The economic effects of social solidarity in Islam: The Karz-i Hasan model – The example of Bingöl

This study aims to explore the understanding of social solidarity in Islam, which holds a significant place within the religion, through the lens of the karz-ı hasen model, and to reveal its socio-economic impacts. The focus of the thesis is to seek answers to questions such as how karz-ı hasen, which can be defined as an interest-free lending practice, is implemented at the local level and how it contributes to social solidarity mechanisms. Within this framework, Bingöl, a province located in eastern Turkey, has been selected as a concrete example where both modern and traditional forms of the model are still actively practiced. The research adopts a qualitative approach, utilizing semi-structured interviews as the data collection method. Through interviews conducted with participants from different socio-economic backgrounds, the perceptions of the local population regarding karz-ı hasen, its implementation methods, the challenges faced, and its effects on individuals' economic lives have been analyzed. The data obtained has been examined using thematic analysis, with meaningful themes and codes created based on the participants' statements. As a result of the study, it has been observed that karz-ı hasen is not only a tool for lending money but also a form of social relationship based on solidarity, trust, and mutual responsibility. Additionally, it has been found that these practices have effects that reduce social exclusion, mitigate economic vulnerabilities, and strengthen social cohesion. In this regard, the thesis demonstrates that the ethical-based approaches of Islamic economics are still relevant and functional for modern societies; it also emphasizes the need to reassess the karz-ı hasen model, especially in the context of promoting social justice and reducing economic inequalities.