Understanding Ottoman Microcredit Mechanism: The Case of Cash Waqfs

Abstract

Competition and cooperation have influenced the evolution of human societies throughout history. On the basis of these variables, diverse societies have shaped their economic and social structures, with some emphasizing competition and others emphasizing cooperation. Individ ualism and collectivism, as characterized by Greif (1994), have been used to characterize these societies through a variety of scholarly studies. However, these studies frequently ignore the values recommended by reli gions to their adherents. In addition, Kuran’s (1997, 2003) assertions that Islam and Islamic fiqh/law contribute to underdevelopment lack a solid foundation in basic knowledge. In spite of this, the Islamic economic and financial system integrates a broader spectrum of values. The purpose of this paper is to examine the influential institutions that have influenced the Islamic economic and financial system, with a focus on the micro f inance mentality. To achieve this, an analysis of the prevalent mentality and current condition of the conventional economic and financial system is required.