The World Bank has agreed to collaborate with the Islamic Development Bank (IDB) "in the development of Islamic Finance, according to the Arab News. The Jeddah-based IDB, which Shariah Finance Watch describes as "the financial jihad wing of the Organization for Islamic Cooperation (the worlds foremost Islamic imperialist organization), has a disturbing history and role in international finance that you can read about here.
The Global Muslim Brotherhood Daily Report has previously described the IDBs role "in funding a project of a Ukrainian Brotherhood organization, in financing the projects related to the Islamic Society of North America (ISNA), and sponsoring a philanthropic conference held by an organization with Brotherhood ties. Another post noted that IDB representatives were in attendance at a Saudi charity seminar attended by Wael Julaidan, possibly the known founder and financier of Al Qaeda.
Sounds like a great partner for peace and global economic prosperity, doesnt it? From the Arab News last month:
World Bank and IDB sign Islamic finance deal
The World Bank and Islamic Development Bank have signed a Memorandum of Understanding (MoU) to set out a framework for collaboration between the two parties and lend support to global, regional and country efforts in the development of Islamic Finance.
World Bank Managing Director Dr. Mahmoud Mohieldin and Islamic Development Bank Group President Dr. Ahmad Mohamed Ali signed the memorandum on behalf of their institutions with the common objectives of fostering, encouraging, and studying the expansion of Islamic finance globally.
The MoU adopts the following principles:
Knowledge sharing to identify and disseminate sound practices in the Islamic financial services industry. Cross fertilization of ideas that would foster the development of Islamic finance that is critical for growth, efficiency and financial inclusion. Encourage research and promote awareness of appropriate risk management framework for Islamic financial institutions in particular and the Islamic finance industry in general; and Capacity building in the Islamic financial services industry with a view to fostering financial stability and promoting increased access to Islamic financial services in markets around the world.
World Bank Managing Director Dr. Mahmoud Mohieldin stressed the importance of the memorandum for increased capacity-building and knowledge-sharing between the two organizations.
"The MoU signed today between the IDB and WB will help us deepen our understanding of Islamic finance and build capacities to develop institutions and instruments to support sustainable inclusive growth and help societies to achieve their development goals with emphasis on poverty alleviation and shared prosperity, he said.
"The signing of MoU between the World Bank and IDB aims to forge a strategic partnership between our two institutions in the area of Islamic finance to support inclusive growth, including greater access to finance for the poor, and financial stability in our mutual member countries, said IDB President Dr. Ahmad Mohamed Ali.
"We expect to do this by expanding our knowledge base as well as our ability to support our member countries efforts to build resilient institutions and develop instruments to achieve greater financial inclusion and sustainable development, he added.
The core tenant of Islamic finance is a system which promotes risk-sharing and the avoidance of interest and leverage.
Global Islamic Financial assets have increased significantly over the past three decades, crossing $ 1 trillion in 2010 and estimated to have exceeded $ 1.2 trillion in 2011, up from about $ 5 billion in the late 1980s.
Islamic finance could accounts for a substantial share of financial services in many countries in the coming years.
Through the MoU, the World Bank and Islamic Development Bank will explore Islamic Finance as a potential tool supporting the efforts of countries to reach their development goals.
The World Bank previously dallied with at least one sukuk (Islamic bonds) issuance in 2009, and declared Islamic finance to be a "priority area last year. The World Bank also co-hosts an annual conference with AAOIFI, a Bahrain-based standards setting board for sharia finance that is chaired by the notorious sharia law advocate, Taqi Usmani.
The World Bank is funded by member country contributions from taxpayers like you, and international investors and institutions that buy their bonds. (continue reading...)