An Exploratory Study of the Discourse of Islam and Development: the Case of the Islami Bank Bangladesh
Total Page:16
File Type:pdf, Size:1020Kb
AN EXPLORATORY STUDY OF THE DISCOURSE OF ISLAM AND DEVELOPMENT: THE CASE OF THE ISLAMI BANK BANGLADESH by Ralf Kroessin A thesis submitted to the University of Birmingham for the degree of DOCTOR OF PHILOSOPHY International Development Department School of Government and Society College of Social Sciences University of Birmingham July 2012 University of Birmingham Research Archive e-theses repository This unpublished thesis/dissertation is copyright of the author and/or third parties. The intellectual property rights of the author or third parties in respect of this work are as defined by The Copyright Designs and Patents Act 1988 or as modified by any successor legislation. Any use made of information contained in this thesis/dissertation must be in accordance with that legislation and must be properly acknowledged. Further distribution or reproduction in any format is prohibited without the permission of the copyright holder. ABSTRACT The relationship between religion and development is a relatively new research area, complicated by the arguably ‗secular reductionism‘ and ‗materialistic determinism‘ of mainstream development theory and practice. Against this backdrop, this doctoral study examines the relationship between Islamic and mainstream development discourses, analysing the complex power relations at work within the discursive practices of the development field through a conceptual apparatus comprised of a Foucauldian notion of power and discourse and a Laclauan view of hegemony. The objective of this study is to develop a better understanding of how Islamic development policy making and makers have made meaning of the central issues of development and progress as expressed in the body of theory and practice that makes up the development field. Interestingly, Islamic thinkers were already criticising the Euro-centric nature of the development discourse in the 1950s and 60s. They proposed an Islamisation of knowledge, particularly in the field of economics, as a way of overcoming a perceived ‗Western‘ domination. In pursuit of the question as to how ‗Islam‘ relates to the issue of development and progress, this thesis explores the genealogy of the mainstream and the Islamic development discourses, illustrated by a selected case study within the development field in Bangladesh. Having re-cast development within an Islamic framework, and in opposition to what is perceived to be the secular-materialist mainstream, the Islami Bank offers an insight into how particular truth claims are formulated and upheld in the battle to fill the concept of development with meaning. Theoretical and methodological implications emerging from this research study demonstrate the value of applying a more rigorous use of the concepts of power and hegemony within a post-development framework by mapping the complexity of discourses struggling within a given terrain in order to better understand power relations and their effects. -1- ACKNOWLEDGEMENTS I would like to thank the Board of Directors of the Islami Bank Bangladesh Limited for facilitating my field research. - 2 - TABLE OF CONTENTS ABSTRACT 1 ACKNOWLEDGEMENTS 2 LIST OF FIGURES 7 LIST OF TABLES 7 LIST OF BOXES 7 INTRODUCTION TO THIS DOCTORAL RESEARCH 8 Chapter overview 10 CHAPTER 1: LOCATING AND CONCEPTUALISING THIS STUDY 13 1 Introduction: setting the scene 13 1.1 Objectives of this doctoral study 15 1.2 Religious discourses and development: Antagonisms between mainstream and alternative discourses in development 16 1.2.1 Islam as an alternative development discourse 21 1.3 A conceptual framework for understanding mainstream and religious development discourses and their relationship 23 1.4 Locating this study: the post-development critique of development and alternative development 24 1.4.1 Critiques of the post-development critique 27 1.5 Conceptualising research on discourses in international development 31 1.5.1 Power 33 1.5.2 Discourse 35 1.5.3 Hegemony 36 1.6 Conclusion 40 CHAPTER 2: RESEARCH METHODOLOGY: ANALYSING DISCOURSE AND POWER RELATIONSHIPS 42 2 Introduction and summary of the research study 42 2.1 Conceptualising the analytical strategy for this doctoral study 42 2.2 Refining the research question 44 2.3 Methodology 47 2.4 Discourse analysis 48 2.4.1 Foucauldian discourse analysis 49 2.5 Critical Discourse Analysis 55 2.5.1 Operationalising Critical Discourse Analysis 57 2.6 Key analytical tools and associated categories 59 2.6.1 Deconstruction 59 2.6.2 Inter-textual analysis 60 2.6.2.1 Voice 61 - 3 - 2.6.2.2 Assumptions 61 2.6.3 Hegemonic analysis 62 2.6.3.1 Field and orders of discourse 62 2.6.3.2 Policy 64 2.8 Conclusion 72 CHAPTER 3: A GENEALOGY OF THE MAINSTREAM DEVELOPMENT DISCOURSE: UNDERLYING ASSUMPTIONS AND POLICY IMPLICATIONS 74 3 Introduction and purpose 74 3.1 Defining the term ‘development’ 75 3.2 Assembling the archive: a short history of development theory and practice 77 3.3 Key ideas in mainstream development theory 80 3.4 Continuities and key assumptions of development theory and practice 89 3.4.1 Economic growth 89 3.4.2 Modernisation 91 3.4.3 Conceptualising, defining and measuring poverty 93 3.5 Key discursive turns in the mainstream development field 100 3.6 Conclusion 102 CHAPTER 4: A GENEALOGY OF THE ISLAMIC DEVELOPMENT DISCOURSE: UNDERLYING ASSUMPTIONS AND POLICY IMPLICATIONS 103 4 Introduction and purpose 103 4.1 Diversity of Islamic discourses 103 4.2 Aims and objectives of Islam 107 4.3 Defining the term ‘development’ in Islam 109 4.4 Key concepts of Islamic development thinking and practice 111 4.5 Development of early Islamic theological and philosophical thought 112 4.6 The origins of Islamic social theories pertaining to development 113 4.6.1 Backwardness and retardation: the ‗underdevelopment‘ of the Muslim World? 114 4.7 Foundations of contemporary Islamic social theory: fundamentalism, modernism and traditionalism 117 4.7.1 Fundamentalist revivers 119 4.7.2 Traditionalist revivers 120 4.7.3 Modernist revivers 122 4.8 Key characteristics of Islamic revivalism and its relationship to developmental thinking 127 4.9 Assembling the archive: a short history of Islamic thought pertaining to development 129 4.9.1 Common scriptural themes around poverty reduction 130 4.10 Vehicles for redistributive justice: Zakat, Sadaqah and Waqf 132 4.10.1 Defining poverty in an Islamic context 136 - 4 - 4.10.2 The Islamic poverty narrative 141 4.11 Islamic economic and development thought 143 4.12 Contemporary Islamic development policy approaches and articulation of practice 155 4.12.1 Transnational Islamic development co-operation 156 4.12.2 Muslim civil society and development 164 4.13 Key discursive turns in the Islamic development field 166 4.14 Conclusion 170 CHAPTER 5: CONTEXTUALISING THE DEVELOPMENT FIELD IN BANGLADESH: BETWEEN A PEOPLE’S REPUBLIC, THE WASHINGTON CONSENSUS AND POLITICAL ISLAM 172 5 Introduction and purpose 172 5.1 The development field in Bangladesh 172 5.2 A brief history of development in Bangladesh 174 5.3 The Bangladeshi political rollercoaster: socialism, capitalism and political Islam 177 5.3.1 Pre-independence approaches to development and poverty reduction 177 5.3.2 Mujibad: secular state-centred development in early Bangladesh (1971 – 1975) 178 5.3.3 Military rule, market liberalisation and Islamisation under Musthaq, Zia and Ershad (1975 - 1990) 180 5.3.4 Return to parliamentary democracy: Sheikh Hasina, Khaleda Zia and the Jamaat (1990 - present) 182 5.4 Articulations of poverty and development in Bangladesh 186 5.5 Key development actors 190 5.5.1 The Government of Bangladesh 191 5.5.2 International Financial Institutions 194 5.5.2.1 International Monetary Fund 195 5.5.3 World Bank 196 5.5.4 Asian Development Bank 197 5.5.5 Islamic Development Bank 198 5.5.6 Bilateral donors, OECD and DAC 199 5.6 Multi-lateral bodies and regional co-operation 201 5.7 Non-governmental organisations 201 5.8 Civil society and key socio-political movements 203 5.8.1 The media 204 5.8.2 Academia 204 5.8.3 Islamic religious movements and political Islam in Bangladesh 207 5.9 Discursive formations and hegemonic articulations in the development field in Bangladesh 210 5.9.1 Millennium Development Goals 211 5.9.2 Bangladesh’s constitution 212 5.9.3 Bangladesh’s Poverty Reduction Strategy Papers 214 5.9.4 Five-year plans 222 5.10 Mapping the discursive relationships of Bangladeshi development policy 224 5.11 Conclusion 230 - 5 - CHAPTER 6: INFLUENCES AND RELATIONSHIPS BETWEEN ISLAMIC AND MAINSTREAM DEVELOPMENT IN BANGLADESH: THE CASE OF THE ISLAMI BANK BANGLADESH 232 6 Introduction and purpose 232 6.1 Background: History and objectives of the Islami Bank 233 6.1.1 Origins of the Islami Bank Bangladesh 234 6.1.2 The legal environment 235 6.1.3 Role and objectives of IBBL 238 6.2 Islamic banking at the crossroads: the antagonistic frontier between political Islam, secular Mujibism and the Washington Consensus 241 6.3 Analysis of the network of practices in Islamic finance in Bangladesh: the case of the Islami Bank 243 6.4 Islami Bank Bangladesh Limited: financial institution, social development agency or political force? 251 6.5 The Rural Development Scheme: Material or spiritual growth? Or both? 258 6.5.1 Making meaning of development 261 6.6 Mapping out IBBL’s policy footprint and network of practice 268 6.7 Conclusion: ‘Islamist’ banking and development in Bangladesh – articulatory practices subverting, challenging or re-claiming the dominant paradigm? 276 CHAPTER 7: SUMMARY OF FINDINGS AND CONCLUSION 282 7 Introduction 282 7.1 Summary of the dissertation 282 7.2 Key findings: answering the research questions 283 APPENDIX A: LIST OF INTERVIEWED ORGANISATIONS 292 APPENDIX B: INTERVIEW GUIDE (FOR IBBL STAFF) 293 APPENDIX C: KEY IBBL POLICY DOCUMENTS 294 BIBLIOGRAPHY 295 - 6 - LIST OF FIGURES Figure 1: Antagonistic relationship between mainstream and Islamic development discourses ..............................................................................................................