TY - JOUR AU - Bacha, Obiyathulla Ismath AU - Mirakhor, Abbas AU - Askari, Hossein PY - 2015/10/27 Y2 - 2024/03/29 TI - Risk Sharing in Corporate and Public Finance: The Contribution of Islamic Finance JF - PSL Quarterly Review JA - PSL QR VL - 68 IS - 274 SE - Articles DO - 10.13133/2037-3643/13168 UR - https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/13168 SP - AB - <p align="JUSTIFY"><span style="font-family: Times, serif;"><span style="font-size: small;"><span style="font-family: Cambria, serif;"><span style="font-size: medium;"><span lang="en-GB">Financial crises have become a recurring problem for modern economies with increasingly detrimental fallouts. </span></span></span><span style="color: #0e0e0e;"><span style="font-family: Cambria, serif;"><span style="font-size: medium;"><span lang="en-GB">Risk-sharing finance (RSF) </span></span></span></span><span style="font-family: Cambria, serif;"><span style="font-size: medium;"><span lang="en-GB">contracts may be the best instrument for addressing the problem and its fallout, and in particular</span></span></span><span style="color: #0e0e0e;"><span style="font-family: Cambria, serif;"><span style="font-size: medium;"><span lang="en-GB"> the risk-sharing principles of Islamic finance offer a potential alternative. This paper offers some preliminary thoughts on the design and implementation of RSF for both private and public sector funding, for revenue and non-revenue generating projects.  It is argued that such form of financing avoids the leverage of conventional debt, minimizes the costs of dilution, reduces macroeconomic vulnerability, and enhances financial inclusion. It also has the potential to be a less risky alternative for developing countries to finance public spending and economic growth. </span></span></span></span></span></span></p><p lang="en-GB" align="JUSTIFY"> </p><p><strong>JEL Classifications:</strong> G32, P43, O16</p> ER -