The Forecast writes, “financial innovation creates new financial instruments – new kinds of mortgages, bonds, insurance, or even currencies, for example – as well as new kinds of capital.”
One in five people in the world is Muslim. Following the laws of Islam, Muslims eschew interest and avoid risk. But Muslim societies are entering into a global economy through new financial products and instruments – sukuk and takaful – that are designed to provide economic opportunities to Muslims in keeping with their faith. For a world in which many financial instruments have recently proven excessively risky, these products may also point to reforms that reach well beyond the Muslim world – and suggest new strategies for economic development worldwide.
The summary goes on to explore the following aspects of financial innovation:
- Islamic finance: innovation in Islamic financial instruments opens the global economy to the Muslim population – and also models possible financial reforms for non-Muslim investors.
- Alternative currencies: in online worlds as well as local communities, people experiment with leveraging alternative currencies to generate new wealth – and new exchanges with official currencies.
- Health as wealth: health becomes an investment and risk-management strategy for boomers as they strive to manage financial uncertainty and diminished assets.
- Health credits trading markets: personal health investments formalised and traded like personal carbon credits as people leverage health as a social good.
HFP has already seen examples of alternative currencies in play in local Transition Town economies. The concept of health credits, combined with more stable fiscal influence, is a compelling alternative to current currency markets.
Next in the series we review,”Culture: New Commons.”