Towards an Extended Economic Life of the Destitute People with HIV/AIDS: An Islamic Microfinance Approach
- Author:
Khalid Ghailan
- Publication Type:Journal Article
- Keywords:
economic life;
HIV/AIDS;
Islamic microfinance
- From:Malaysian Journal of Public Health Medicine
2012;12(Supplement 1):16-16
- CountryMalaysia
- Language:English
-
Abstract:
HIV/AIDS impacts negatively on the individual as well as household economy. The conventional financial system considers the destitute people with HIV/AIDS are highly risky borrowers. It is not only because of their low economic-standing but also for less or no productivity, rapid health-erosion and shorter life-span. That is why they are indisposed to get access to the conventional financial system.
This paper aims to develop an operational model of Islamic Microfinance (IsMF) that can extend financial privileges to the poor HIV/AIDS patients in order to illustrate their productive life by means of economic activities.
This model has been drawn based on the previous literature and our study on the economic impact of HIV/AIDS on the patients and their households in Malaysia.
This model suggests “family-based financing” instead of “solidarity and woman-only approach” of the conventional Microfinance System. Simultaneously it proposes the mechanism of refinancing or loan-transformation to charity, where the general practice of the contemporary Microfinance is “financing based on repayment” approach. The viability of this model does not assert the operational self-sufficiency (OSS) or profitability of the Islamic Microfinance Institute (IsMFI); rather it emphasizes on enhancing the economic-performances of the poor people with HIV/AIDS. The implementation of this model may help to reduce productivity-loss and stigma while simultaneously increase human security of the HIV/AIDS patients and their families and increase adherence to treatment. The study can introduce a new product in the context of IsMF and be equipped as a part of the Corporate Social Responsibility (CSR) of the financial intermediaries.
