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The Provision of Public Goods under Islamic Law: Origins, Impact, and Limitations of the Waqf System

Published online by Cambridge University Press:  02 April 2024

Timur Kuran
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Abstract

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The Islamic waqf appears to have emerged as a credible commitment device to give property owners economic security in return for social services. Throughout the Middle East, it long served as a major instrument for delivering public goods in a decentralized manner. In principle, the manager of a waqf had to obey the stipulations of its founder to the letter. In practice, the founder's directives were often circumvented. An unintended consequence was an erosion of the waqf system's legitimacy. In any case, legally questionable adaptations proved no substitute for the legitimate options available to corporations. As it became increasingly clear that the waqf system lacked the flexibility necessary for efficient resource utilization, governments found it ever easier to confiscate their resources. In the 19th century, the founding of European-inspired municipalities marked a formal repudiation of the waqf system in favor of government-coordinated systems for delivering public goods.

Type
Papers of General Interest
Information
Law & Society Review , Volume 35 , Issue 4 , 2001 , pp. 841 - 897
Copyright
Copyright © 2001 Law and Society Association.

Footnotes

For useful suggestions, I am indebted to Tyler Cowen, Murat Çizakça, Paul David, Avner Greif, Bruce Johnsen, Eric Jones, Daniel Klerman, David Powers, Joseph Sanders, Cass Sunstein, Gavin Wright, and two anonymous readers of this Review. I am grateful also to Hania Abou al-Shamat and Sung Han Tak, each of whom provided excellent research assistance.

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