistical data, audio and printed materials provide the source for analysis. Hence, this study is an archival research, including inspection of documents held in libraries and on-line. This study found that in 1933-1935, Germany instrumentalized the principle of risk sharing to fund the Work-Creation Programs –a national agenda that successfully improved domestic labour market condition. There are two practical implications from the findings: First, the finding abrogates the current misconception that Islamic finance is difficult, impractical, and not viable. Second, for policy makers, the study laid out another urgency of why risk sharing principle should be adopted into economic policy.
Keywords: Risk sharing, Macroeconomic Policy, Economic History, Islamic Financial System, Germany 1933-1935
Topic: Economics and Islamic economics