IDEAS home Printed from https://ideas.repec.org/p/una/unccee/wp0812.html
   My bibliography  Save this paper

Cultural Financial Traditions and Universal Ethics: the Case of Hawala

Author

Listed:
  • Dulce Redin

    (School of Economics and Business Administration, University of Navarra)

  • Reyes Calderón

    (School of Economics and Business Administration, University of Navarra)

  • Ignacio Ferrero

    (School of Economics and Business Administration, University of Navarra)

Abstract

Taking into account the global expansion that certain traditional financial practices like hawala have experienced in the last decades, it is undeniable that both cultural diversity and different moral perceptions have become relevant questions in the international financial arena. Consequently, hawala, an ancient financial system profoundly rooted in Islamic moral traditions, offers an extraordinary setting to explore over a real institution the theoretical debate about the potential universality of ethics. Moreover, hawala makes us think over the relationship among legality, formality and morality. This paper discusses the economic, social and ethical features of hawala, in order to shed some light into the question of whether diverse economic phenomena may be judged under Western standards or rather it is necessary to appeal to a superior body of universal values, respectful with the different cultures and religions. The authors show that the current 'legalistic' approach to hawala results overly partial and biased. Therefore they conclude that it is essential to bring about a change towards a more ethically, culturally and economically sensitive approach, which would enable hawala to develop its full potential and become a vehicle for financial and economic development. It is necessary to consider the 'hyper-norms' and fundamental principles inherent to humanity, which are common to both 'formal' and 'informal', 'Western' and 'non-Western' financial practices, when designing a legal framework for these cultural financial traditions.

Suggested Citation

  • Dulce Redin & Reyes Calderón & Ignacio Ferrero, 2012. "Cultural Financial Traditions and Universal Ethics: the Case of Hawala," Faculty Working Papers 08/12, School of Economics and Business Administration, University of Navarra.
  • Handle: RePEc:una:unccee:wp0812
    as

    Download full text from publisher

    File URL: http://www.unav.edu/documents/10174/6546776/1352897641_WP_UNAV_08_12.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kevin Brown, 2010. "The Economics and Ethics of Mixed Communities: Exploring the Philosophy of Integration Through the Lens of the Subprime Financial Crisis in the US," Journal of Business Ethics, Springer, vol. 97(1), pages 35-50, November.
    2. El-Gamal,Mahmoud A., 2009. "Islamic Finance," Cambridge Books, Cambridge University Press, number 9780521741262, May.
    3. -, 2002. "Globalization and development," Documentos de posición del período de sesiones de la Comisión 2726, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    4. Stephen G. Cecchetti, 2009. "Crisis and Responses: The Federal Reserve in the Early Stages of the Financial Crisis," Journal of Economic Perspectives, American Economic Association, vol. 23(1), pages 51-75, Winter.
    5. Mark Blodgett, 2011. "Substantive Ethics: Integrating Law and Ethics in Corporate Ethics Programs," Journal of Business Ethics, Springer, vol. 99(1), pages 39-48, February.
    6. Schramm, Matthias & Taube, Markus, 2003. "Evolution and institutional foundation of the hawala financial system," International Review of Financial Analysis, Elsevier, vol. 12(4), pages 405-420.
    7. Mahmoud Mohieldin, 2012. "Realising the Potential of Islamic Finance," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 13(3), pages 127-142, July.
    8. Tripp,Charles, 2006. "Islam and the Moral Economy," Cambridge Books, Cambridge University Press, number 9780521682442, May.
    9. Mahmoud Mohieldin, 2012. "Realising the Potential of Islamic Finance," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 13(3), pages 127-142, July.
    10. Tripp,Charles, 2006. "Islam and the Moral Economy," Cambridge Books, Cambridge University Press, number 9780521863773, May.
    11. -, 2002. "Globalization and development," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 2726 edited by Eclac, January.
    12. Clive Boddy, 2011. "The Corporate Psychopaths Theory of the Global Financial Crisis," Journal of Business Ethics, Springer, vol. 102(2), pages 255-259, August.
    13. Thompson, Edwina, 2011. "Trust is the Coin of the Realm: Lessons from the Money Men in Afghanistan," OUP Catalogue, Oxford University Press, number 9780199062980.
    14. Domènec Melé & Antonio Argandoña & Carlos Sanchez-Runde, 2011. "Facing the Crisis: Toward a New Humanistic Synthesis for Business," Journal of Business Ethics, Springer, vol. 99(1), pages 1-4, March.
    15. Thompson, Edwina A., 2011. "Trust is the Coin of the Realm: Lessons from the Money Men in Afghanistan," OUP Catalogue, Oxford University Press, number 9780195473520.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dulce Redín & Reyes Calderón & Ignacio Ferrero, 2014. "Exploring the Ethical Dimension of Hawala," Journal of Business Ethics, Springer, vol. 124(2), pages 327-337, October.
    2. Mr. Etienne B Yehoue & Mr. Rodolfo Maino & Mr. Mumtaz Hussain & Mr. Yibin Mu & Mr. Enrique A Gelbard, 2014. "Islamic Finance in Sub-Saharan Africa: Status and Prospects," IMF Working Papers 2014/149, International Monetary Fund.
    3. Mahmoud Mohieldin, 2012. "Realising the Potential of Islamic Finance," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 13(3), pages 127-142, July.
    4. Viviane Azevedo & Cesar Bouillon, 2009. "Social Mobility in Latin America: A Review of Existing Evidence," Research Department Publications 4634, Inter-American Development Bank, Research Department.
    5. Paunovic, Igor, 2005. "Public debt sustainability in the northern countries of Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    6. Obadan, Mike I., 2006. "Globalization of finance and the challenge of national financial sector development," Journal of Asian Economics, Elsevier, vol. 17(2), pages 316-332, April.
    7. Lucie Kupková & Ivan Bičík & Leoš Jeleček, 2021. "At the Crossroads of European Landscape Changes: Major Processes of Landscape Change in Czechia since the Middle of the 19th Century and Their Driving Forces," Land, MDPI, vol. 10(1), pages 1-25, January.
    8. Cimoli, Mario & Primi, Annalisa & Rovira, Sebastián, 2011. "National innovation surveys in latin America: empirical evidence and policy implications," Documentos de Proyectos 3897, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    9. Filippova, Irina & Unknown, Unknown, 2013. "Кластерные Стратегии И Кластерные Инициативы: Перспективы И Факторы Эффективной Кластеризации [Cluster strategy and cluster initiatives: prospects and factors of effective clustering]," MPRA Paper 49949, University Library of Munich, Germany.
    10. Özlem Onaran & Engelbert Stockhammer, 2006. "The effect of FDI and foreign trade on wages in the Central and Eastern European Countries in the post-transition era: A sectoral analysis," Department of Economics Working Papers wuwp094, Vienna University of Economics and Business, Department of Economics.
    11. Sara Margarida Diogo & Teresa Carvalho, 2022. "Brothers in Arms? How Neoliberalism Connects North and South Higher Education: Finland and Portugal in Perspective," Social Sciences, MDPI, vol. 11(5), pages 1-21, May.
    12. Tamilina, Larysa, 2012. "Characteristics of social policies and social trust," MPRA Paper 96517, University Library of Munich, Germany.
    13. Bernhard G. GUNTER & Rolph HOEVEN, 2004. "The social dimension of globalization: A review of the literature," International Labour Review, International Labour Organization, vol. 143(1-2), pages 7-43, March.
    14. Asongu Simplice, 2014. "Globalization and health worker crisis: what do wealth-effects tell us?," International Journal of Social Economics, Emerald Group Publishing, vol. 41(12), pages 1243-1264, November.
    15. Emanuela Todeva & Ruslan Rakhmatullin, 2016. "Industry Global Value Chains, Connectivity and Regional Smart Specialisation in Europe. An Overview of Theoretical Approaches and Mapping Methodologies," JRC Research Reports JRC102801, Joint Research Centre (Seville site).
    16. Voxi Amavilah & Antonio R. Andrés, 2014. "Globalization, Peace & Stability, Governance, and Knowledge Economy," Research Africa Network Working Papers 14/012, Research Africa Network (RAN).
    17. Alje van Dam & Koen Frenken, 2020. "Vertical vs. Horizontal Policy in a Capabilities Model of Economic Development," Papers in Evolutionary Economic Geography (PEEG) 2037, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2020.
    18. Mehadi Mamun, 2021. "The Impact of Foreign Aid Conditionality on Poverty Alleviation in Bangladesh: A Recipient’s Perspective," Business and Economic Research, Macrothink Institute, vol. 11(3), pages 151-161, December.
    19. Rubini, Lauretta & Pollio, Chiara & Spigarelli, Francesca & Lv, Ping, 2021. "Regional social context and FDI. An empirical investigation on Chinese acquisitions in Europe," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 402-415.
    20. Kader, Haithem, 2021. "Human well-being, morality and the economy: an Islamic perspective," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 28, pages 102-123.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:una:unccee:wp0812. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.unav.edu/web/facultad-de-ciencias-economicas-y-empresariales .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (email available below). General contact details of provider: http://www.unav.edu/web/facultad-de-ciencias-economicas-y-empresariales .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.