1. We would like to start with your early life, academic background, and career journey. 

Comilla was where I spent the majority of my formative years of education and my early years of life. I used to study in a government primary school named Kali Bari Govt. Primary School. It was a tin-made construction, and the heat used to be unbearable during summers. My father was a clerk (finally promoted to Peskar or head clerk) at the Comilla Collectorate, where the D.C.s/ADCs offices are located. My parents were deprived of the privilege of education—my mother completed four years of schooling, and my father passed matriculation (equivalent to SSC). We had a very average lower-middle-class or proletariat lifestyle in Comilla Sadar town. I am fond of saying that those who fight for the rights of the poor never had the taste of the lives of poor people, as many of them come from affluent and educated backgrounds. I am not denying their intention of doing good to others, but their dreams of social revolution did not connect properly with those of the poor proletariat. They never lived a proletariat life. The proletariat’s struggles are quite unique. Very few could get out, and those who fight for them could grasp them properly.

I am eternally grateful to the Almighty for being able to be one of those who were able to break out of the proletariat prison. We have ten siblings (7 sons and three daughters), and I am the seventh child of our parents. We used to live in a tiny two-bedroom government quarter in Comilla town. Due to poverty and a lack of resources, my older siblings could not excel academically although they were very brilliant. By the grace of Allah, I stood first in the Junior School Scholarship in 1975 in Comilla Board, 25 days after my father passed away on November 1, 1975. The whole family fell into abject poverty, and my second brother took my father’s job so that we could stay in the government quarter. My second brother took the helm of the family, with my mother as the anchor of the whole family. My mother played a very critical role in my life. As my maternal grandfather was a high school teacher, she understood the value of education and always encouraged us to study. My mother lived with us for 18 years in the USA, and died on February 12, 2019, at the age of 90 as a Bangladesh-U.S. citizen.

By the grace of Allah, I stood first in the combined merit list of the SSC exam in 1978 from Comilla Board with a record-breaking score. That was the turning point for my family, which permeated through creating dreams and aspirations among my siblings. After the SSC results, I felt that God Almighty had a plan for me, as, despite all limitations and little help, I had been blessed with success. Growing up in an environment where power and affluence got all the love and appreciation, I just wanted to be loved as a young boy, and I realized at that tender age that it would be only through education that I would be able to be loved by others and earn a decent living. That was my motivation to be the best in my academic journey. I again topped the list in the HSC exam in the combined merit list in 1980 from the same Comilla Board.

During those times, there was a prevalent notion among lower middle-class families about choosing the professions of their children. For them, there used to be only two options: either you become a doctor or an engineer. Due to this, my family insisted that I become a doctor, so I applied and was admitted to Dhaka Medical College (K-38). But unfortunately, I never found a passion for medicine during my one-year tenure at Dhaka Medical College. I left Dhaka Medical College and got admitted to Dhaka University in the Economics department the following year. But again, I was finding it difficult to adjust to the environment, which eventually negatively affected my academics and personal life. Leaving Dhaka Medical College cast a negative impression of my family and me, especially my mother, who was criticized by our relatives and neighbors. At this juncture, I decided to leave the country and started applying to U.S. universities. Fortunately, I earned admission with a full scholarship to study Physics at Gustavus Adolphus College and started my U.S. journey on January 27, 1983. That was the turning point in my life. Looking back on that, I feel I would be nobody if that opportunity did not knock on my door. Allah has guided me this way. I had already lost two and a half years by the time I left for the USA, so my next determination was to gain back those lost years. I studied in Bangla medium during high school—the system was converted to Bangla medium during my time but later reverted to English medium, so you can imagine my English was not on par with those who studied in English medium or British O/A levels. I have seen many genius and brilliant students who languished without opportunities and proper guidance, but Allah has helped me, guided me, and blessed me.

At Gustavus Adolphus College, I changed my subject again because I did not like or enjoy spending time in Physics labs. I was looking for a science subject without any lab work, so I decided to double major in Economics and Mathematics. I graduated with a double major in 2 and a half years from Gustavus in May 1985. Then I did my M.A. in Economics from the University of Nebraska-Lincoln in May 1987 and my Ph.D. in Finance from the same university in July 1990. I completed all three degrees (B.A., M.A., and Ph.D.) in 7.5 years and started my academic career as an Assistant Professor of Finance at the University of New Orleans in August 1990 at the age of 27.

I have always wanted to be a teacher. To me, it is the profession that most allows to bring about a transformation in a student’s life. It has been 32 years as a professor, and I have been trying to live by that motto. I am glad that I established myself as a prominent researcher and academician in the United States, where the standards are significantly higher than in many developing countries.

One more thing about my nuclear family. My elder brother and sister passed away. I have brought the rest of my family members to the USA (a total of 23 family members). My older brother (sibling number 5) earned a Ph.D. in Economics from the USA and is a professor now. Two younger brothers (sibling numbers 8 and 9) are engineers (with B.S. and M.S. from U.S. universities) and work for Apple and data management companies. My youngest sister (sibling number 10), an OBGYN physician and Assistant Professor at Chittagong Medical College, and her husband, a General Surgeon, Professor of Surgery at Comilla Medical College, opted to work in Bangladesh after getting their green cards.

As for my own family, I am married with two adult children. My wife, Dr. Tahmina Hassan, a board-certified internist and geriatrician (Graduate of Dhaka Medical College, Batch K-45), is the chief of CLC at Veterans Memorial Hospital in New Orleans, Louisiana, USA. Our daughter, Aniqa Tahmina Hassan, earned her B.A. and M.S. from Harvard University (Neurobiology and Global Health Systems—2016 and 2020, respectively) and works as Director of Partnerships at Archera, a fintech start-up company, in Seattle, Washington. Our son, Arman Kabir Hassan, earned his B.A. in Economics and Computer Science from Harvard University in 2018 and is now a private equity analyst at Audax Asset Management company in Boston, Massachusetts. Arman’s wife, Sera Choudhury (B.A. in Economics from Virginia Commonwealth University, Virginia), is the Vice-President of Sales at MineralTree, Inc. Arman will start his MBA in the fall of 2023 at the Wharton Business School of the University of Pennsylvania.

2. Being a profound economist, what made you interested in choosing your expertise in Islamic Finance and Economy? 

There was an incident in 1996 that added a new dimension to my career. As “Riba” is prohibited in Islam, being a practicing Muslim, I often used to feel guilty teaching it to the students. But since it was an integral part of the curriculum for the B.S. program in Finance, I did not have any other option. Therefore, I started learning about Islamic Finance only to have internal peace of mind initially. I gradually started collecting resources and learning Islamic Finance and Banking myself without formal education in this subject. This passion has led to getting more profound insights into these subjects. In 1996 I had my first trip to present a paper in Malaysia and started traveling to learn Islamic Finance from many scholars from many parts of the world, which ultimately honed my knowledge and understanding of the field of Islamic Finance.

You will be surprised that many who taught me Islamic Finance were non-Muslims. Many of them had detailed knowledge and insights about the universal value proposition in Islamic sciences, which helped me enhance my knowledge. These non-Muslim scholars were drawn to it because it offers a viable alternative economic solution to the woes that are now inflicting the world. For me, I was looking for a convergence point where people of all faiths and religious traditions find a common goal—a decent and equitable economic life that can be drawn from various teachings in the Muslim Holy Book and the Prophetic traditions. That economic and financial system was deeply enshrined in the Medina Declaration of our Prophet Muhammad (S.M.).

It has been decades of learning, and I am still learning from my co-authors, students, and other scholars in the field. I research two aspects—Conventional Finance and Islamic Finance. Islamic Finance is something that gives me a feeling of fulfillment. I feel that I am accountable for spreading it to the masses. Despite our differences, I believe we are all created the same way, and despite the differences in our beliefs, we must converge on an economic system beneficial for everyone. Every religion promotes equality, and I feel like this is something through which I could bring everyone together. The country I currently reside in has a “not so good” perception regarding Muslims, and I want to play a part in changing the perception and stereotypes. Furthermore, I want to attract more people to Islamic Finance and create a better community. I have concluded my journey as an academician recently and started exploring different facets of my career.

3. Shed some light on your research work that got you multiple prestigious awards and recognition in the global arena. 

My initial works, which received numerous citations worldwide, were based on financial development and economic growth. My research is empirical and data-driven, focusing on several aspects of financial development. Gradually I have done several types of research on Islamic Finance as well. My core research interests cover economic development, corporate governance, banking, political Finance, Bangladesh studies, and many more. I have written over 30 books covering many aspects of Finance, including Islamic Finance and my own perspectives. For my significant contributions to Islamic Banking and Finance, I was awarded the Islamic Development Bank Prize (IsDB) in 2016. 

Conducting research and publishing numerous publications and research papers on Islamic Banking and Finance in top-ranked refereed academic journals, I am honored to be the most cited researcher and author of the most articles in Islamic Finance. As of now, I have had over 300 collaborations and co-authorships related to Islamic finance, including books, research papers, working papers, conference papers, workshops, and seminars with prominent and junior scholars of Islamic finance from more than 30 countries in both Muslim and non-Muslim countries.

To establish Islamic Finance as a separate discipline, I co-edited three pioneering textbooks about Islamic finance, along with twenty-one scholarly books and over 75 book chapters. I have put forth my efforts to provide academia and practitioners with books on critical writing, Islamic Banking, Islamic Economics, Islamic capital markets, Islamic entrepreneurship, and a comprehensive account of empirical research in the field of Islamic Banking and Finance. With all these efforts I have put my undivided efforts to work as a bridge between the East and West in making Islamic finance an acceptable academic discipline.

I always intended to spread all the knowledge I have acquired in my life to the coming generation. Therefore, I continuously worked towards promoting the long-term viability of Islamic Finance by training the next generation of Islamic scholars. Until now, I have helped 70 students complete their Ph.D.s, many of them currently holding important positions in distinguished national and international organizations. Of these, 30 are related to Islamic Finance. One of my doctoral advisees, Dr. Adel AlSharkas, is now the Governor of the Central Bank of Jordan. 

This academic journey has also allowed me to present at conferences, give invited lectures, and attend workshops as a keynote speaker, guest speaker, and conference chair at more than 500 international events. I have earned 37 best paper awards and delivered more than 300 workshops and seminars on Islamic Banking and Finance. Through these presentations, speeches, and lectures, I have provided both conceptual and contemporary perspectives on Islamic finance to an extensive global audience. I have been working to highlight the true spirit of Islamic Finance and enlighten the audience/participants regarding the mechanisms and rationality of Islamic Finance. 

In this pursuit, I have also contributed to the Centre for Zakat Management (CZM), an organization aiming to motivate Zakat-eligible Muslims to distribute their Zakatable assets in a Shariah-compliant manner and change the standard of living of those in abject poverty through providing education, healthcare services, vocational training, and livelihood assistance to affected households. I have also worked on developing the Islami Bank Bangladesh Limited’s (IBBL) Rural Development Scheme (RDS). Under the RDS, branches of Islamic banks are encouraged to invest their deposits in areas where social benefits, not profits, are maximized. While many Islamic scholars were skeptical about the applicability of RDS at its inception, today it is considered a great success story and has become a huge institution, with many other Islamic organizations adopting similar schemes.

Along with all these endeavors I have also served as a consultant for various international institutions such as the World Bank (WB), International Monetary Fund (IMF), Islamic Development Bank (IsDB), African Development Bank, USAID, Federal Reserve Bank of the U.S., and the Organization of Islamic Cooperation (OIC). I am also relentlessly advocating for enacting an Islamic banking law in Bangladesh, given that 30% of the financial industry in Bangladesh is now Islamic.

Most recently, I visited Saudi Arabia as a Senior Fulbright Scholar for a month. During this visit, I delivered lectures and participated in dialogues on various issues such as the digital economy and Islamic Finance. I am also currently working on survey-based research on the role of Islamic Finance in promoting SMEs in Saudi Arabia.

4. Tell us a little about your views and findings on the importance of Islamic Finance and banking in the modern world. 

You see, those who initiated Islamic Finance were ideologically driven. It initially started in the 1960s and flourished during the 1970s. Many established systems collapsed during that time, and it was evident that we needed to go back to our roots to redefine ourselves. They started with this vision, but they failed when it came to the operational model (modus operandi) of Islamic finance. Regarding Islamic Finance, over 90% of its operations are concentrated on only Islamic banking. But Islamic Banking has a limitation on how far it can go to positively impact society and balance equity and distribution. It is the same case for conventional banking. So, it is impossible to achieve Islamic Finance’s essence through Islamic Banking only. Therefore, it is essential to move towards a non-banking financial mode. Entering into partnerships and becoming venture capitalists are excellent ways to find a balance, which is impossible with conventional and Islamic banking systems alone. There is also a concept of Islamic Social Finance, Zakat, for instance. I have researched extensively on this topic and evaluated how it can benefit us significantly. So, in my view, the combination of Islamic commercial Finance such as banking, capital markets, and insurance, and Islamic Social Finance such as Zakat, Sadaqah, Waqf, and Qard-ul-hasan, can create a system that can benefit the community optimally. For instance, many fresh graduates having many skill sets need to secure a job due to the scarcity of vacant positions in the public and private sectors. But suppose wealthy people come forward by putting 10% of their wealth in risk capital (venture). In that case, young people get the capital to implement their ideas and start their investments. It might have some risks involved, but once it takes off, there is no doubt that the returns are significant. The western world is progressing because it emphasizes innovation and creativity. But unfortunately, our traditional financial mechanism does not support innovation, so we must move toward a non-banking financial mode. The affluent segment of the community must engage in venture capital financing and help the youth in their start-up ventures. 

5. Share some of the emerging economic aspects of Bangladesh. According to you, what are the key factors that could play an essential role in developing our Economy?

One thing I have always mentioned is that relying only on the market economy is not ideal in Islam. Capitalism is not bad, but it must be aligned with the human spirit of doing good and preventing harm to others. By fulfilling this, we will not have an exploitative market, and I call this type of market system “spiritual capitalism”. It is not even appropriate from our religious perspectives, but most in our country hardly consider it. Bangladesh is still struggling financially, and the poverty rate again spiked to 40% after Covid. To improve any society, we need to progress in 3 core aspects: ensuring macro financial balance, equitable distribution of wealth, and a good safety net for the have-nots. Ensuring equitable growth throughout society is crucial. The Government needs to supervise all sectors and help them to grow equally. Most importantly, it is critical to stop corruption in every possible aspect.

I often say that even a financially challenged country like Bangladesh can change its status within ten years if Zakat is collected effectively and distributed productively. We would not need loans from other countries, the IMF, or the World Bank.

We have a growing economy, but tax collection is significantly decreasing. This is happening because there is an underground economy with increasing growth in black money, from which the government is deprived of revenue collections. If the government would recognize Zakat and make policies by decreeing that people who give Zakat will not have to pay taxes, more people would be interested in giving Zakat.

To summarize my answer, I think if Bangladesh can create a labor-intensive and interest-free economy, all people in this country will be benefited regardless of their religion, ethnicity, or economic class. This can be done according to our national principles. Islamic financial and economic principles can root out poverty and injustice in our society. Combining Islamic commercial Finance with Social Finance can bring the best of everything economic to Bangladesh. If poverty and the quality of poor people’s lives in a country are improved, then most social problems like social unrest, child and women abuse, drug addiction, and tensions among people will be minimized.

6. There is anticipation that Bangladesh is likely to face an economic recession in the coming years. How do you think the country can make the best use of its existing resources and opportunities to deal with the challenges? 

First, this is a global phenomenon caused due to the pandemic followed by the recently ongoing Russian-Ukraine war. It is commendable that our government has played a timely and pragmatic role in tackling the crisis and curbing the damage during these trying times. But there are many questions arising regarding the foreign reserves of our country. I believe it is essential for the government and the people involved to remain transparent while handling this crisis. Political influences persist all over the world, but they should not be done at the expense of a country’s national interest by harming our economy and sovereignty. I do not know whether the recent allegations about the banking crisis in Bangladesh are authentic, as there is no relevant data to back up these claims. I believe the authorities will be transparent with all data to inform the public about the current situation and the steps taken to tackle any looming crisis. The government must think through the harmonization of interest rates and exchange rates and revenue collection and stop corruption at all levels to bring macro-financial balance to the country.

Having said that, it is not the first time that Bangladesh is facing such a crisis. With a population of 171 million and such limited resources, it is a great achievement for Bangladesh that we do not face famine like many African countries. I believe that the resilience and adaptability that Bangladesh has learned throughout the 50 years of our existence will help tackle the current and looming crisis effectively. I would like the readers to look at several newspaper articles that I wrote on the current economic and food crisis and economic philosophies published in various news portals and publications. 

7. Bangladesh has an excellent track record in poverty reduction and growth and development, which leads us towards a Developing Country status, up from LDC status. What are the new approaches you recommend which can enable us to retain our position with a strong response in this global economic crisis?

Currently, we are living in such a challenging time, and there is a dire need to preserve peoples’ rights and nourish good governance. A well-defined democratic system needs to be implemented if we are to retain our status and improve our image as a democratic country in the world. The election must be fair and transparent regardless of who comes into power. The integrity and functioning of all national institutions must be maintained. Corruption must be rooted out of our country. 

The recent infrastructure development within the country has been phenomenal, but there is still room for massive improvement. The number of investments and the amount of financial assistance we receive are enormous. Still, the mismanagement of funds hampers growth on a large scale. We should not depend on just a handful of countries but rather collaborate with other countries as our development partners. We need to gain and improve our technological know-how and build up expertise within our country so that we can be self-dependent rather than depending on others. 

The economic policy of Turkey can be an example for us, and to a degree, the Bangladesh Bank is following a policy like this. Instead of raising interest rates to curb inflation, Turkey has reduced interest rates to promote investment, create employment, generate economic growth, and bring external balance by improving its current account deficit. And this policy is working in Turkey, where the economic growth has been in the 7-8% range during the pandemic era. The traditional approach of fighting inflation has always led to recession in the West, so we may try a heterodox economic and financial policy like Turkey in our own country.

8. What advice would you give to the young generation who aspire to pursue a career as a researcher, and where do you see our country heading in the next ten years?

As an academician, in my last 32 years, there has always been a Bangladeshi student who did his/her Ph.D. under my guidance. I have produced more Bangladeshi Ph.Ds in the Finance discipline than anyone else on a per capita basis in any U.S. university. I find that the quality of university education (and primary and secondary) is falling, which is very alarming for the future of Bangladesh.

There are many private universities in Bangladesh, and most need to ensure quality education. Only a few private universities try to maintain the standard, but the majority has a long way to go. Public universities are drowning in student politics. The students I used to get from Bangladesh 20 years ago are more capable than the ones I get now. Many students told me that they waste their time by lobbying the faculty and others to earn good grades, and later become faculty members. The process of becoming a university teacher is no longer only based on merit—it has become more of a political process than an academic one.

The students would have been better served spending more time studying than wasting time pleasing the faculty, seniors, or political leaders. To attain scholarships or higher study opportunities, they must maintain some political relationships to get them what they want. If instead, they were able to devote their time fully to their studies, they would have learned more and been better prepared.

We educators must bear part of this responsibility. We have much to learn from our neighboring countries. Our neighbors do not engage students in national politics. Instead, they encourage them to have educational and leadership roles by participating and honing their intellectual and leadership abilities through various student-led organizations on campus.

There are only a few names of Bangladesh’s universities in the global top 1000 list. In the past, we produced Nobel Laureates and world-renowned scientists from our public universities, including the so-called Oxford of the East, Dhaka University. Students who attain a Golden GPA in SSC or HSC cannot even qualify for admission tests for university admission. We are responsible for this dire situation of educational quality at all levels of the education system in Bangladesh. Bangladesh has revised the educational goals and policies and modus operandi for improving our education system, and I believe if adequately implemented with dedication and honesty from our academic community, we will not only regain but will do better than our past. We should ensure that school textbooks maintain facts and preserve and promote our cultural and religious heritage. There must be enough resources—both educational and financial—for access to education for all students in Bangladesh. Money should never be a hindrance for any student at any level to access quality education.

In the USA and many other parts of the world, money is never a barrier for any student who wants to study—all they need is determination and perseverance. Our leaders need to realize this and come forward steadfastly to develop the education sector and support our students. 

Most Bangladeshi families are unable to afford private university cost for their children. Private universities must provide more financial and academic assistance to needy students. The entire higher education of both public and private must be harmonized in terms of curricula and quality standards. These standards probably already exist, so they must now be implemented. Digital education should be emphasized, a lesson we learned during the pandemic. Bangladesh lies in a disaster-prone area, so access to the internet at low prices is a must. The internet has come as a huge blessing for many. Students do not have to depend on books or classes; instead, they can seek knowledge online through various platforms.

It is our responsibility to understand their needs and guide the students on the right path. Our community should come forward to address the issue and contribute accordingly to solving it. We Muslims should give Zakat properly to the ones in need and initiate Waqf for their betterment. Islamic Social Finance (Zakat, Sadaqa, interest-free loans, and Islamic microfinance) can bring a permanent positive change to all facets of lives in Bangladesh.