Barbers from the Swat Valley have more freedom in IDP camps than they did in their home towns under Taliban rule which found shaving off beards un-Islamic. Photo: Elias Pirasteh (flickr)

Barbers from the Swat Valley were forbidden to shave off the beards of their customers under Taliban rule, which condemned the practice as "un-Islamic." Since the Taliban took over the area, the Pakistani army has been trying to regain control over their territory. The resulting violence has made the beautiful and serene area a dangerous place to live. BBC News spoke to some of the men who fled the area, and are now living and working in camps for internally displaced people.

One of the barbers interviewed tells the BBC:

The Taliban threatened to attack the barber shops and their houses if they kept shaving customers' beards. Before the Taliban came along with their restrictions I used to do 15 to 20 shaves a day so as soon as they took over I saw my income plummet.

Most of these men want to return to their homes but also want the freedom to practice their livelihoods without the constant threat of violence. For now, the camps have become their home and source of income.

Read more about the Swat valley in Global Envision's post: The Economic Fallout From Pakistan's Taliban Troubles.

ATMs Abiding by Islam. Photo: トリプ tripu (flickr)

In Iraq and need cash? It's not easy. All banking has to be done in person at the branch where you hold an account, your salary is paid in cash — not check — and a Visa card won't buy you anything at the market. It's almost not worth graduating from your childhood piggy bank.

But this month, people in Baghdad can begin to say goodbye to this antiquated and unwieldy system— thanks to banking monolith Rafidain's introduction of Iraq's first electronic clearing system.

This is good news for Iraqis because now they can have their paychecks directly deposited into their accounts instead of stashing their money at home. By September they will be able to choose from ATMs at 147 branch banks scattered around Baghdad — and count on them to be functional.

This step towards a modern banking system could help bring prosperity to Iraq. As the Economist noted optimistically, "Iraq’s overdue conversion to fully electronic banking should help woo investors from abroad and pep up the economy as a whole."

But some are worried this ATM hustle-and-bustle means a transition to modern finance that Iraq isn't ready to support. First, the use of ATMs and electronic banking may lead to other aspects of Western banking, such as loans and credit cards. This could prove problematic because Shariah (Islamic law) prohibits credit and "non-benevolent" loans that charge interest.

This isn't a new obstacle: Other developing Muslim countries have faced the transition to a modern financial system while still following Islamic banking standards. This form of finance is based on a common prudence among banks, lenders and individuals— because they all share the risks of investment, and divide any profits. It has already been successful in many Muslim countries — ranging from the strict model followed in Qatar, to a more relaxed one, as in Malaysia. It is even being implemented in secular countries with a Muslim minority population like the U.K., and in Western financial hubs like Switzerland.

What's more, some say the Islamic model is more insulated from the recent global financial crisis than conventional banking systems. This is because the theological framework of the system prevents excessive risk-taking — such as the use of unstable financial instruments like derivatives. Majed al-Refaie, the head of an Islamic investment bank in Bahrain, explains in the Washington Post:

The beauty of Islamic banking and the reason it can be used as a replacement for the current market is that you only promise what you own. Islamic banks are not protected if the economy goes down — they suffer — but you don't lose your shirt.

For these reasons, some say Iraq's potential for financial growth through Islamic banking is high, provided the country is stable enough to support stimulation.

But even Islamic finance is not recession-proof, as economists noted at the recent Islamic Banking and Finance Summit in Dubai. This model also requires stability and responsible management for success — which Iraq may not be ready for. Islamic finance may not be the best answer for impoverished Iraqis either: It is more difficult for poor people to get loans under this system than conventional ones. This is because borrowers need a higher income and more collateral to meet the stringent lending rules set by Islamic banks.

Opting to go the conventional banking route, on the other hand, could create another pitfall for Iraqis: credit cards — and more specifically, credit card debt. Ballooning credit card debt can easily lead to the entrenchment of poverty, not its alleviation.

The potential downfalls of either financial system — Islamic or conventional — could pose problems as Iraq modernizes. But for now, at least Iraqis can finally ditch those piggy banks and go to a working ATM instead.

Ningxia's halal food industry is worth nearly $700 million a year. Photo: Aaron D. Feen (Flickr)

Local food producers in China's Muslim-dominated Ningxia autonomous region want to supply food to the 1.3 billion Muslims in the world.

Many Muslims adhere to Halal dietary restrictions, which requires food be processed and prepared according to Islamic law. Globally, it's a $2.1 trillion industry.

Ningxia, located in northwest China, is the country's third-poorest province. One-third of its six million inhabitants are Hui Muslims. Suppliers there hope to attract Muslim buyers from the Middle East and Asia to expand what is already a nearly $700 million industry locally. (Currently less than 3 percent of its halal output is sold abroad.)

Last month, local authorities organized the Muslim Food Festival and also recently held the third annual International Halal Food and Muslim Commodities Trade Fair.

China restricts Muslims to government-sanctioned and registered places of worship, and would presumably be anxious about the rise of an industry firmly tied to religious identity. But Ningxia religious leaders say for the state, economic growth appears to trump faith-related concerns.

"Stability used to be the top priority here, but now it is development," says Ma Ping of the Institute of the Hui and Islam in Ningxia. "What the government wants most is money."

And the financial prospects for Ningxia's halal food industry are already rising. Local authorities announced plans last week to launch air cargo charters that will help export food to Kuala Lumpur, Bangkok and Dubai beginning next year.