Translating Down GradingIslamic Microfinance to counter current economic crisisBy: Farhat Abbas Shah.
Down grading of America’s credit rating from AAA indicates worldeconomic recession is aggravating. About ten thousand Americanindustries have shut down since2003. In equality between extremeincomes groups is soaring. All these developments emphasize the factthe interest based economic system has failed to kick start theeconomy. And this has come to the point where political and social unrest is hitting the economies like United Kingdom. All that is left is apartnership based system, which Farz Foundation has propounded.Despite all these eye opening developments, world financial bodies areclinging to market fundaments. Real Islamic financial model stillprovides a middle of the way road to fight the current economic mess.By engaging the have nots through profit and loss business mechanisma viable solution could be offer. A historic opportunity has beenprovided by the economic recession to the Islamic Banks. By makingIslamic banks a little bit flexible for profit and loss sharing great resultscould b had.The fall of credit rating of America unveiled the reality of the claimsabout offsetting economic crises by subsidizing banks and imposingcuts on various grounds in different areas of the globe. Here theimportance of “twist up economy” accentuates the implementation ata required level. Two and half billion poor people are still anopportunity to provide a strong foundation to the world economy and