ARTICLE1

M.M.AKBAR The Roots of Financial Crisis, An Islamic Analysis

BANGLADESH-BORN AMARTYA SEN wrote The Argumentative Indian in !!"# $even %ear$ a&ter winning the No'(e )ri*e in E+onomi+$, Hi$ -ur-o$e $eem$ to have 'een to +ondemn the +ommuna( vio(en+e &ue(ed '% the new Hindu +u(tura( +hauvini$m a$ &oreign to Indian hi$tor% and identit%# and to advo+ate &or a return to native tradition$ o& inte((e+tua( -(ura(i$m and -u'(i+ de'ate, Yet man% o& hi$ argument$ remain thorough(% re(evant in our +ontem-orar% wor(d# India and e($ewhere, He +ontend$# &or in$tan+e# that the g(o'a( re-emergen+e o& the va(ue o& .doing one/$ dut%0 1 an ethi+ that ought to 'e re+ogni*ed 1 +annot 'e '(ind to it$ own o'viou$ out+ome$, )riorit% mu$t 'e given to the mora( +on$e2uen+e$ that ma% &o((ow &rom

+arr%ing out the re$-on$i'i(itie$ that we &ee( or that $o+iet% te(($ u$ are our .3u$t0 +ommuna( o'(igation$, Sen +on+(ude$ that the virtue o& an% e+onomi+ argument or -rin+i-(e i$ rea((% determined '% it$ mora( merit# that i$# '% it$ u(timate +on$e2uen+e$ &or -eo-(e and +reation, He warn$ u$# a$ we(( 4(i5e none 'ut an hone$t e+onomi$t in our wea(th-+on$+iou$ time$ +an6 that man% &inan+ia( theorie$ that do good on -a-er ma% we(( 'e detrimenta( to $o+iet% when -ut into -ra+ti+e, M% +ontention i$ that what Sen i$ $a%ing ought to 'e e7tended to the e+onomi+ -rin+i-(e$ -ra+ti+ed '% mo$t o& the wor(d toda%, E+onomi$t$ and the re$t o& u$ $hou(d eva(uate the worth o& the$e -o(i+ie$ not e7+(u$ive(% '% their deta+hed numeri+a( a++ura+%# 'ut &ir$t and &oremo$t# '% the mora(it% o& their &undamenta( im-a+t on -eo-(e/$ (ive$, To -ut it another wa%# our e+onomi+ theorie$ and -ra+ti+e$ $hou(d 'e 3udged on the 'a$i$ o& the 2uantum $o+ia( we(&are the% generate, Do the% he(- or hurt the mo$t vu(nera'(e among u$8 Do the% &ree the +ommon man and woman or en$(ave them8 Do the% $timu(ate human integration in $o+iet% and +reation whi(e -re$erving the (i&e# (i'ert%# and individua( +hoi+e and dignit% o& man# 'ea$t# and earth8 Or do the% +orrode the $tru+ture$ o& +ommuna( (i&e and erode the natura(# de(i+ate 'a(an+e$ that God $et &or a(( thing$8 9hen we a$$e$$ genera((% a++e-ted modern e+onomie$ '% thi$ $tandard# we mu$t a++e-t that it ha$ 'een an utter &ai(ure, The mathemati+a( and $tati$ti+a( e2uation$ o& it$ +on3e+ture$ ma% a(( 'e a++urate, But their de&initive re$u(t$ have (ed to +ata$tro-hi+ $o+ia( in$ta'i(it%# egregiou$ e7-(oitation and -er$e+ution# and $u&&ering on a $+a(e $o $tee- and -erva$ive a$ to 'e at on+e un&athoma'(e %et unmi$ta5a'(e, A++ording to the date -rovided '% the e7-ert$ &rom our a&&(uent +a-ita(i$t +ountrie$# that re$u(t$ o& the a++umu(ating de't mandated '% the -re$ent e+onomi+ $%$tem i$ near(% : mi((ion dead +hi(dren in underdeve(o-ed +ountrie$ ever% %ear due to -reventa'(e $tarvation and an un+on$+iona'(e (a+5 o& -ro-er medi+a( &a+i(itie$, That/$ a'out !#!!! need(e$$ death$ o& he(-(e$$ human 'eing ever% $ing(e da%, Let/$ -ut that in emotiona( -er$-e+tive, Hundred$ o& thou$and$ o& heart$ +ome to (i&e(ong grie& over the (o$$ o& (itt(e# (oved one$ with ever% $un$et# their (ive$ inhuman(% $hattered $u+h that no $unri$e -romi$e$ the (ight, Imagine the death o& %our own +hi(d &or no other rea$on than hi$ or her (i&e i$ he(d +hea-er than $ome 'an5er/$ $i(5 tie, The $ame $%$tem i$ a($o the +u(-rit 'ehind the $ing(e greate$t -eriod de+(ine in hi$tor% o& the on(% thing it -ur-ort$ to 'e &o+u$ed on in+rea$ing )er +a-ita in+ome, Ta5e Soma(ia# &or in$tan+e# the mo$t o'viou$ nation in need o& wea(th--er--er$on ri$e, The average Soma(i/$ in+ome# a(read% $ma((# ha$ $hrun5 '% near(% a third# &rom a'out ;<=> to 3u$t ;?!! within a $-an o& @! %ear$, That/$ the ver% -eriod in whi+h the wor(d(% -hi(o$o-hie$ -romi$ed heaven on earth &or a(( -eo-(e i& we 3u$t e3e+ted God &rom the wor(d, Do we wonder# then# at the emergen+e o& -ira+% in $o e+onomi+a((% -(undered and un$u$taina'(e a +ountr% a$ Soma(ia8

The a$tounding &a+t that man% time$ more$ -eo-(e have 'een 5i((ed in the (a$t +entur% than in a(( -rior human hi$tor% +om'ined i$ the $ing(e mo$t deva$tating indi+tment o& the nature o& toda%/$ -o(iti+a(-e+onomi+ $%$tem, Nor +an thi$ 'e $tati$ti+a((% air'ru$hed awa% '% -o-u(ation argument$, 9hether -o(iti+ian$ and &inan+e men &a+e u- to it or not# we have rea+hed the termina( $tage o& modern e+onomi+$, Ho-e i$ now (o$t that the $%$tem +an +ontinue -roviding di$-ro-ortionate -ro$-erit% even to the &ra+tion o& &avored -eo-(e who (ive in the deve(o-ed nation$, An ever in+rea$ing +rime rate# an a(arming ri$e in the num'er o& &ai(ed &ami(ie$# a $urge in the num'er o& 'ed$ in -$%+hiatri+ ward$# a growing Ma&ia +u(ture# and $teede+(ine in mora( and ethi+a( va(ue$ a+ro$$ the 'oard are a(( '%-rodu+t$ o& a &inan+ia( $%$tem 1 not on(% una'(e# 'ut 1 not $tru+tured to do an%thing $u'$tantia( &or the we(&are o& the ver% $o+ietie$ that have -ro-agated it in the wor(d &or their own (o-$ided 'ene&it, I. IF WE DARED T C M!ARE

ON TO) O& the$e mounting $o+ia( ai(ment$ +ome$ the me(tdown o& the &inan+ia( mar5et$ and dreaded re+e$$ion, The (oud +rie$ o& tho$e who have (o$t their home$# 3o'$# and (u7urie$ &i(( the a(read% di$tur'ed $o+ia( air, Inve$tment e7-ert$ and e+onomi+ $+ho(ar$# ti(( re+ent(% g(oating over the a++ura+% o& their -redi+tion$ and -ro3e+tion$# now +(aim $he(( $ho+5 in our -re$ent -re+i-itou$ e+onomi+ -(unge, Mo$t $ti(( a++ount &or it a$ an un&ore$eea'(e .B(a+5 Swan Event#0 an im-ro'a'(e o++urren+e o& e7treme $o+ia( im-a+t, There i$ $ti(( (itt(e a+5now(edgement that modern -o(iti+a( and e+onomi+ materia( -hi(o$o-hie$ (ong ago merged in the intere$t o& the &ew, The arrogan+e 4or $%+o-han+%6 o& our $-e+ia(i$t$/ and authoritie$/ '(atant e7+u$e-ma5ing mere(% ma5e$ it a(( the more -ain&u((% +(ear that our +urrent g(o'a( &inan+ia( $%$tem wa$ in no wa% ever meant &or the u(timate we(&are o& it$ end vi+tim$# man5ind and the &e((ow$hi- o& +reation, The$e were mere(% it$ -rodu+tive wea(th re$ervoir$# to 'e tramme(ed# +hanne(ed# and drained, I& it i$ humanit%/$ we(&are that i$ the (egitimate +riteria &or eva(uating a humane e+onomi+$# i& it i$ the deve(o-ment o& a $o+ia( atmo$-here +ondu+ive to a +ontented and u-right $o+iet% and a hea(th% earth that i$ the (egitimate end o& e+onomi+$# then the g(o'a( wea(th $%$tem 1not mere(% -ro-ounded# 'ut 1a+tua(i*ed '% I$(am -rior to the modern materia(i$t -eriod de&inite(% $+ore$ &u(( mar5$, The main +a-ita( a$+endant $%$tem$-+ommuni$m and +a-ita(i$m# and their h%'rid $o+ia(i$m-have a(( 'een e7-o$ed a$ i((u$or%, The >==> +o((a-$e and 'rea5 u- o& the Soviet Anion and it$ a&termath ha$ -roved that the :! %ear e7-eriment o& +ommuni$m &ai(ed to -rodu+e it$ de+(ared goa($ o& $o+ia( 3u$ti+e# we(&are# and e2ua(it%, Indeed# +ommuni$t inte((e+tua($ them$e(ve$ now a&&irm that the $o+ia(i$t -rin+i-(e$ were nothing 'ut a Mar7ian uto-ia,

Ba-ita(i$m ha$ (i5ewi$e $hown it$e(& a &uti(e +ontro( over the +a-ita( human vi+e$ o& (u$t# greed# g(utton%# $(oth# wrath# env%# and -ride# Ine2ua(it%# the retreat o& +ivi(it%# and a(ienation# have in &a+t# +ome to de&ine it$ $o+ietie$# dead(% $in$ vaunted in them to the $tatu$ o& virtue$, Ba-ita(i$m ha$ not 'een a'(e to -rovide the $a&e haven it -romi$ed# now not even to tho$e who +ham-ioned it$ theorie$, It i$ here that the re(evan+e o& I$(am in the modern wor(d i$ rea&&irmedC or rather it ought to 'e '% Mu$(im$# i& we +are &or other$, A num'er o& e7am-(e$ in our hi$tor% $how that when Mu$(im$ im-(emented thi$ re(igion/$ e+onomi+ -rin+i-(e$# their $o+ia( $tru+ture$ engendered wide$-read ha--ine$$ and +ontentment among the +ommon &o(5 o& their $o+ietie$ and that o& other$-and that i$ the true mar5 o& a $u++e$$&u( e+onomi+ $trateg%, Ri+h or -oor# Mu$(im$ and non-Mu$(im$ en3o%ed in+redi'(% &u(&i((ing $-iritua(# &ami(ia(# and +ivi+ (ived in Dar a(-I$(am# a(ong with a $tandard o& $o+ia( $e+urit% that no -(ura(i$t $o+iet% $in+e ha$ re-(i+ated &or more than hand&u( o& generation$, Both em-(o%ed and em-(o%er 3oined hand$ &or the we(&are o& a((, Nation$ &rom the S+andinavian Di5ing$# to the Indian O+ean -eo-(e$# to the )a+i&i+ I$(ander$# to the Su' Saharan A&ri+an traded &ree(% and $e+ure(% under the internationa( -rote+tion$ o& an Ammah# not ne+e$$ari(% -o(iti+a((% uni&ied# 'ut with im-ortant overar+hing -rin+i-(e$ that 'ound it$ -eo-(e$ together, It i$ 'e+au$e we have 'e&ore u$ the i((u$triou$ e7am-(e$ o& the$e $o+ietie$# wherein -eo-(e (ived in -ro$-erit% and tota( harmon% under the $hade o& I$(am/$ e+onomi+ $%$tem that we ought to 'e a'(e to $a% out (oud and in -u'(i+# without he$itation# that I$(am de$erve$ $eriou$ e7amination &rom the wor(d/$ e+onomi+ and $o+ia( $+ho(ar$# in (ight o& the vo(ati(e $tate o& g(o'a( $e+urit% and the dire need o& -eo-(e toda%, During the +a(i-hate o& Amar i'nu( Ehatta'# &or in$tan+e# Mu/ath i'n Fa'a( wa$ $ent to Yemen to a--ortion and di$tri'ute *a5at, 9hen he had done hi$ dut%# he returned one-third o& the +o((e+ted *a5ath to Madinah, Thi$ in&uriated Amar and he $aidG .I have $end %ou to Yemen not to +o((e+t 3i*%ah 4a -o(( ta7 on non-Mu$(im$6, I $end %ou to +o((e+t *a5ath &rom their ri+h and di$tri'ute it among their -oor,0 To thi$ Mu/ath re$-ondedG .I wou(dn/t have $end an%thing to %ou i& there were even a $ing(e de$erving -er$on (e&t here to re+eive *a5ah,0 The ver% ne7t %ear# he $end &u((% ha(& o& the +o((e+ted amount to Madinah# and in the $u'$e2uent %ear the who(e amount +o((e+ted wa$ $end to Madinah, He e7-(ained the $ituation to Amar i'nu( Ehatta' $a%ingG .There# i +ou(d not &ind a $ing(e -er$on who de$erved to 'e -aid an%thing,0 A $imi(ar $ituation -revai(ed during the time o& Amar i'n A'du( A*i*# the +e(e'rated Ama%%ad Ba(i-h# o&ten +a((ed the Hi&th Righteou$ Ba(i-h, 9ithin the $hort -eriod o& I! month$# he tran$&ormed hi$ &ar &(ung (and$ o& governan+e# $tret+hing &rom the $hore$ o& the At(anti+ to the Ste--e$ o& the Bau+u$e$# into dominion that were one to de$+ri'e a$ having no -er$on de$erving *a5ah# on wou(d nearer the truth than not, Thi$ i$

another in$tan+e o& a $tate genuine(% o-erating &or the we(&are o& the +ommon -eo-(e 'e+au$e o& it$ &a$tidiou$ +on+ern with im-(ementing the -rin+i-(e$ o& wea(th# it$ u$e$# and di$tri'ution# a$ I$(am -re$+ri'e$, Thi$ government &or the +ommonwea( o& the -eo-(e, Su+h o++urren+e$ do not ha--en '% a++ident, The% ta5e governan+e e$ta'(i$hed on the &irm &oundation$ o& divine(% revea(ed -rin+i-(e$ with meti+u(ou$ tran$-aren+% and a++ounta'i(it%, In &a+t# the )ro-het# $a((a((ahu a(a%he wa $a((am# -ro-he$ied the e$ta'(i$hment o& $u+h Mu$(im $tate$ &un+tioning in 'eha(& o& the -eo-(e '% wa% o& the -ra+ti+a( a--(i+ation o& I$(ami+ (aw$, Harithah i'n 9ah' a(-Ehu*a/i narrated that heard the )ro-het Muhammed# $a((a((ahu a(a%he wa $a((am# $a%G .O -eo-(eJ )a% *a5ah Kwhi(e %ou have the +han+eL# &or a time $ha((# indeed# +ome when one wi(( +arr% hi$ *a5ah &rom -(a+e to -(a+e and &ind none to ta5e it, 9homever he $ha(( re2ue$t to ta5e it wi(( re-(%G MHad %ou 'rought it %e$terda%# I wou(d have ta5en it, But toda%# I am not in need o& it/0 4Bu5hari6, A $ituation in whi+h there i$ no one to re+eive *a5ah doe$ not $igni&% that -eo-(e have no $u&&ering or hard$hi-# Rather it en$ue$ &rom a genera(i*ed +ondition in whi+h a(( $u+h -ro'(em$ are $o(ved $ati$&a+tori(% within the $%$tem it$e(&, Our e7am-(e$ e7-re$$ thi$, The% are +ir+um$tan+e$ in whi+h a(( +ommunit% mem'er$ attained $e(&-$u&&i+ien+% in their &inan+ia( a$-e+t$# in a++ordan+e with the a(tered out(oo5 o& +ivi( $o+iet% and the genuine need$ o& +ontented (i&e, There were em-(o%er$# (a'orer$# ri+h and -oor -eo-(e, But the di$-aritie$ did not (ead to ma3or &orm$ o& e7-(oitation and o--re$$ion, The% 'ui(t a we(&are $tate# in the 'e$t $en$e o& thi$ now mu+h-ma(igned term# to meet ever%one/$ need# through their +om'ined e&&ort$ and mutua( +oo-eration, Ever%one in the $o+iet% $u++eeded in attaining $e(& $u&&i+ien+% without de-ending on the nation to $hare an% o& hi$ or her 'urden$, It i$ in$tru+tive to remind that thi$ mean$ de't wa$ e(iminated among the Yemeni$ in three %ear$# and among the -eo-(e under the ru(e o& Amar i'n A'du( A*i* in 3u$t I! month$, And (e$t an%one $u$-e+t that -eo-(e $u++um'ed to a'norma( $tate$ o& a$+eti+i$m# 5now that under the (atter# ever% -oor# unwed %oung man wa$ given mahr, the 'ride/$ dower -a%ment# to marr%# Ever% &armer wa$ o&&ered intere$t-&ree# (ong-term (oan$ to im-rove hi$ (and, And non-Mu$(im$ were given $-e+ia( &unding e7+(u$ive to them $o that the% wou(d re+ogni*e their $a+red worth and -re$erved -(a+e in the e%e$ o& the Shari/ah, I& we agree with Amart%a Sen# among a growing +adre o& e+onomi+ and $o+ia( thin5er$# that the rea( %ard$ti+5 '% whi+h an e+onomi+ $%$tem i$ to 'e mea$ured in it$ a'i(it% to +reate an environment in whi+h a(( +iti*en$ attain $ati$&a+tion and &u(&i((ment# then we $hou(d (earn thorough(% a'out that divine(% ordained $%$tem whi+h ha$ 'een hi$tori+a((% -roven to 'e $u++e$$&u( in thi$, 9e $hou(d# moreover# thin5 dee-(% o& how tho$e -rin+i-(e$ +an 'e -ut into -ra+ti+a( u$e &or the 'etterment and we(&are o& human5ind, An(e$$ the vi$ionarie$# inte((e+tua($ and $tate$men o& the wor(d di$-(a% the to(eran+e and (i'era(i$m to a++e-t thi$ truth and re+ogni*e the univer$a(it% o& the$e divine

-rin+i-(e$ o& wea(th# there $ha(( 'e no end to the e7i$ting ma(ignan+% o& the &inan+ia( mar5et$, An(e$$ the wor(d move$ in thi$ dire+tion 1 the dire+tion o& divine 3u$ti+e univer$a((% a--(ied 1 there $ha(( never +ome into e7i$ten+e a $o+iet% that tru(% a+t$ and inure$ to the 'ene&it o& a(( it$ -eo-(e, II. IT I" # T T$E E%E" B&T T$E $EART" T$AT ' BLI#D

THE MEETING OH the G- ! (eader$ a$ the Summit he(d in 9a$hington Novem'er >@->"# !!<# head(ined a$ Financial Markets and the World Economy, attem-ted to di$+u$$ the root +au$e$ &or the emergen+% o& the $eriou$ +ha((enge$ to the wor(d e+onom% and &inan+ia( mar5et$, The (eader$ endeavored to itemi*e the$e under(%ing rea$on$ &or the e+onomi+ -(ague threatening the wor(d, Here/$ +on+(u$ionG .During a -eriod o& $trong g(o'a( growth# growing +a-ita( &(ow$# and -ro(onged $ta'i(it% ear(ier thi$ de+ade# mar5et -arti+i-ant$ $ought higher %ie(d$ without an ade2uate a--re+iation o& the ri$5 and &ai(ed to e7er+i$e -ro-er due di(igen+e, )o(i+%-ma5er$# regu(ator$ and $u-ervi$or$# in $ome advan+ed +ountrie$# did not ade2uate(% a--re+iate and addre$$ the ri$5$ 'ui(ding u- in &inan+ia( mar5et$# 5ee- -a+e with &inan+ia( innovation# or ta5e into a++ount the $%$temi+ rami&i+ation$ o& dome$ti+ regu(ator% a+tion$, Ma3or under(%ing &a+tor$ to the +urrent $ituation were# among other$# in+on$i$tent and in$u&&i+ient(% +oordinated e+onomi+ out+ome$,0 The Summit re$o(ved to ta5e $trong remedia( a+tion$ to -ut a ha(t to the +ri$i$, The .$trong and $igni&i+ant a+tion$0 -(anned to $timu(ate e+onomi+$ are a$ &o((ow$G )rovide (i2uidit%# $trengthen the +a-ita( o& &inan+ia( in$titution$# -rote+t $aving and de-o$it$# addre$$ regu(ator% de&i+ien+ie$# un&ree*e +redit mar5et$# and tr% to en$ure that internationa( &inan+ia( in$titution$ 4IHI$6 do -rovide +riti+a( $u--ort &or the g(o'a( e+onom%, The Foint Statement made at the end o& the meeting 'ore a not o& +autiou$ o-timi$m, But thu$ &ar the ho-e$ o& the$e (eader$ i$ not %et 'eing tran$(ated into a rea(it% that ade2uate(% re(ieve$ the -eo-(e, Time# -erha-$# wi(( te(( u$ di&&erent(%# 'ut that ho-e $eem$ a$ ri$5% a$ the &inan+ia( -ra+ti+e$ that got u$ hereG Growth o& the hou$ing 'u''(e# ea$% +redit +ondition$# $u' -rime (ending -redator% (ending# deregu(ation# in+rea$ed de't 'urden or over-(everaging# &inan+ia( innovation and +om-(e7it%# &a($e +redit rating$ &or the 'ig +or-oration$# 'oom and +o((a-$e o& the $hadow 'an5ing $%$tem# and a +ommodit% 'u''(e are the +au$e$ o& the +urrent &inan+ia( +ri$i$# a++ording to the e+onomi$t$ o& the +a-ita(i$ti+ +ountrie$, But are the$e the $%m-tom$ or the root +au$e$8 Eg%-tian e+onomi$t$ Samir Amin# Fohn Be((am% Ho$ter# Editor o& the Monthly Review 4New Yor56# and Fohn Bog(e# &ounder o& the &amed Anited State$ inve$tment management +om-an% The Danguard Grou- a(( $a% that the +urrent &inan+ia( +ri$i$ i$ mere(% a $%m-tom o& another# dee-er +ri$i$# whi+h i$ the $%$temi+ +ri$i$ o& +a-ita(i$m it$e(&,

I& not# one wonder$ wh% +a-ita(i$m e7hi'it$ +ri$e$ $o o&ten8 The Ban5er$ )ani+ o& >=!:# The Great De-re$$ion o& >= :# the B(a+5 Swan Event o& >=<: 4in+(uding the Saving$ and Loan Bri$i$ o& !!! are a(( ma3or and Loan +ri$i$6# and Dot Bom Bri$i$ o& !!! are a(( ma3or e+onomi+ +ri$e$ that hurt the wor(d e+onom%, And a(( were more or (e$$ made in the ASA# the &(ag$hi- o& +a-ita(i$m, The e+onomi$t$ and $tate$men o& the Anited State$ and other G ! nation$ are tr%ing to ana(%*e the -re$ent +ri$i$ and &ind a $o(ution to it# $tanding within the -arameter$ o& their -re$ent $%$tem, Thi$ in it$e(& +ou(d ma5e them una'(e to $ee the root +au$e$ o& the -ro'(em, An(e$$ the% $ee thing$ in a 'roader -er$-e+tive# the% wi(( not 'e a'(e to &u((% rea(i*e the origin$ o& the ma(ad% that ha$ a&&(i+ted the wor(d, It i$ here that in$ight into I$(ami+ e+onomi+ -rin+i-(e$ in re(ation to the -re$ent e+onomi+ -rin+i-(e$ in re(ation to the -re$ent e+onomi+ +ri$i$ 'e+ome$ re(evant, I$(am i$ the on(% re(igion in the wor(d that ha$ +om-rehen$ive e+onomi+ 'e(ie&$ o& it$ own, 9e have a(read% $tated that the -rin+i-(e$ e$ta'(i$hed a$ -art o& it$ wa% o& (i&e have a(read% -roved $u++e$$&u( in -ra+ti+a( rea(it%, To +(ear(% a$+ertain the root$ o& the -re$ent -ro'(em and the wa%$ to $o(ve it# we have to (earn &rom I$(am/$ two ma3or -rin+i-(e $our+e$# the Nur/an and the Sunnah, Man% Mu$(im$ e+onomi$t$ +(aim that (earning the e+onomi+ $%$tem in I$(am +an a($o he(- u$ a--re+iate# at (ea$t in -art# the an7iet% Ameri+a and the 9e$t have $hown with regard to I$(am, And thi$# i$ turn# e7-(ain$ wh% I$(am/$ &inan+ia( remed% i$ not a((owed a rea$ona'(e +han+e even in the e+onomi+a((% ai(ing Mu$(im wor(d it$e(&, The u-$hot o& thi$ antagoni$m i$ thi$G I$(am a$ an e+onomi+ $%$tem wou(d not on(% 'rea5 the gri- that +a-ita(i$t nation$ have $e+ured over the +on$idera'(e wea(th and re$our+e$ o& Mu$(im (and$# it wou(d reorder materia( mora(it% throughout the$e $o+ietie$# whi+h wou(d ne+e$$ari(% u-end the $tatu$ o& their $o+ia(--ower e(ite$, Hurther# it wou(d +au$e a ma3or re+on$ideration o& the goa($ and -ur-o$e$ o& (i&e throughout the$e $o+ietie$# whi+h wou(d (ead# inevita'(%# to ma$$ive -o(i+% and $o+ia( mode( toward the de$tin% o& the -reviou$ $%$tem it ha$ +ome to mo$t re$em'(eG The Heuda( $%$tem, Here are 3u$t a &ew thing$ that a $eriou$ +on$ideration o& revea(ed e+onomi+ mora(it% wou(d end in our +a-ita(i$t wor(dG Hir$t and &oremo$t# the unremitting avoidan+e o& a+5now(edging that there i$ a $o(e Breator$ who de+ree$ &or man and the wor(d and who i$ human5ind/$ individua( and +o((e+tive 3udge, Re(ated to thi$# it wou(d end the un$-o5en $e+u(ar moratorium on o-en(% re&(e+ting $ing(% and together what thi$ mean$ &or u$# a$ individua($ and a$ $o+ietie$, Se+ond# I$(am/$ e+onomi+ reve(ation wou(d rea$$ign greed in thi$ (i&e to it$ de$erved(% $hame&u( -(a+e in the dar5ened +orner$ o& $o+iet% and re-(a+e it with ethi+$ o& (i'era(it% and muni&i+en+e# genero$it% and +harit%, Third I$(am/$ e+onomi+ reve(ation wou(d reatta+h mora(it% to wea(th# and thi$ wou(d ne+e$$ari(% (ead to a rea$$ertion o& two re(ated ethi+$ (o$t in +a-ita(i$t $o+iet%G

Mode$t% and a'$tinen+e, And here we +ome to a $igni&i+ant +ha((enge# &or mode$t% i$ irrevo+a'(e +onne+ted to +ha$tit%# $e7ua( -ro-riet%# and the a(teration o& dre$$-a(( o& whi+h have ever%thing to do with marriage and the rea$$ertion o& &ami(ie$ right$ over that o& the $tate# and -arenta(# $-e+i&i+a((% -aterna( right$ over that o& the +or-oration, A$ &or a'$tinen+e# it em-ower$ the individua( +on$+ien+e and redu+e$ the ho(d o& other$ 4mar5eter$# &or e7am-(e6 on one# a$ we(( a$ e$ta'(i$he$ moderation a$ a -rime ethi+ in (i&e, I$(am/$ e+onomi+$ wou(d# in a heart'eat# $to- the $-read o& worth(e$$ de't note$# otherwi$e 5nown a$ mone% a$ in +urren+%# and terminate the $%$tem o& intere$t# whi+h are the twin evi( under-inning$ o& the +a-ita(i$t enter-ri$e, Truth 'e to(d# the$e two are the root +au$e o& the +ri$e$ going on in the +a-ita(i$t hemi$-here and the wor(d, III. !A!ER F R !A&!ER"

9HEN 9E SAY that the $-read o& worth(e$$ mone% and the intere$t 'a$ed $%$tem are the root +au$e$# +a-ita(i$m it$e(& 'e+ome$ the rea( de&endant# Go(d and $i(ver have 'een the +orner$tone$ o& the wor(d/$ e+onomie$ and wea(th $torage $%$tem$ right &rom the ear(ie$t time$, Even a&ter the arriva( o& the 'arter $%$tem# men u$ed to trade their mer+handi$e '% +a(+u(ating it$ worth in go(d or $i(ver, 9hen +oin$ were introdu+ed into the $%$tem$# the% were initia((% made o& go(d or $i(ver, In due +our$e# 'an5$ +ame into 'eing and the% i$$ued -a-er re+ei-t$ e2uiva(ent to the va(ue o& the go(d or $i(ver de-o$ited with them, The$e re+ei-t$ were the &orerunner$ o& the +urren+% that we u$e toda%, A(though in modern time$ -a-er mone% ha$ no intrin$i+ va(ue# it$ a++e-ta'i(it% origina((% de-ended on it$ 'eing 'a+5ed '% go(d or $i(ver, Hor in$tan+e# on the ear(ie$t &ive-do((ar 'i(($ wa$ -rintedG .Hive Si(ver Do((ar$#0 -romi$ing to -a% that mu+h o& $i(ver in e7+hange &or that +urren+% note, The +urren+% note$ o& di&&erent (and$ re-re$ented either go(d or $i(ver e2ua( to the va(ue mentioned or the +urren+%, 9ith the out'rea5 o& the Hir$t 9or(d 9ar in >=>@# Britain de+ided to withdraw go(d &rom interna( +ir+u(ation and other +ountrie$ a($o 'ro5e the (in5 with go(d, The Anited State$# However# 5e-t the (in5 to go(d and a&ter the Se+ond 9or(d 9ar the AS do((ar re-(a+ed the -ound $ter(ing a$ the 5e% g(o'a( +urren+%, Other +ountrie$ &i7ed their e7+hange rate$ again$t the do((ar# the va(ue o& whi+h remained de&ined in term$ o& go(d# In the ear(% >=:!$# the $%$tem o& &i7ed e7+hange rate$ $tarted to 'rea5 down a$ a re$u(t o& growing internationa( in&(ation Tem-ted '% the -romi$e o& wind&a(( -ro&it and a++ounting ra**(e-da**(e# the Anited State$ a'andoned the do((ar$ (in5 with go(d in >=:>, Right &rom the time o& the introdu+tion o& the +urren+% note$# the $%$tem 'e+ame -rone to &raudu(ent a+tivitie$, Sin+e no one 5new how mu+h go(d or $i(ver a 'an5 had in it$ vau(t$# in 'e+ame ea$% &or them to +heat the -u'(i+ '% -rinting a$ mu+h +urren+% a$

the% needed, That# in &a+t# 'e+ame ne+e$$ar% $in+e it wa$ needed &or $urviva( in a intere$t'a$ed $%$tem, Eventua((%# thi$ 'e+ame the mono-o(% o& government$# whi+h gave the &a($e notion that the% were -rinting +urren+% in (ieu o& the go(d and $i(ver that the% had in their e7+he2uer$, )eo-(e +ontinued to 'e(ieve that the government he(d at (ea$t $omething a$ a $e+urit% &or the +urren+% that the% -rinted, Thi$ +ame to an end with the introdu+tion o& the &iat +urren+% in >=:>, Hiat mone% or &iat +urren+% i$ mone% who$e va(ue i$ not derived &rom an% intrin$i+ va(ue or guarantee that it +an 'e +onverted into a va(ua'(e +ommodit% $u+h a$ go(d, In$tead# it ha$ va(ue on(% '% government other 4&iat6, Thu$ aro$e the $ituation in whi+h government$ +ou(d -rint a$ mu+h +urren+% a$ the% wanted-mone% 'e+ame mone% 3u$t 'e+au$e the government $aid it wa$ mone%, Thi$ introdu+tion o& &iat mone% +an 'e +on$idered the -rime rea$on &or the re+ent &inan+ia( turmoi( a(( over the wor(d, 9hen we &a+tor in the rea(it% that thi$ right to mint the +oin o& the rea(m ha$ 'een given over '% -o(iti+ian$ to -rivate 'an5ing intere$t$ in the wor(d 4the Hedera( Re$erve# &or in$tan+e# in the Anited State$# whi+h i$ a'out a$ &edera( a$ Hedera( E7-re$$6 one +an ea$i(% $ee the +au$e$ &or the +urrent g(o'a( e+onomi+ +ri$i$ and the inordinate in&(uen+e 3u$t a &ew 'an5er$ ho(d over -o(iti+ian$ and thu$ the nation, 9hen that nation i$ the Anited State$# that in&(uen+e i$ g(o'a(, Dirtua((% the entire wor(d (in5ed their +urren+% with the do((ar, Agen+ie$ (i5e the 9or(d Ban5 and the Internationa( Monetar% Hund 4IMH6# +ontro((ed '% Ameri+a# gave (oan$ to the $o-+a((ed Third 9or(d +ountrie$ on(% in (ine with their GD) 4Gro$$ Dome$ti+ )rodu+t6 growth, But not the Anited State$, It +ou(d -rint +urren+% without an% $u+h (imitation, It ha$ +ontinued to -rint do((ar$ in a'undan+e and (end it to other nation$, Thu$ va$t region$ o& the wor(d 'e+ame inde'ted to the Anited State$, Thi$ dire+t(% (ed to the evo(ution o& a ASdominated wor(d order, An% +urren+% that wou(d re-(in5 it$e(& to go(d# or another -re+iou$ re$our+e# wou(d a(mo$t in$tant(% 'rea5 the e+onomi+ +hain$ that (in5 other +urren+ie$ to the do((ar, It i$ thi$ &ear that a++om-anie$ the emergen+% o& Bhina/$ Shanghai Boo-eration Organi*ation# who are $aid to 'e $ee5ing to demote the do((ar a$ the +urren+% o& internationa( trade# or the re+ent -ani+ that drove go(d to re+ord (eve($ when it wa$ $aid that oi( wou(d no (onger 'e $o(d on(% 'a$ed on the A,S, do((ar, Hor thi$ rea$on# agen+ie$ (i5e the 9or(d Ban5 and the IMH $an+tion (oan$ to +ountrie$ without getting an% $e+urit% &rom them, The$e agen+ie$ them$e(ve$ and the nation$ the% avai( o& the (oan$ 5now ver% we(( that the +han+e$ o& the &u(( $ett(ement o& the$e (oan$ are 2uite remote, But a$ (ong a$ the $u-rema+% o& the do((ar and intere$t 'a$ed e+onomi+ $%$tem -revai($# other +ountrie$ have had no o-tion 'ut to avai( them$e(ve$ o& the$e (oan$,

The de't$ o& the deve(o-ing +ountrie$ are in+rea$ing at an e7-onentia( rate# dou'(ing ever% de+ade, A++ording to the $tati$ti+$ -u'(i$hed '% the IMH overa(( e7terna( de't o& deve(o-ing +ountrie$ in the %ear >=<! wa$ to the tune o& ;" ,"@ 'i((ion, It ri$e to ;># "=,< 'i((ion in >==!# and ; >#@!? 'i((ion in the %ear !!!, The intere$t and the re-a%a'(e -rin+i-a( amounted in+rea$ed to ;:I,@ 'i((ion in >=<!# ;>@!,? 'i((ion in >==!# and ;II:,< 'i((ion in the %ear !!=, The Anited Nation (ament$ that the amount +ou(d have 'een $u&&i+ient to $ave > mi((ion +hi(dren o& A&ri+a &rom death due to $tarvation and to -rovide e(ementar% edu+ation to =! mi((ion &ema(e +hi(dren, It i$ e$timated that ever%da% ;:!! mi((ion &(ow$ &rom deve(o-ing +ountrie$ to the deve(o-ed +ountrie$, Anre$trained -rinting o& +urren+% and the intere$t-'a$ed e+onom% (ed to the do((ar dominating in the wor(d &inan+ia( mar5et$ and other nation$ ta5ing the 'runt o& it, The e+onomi+ +ri$i$ that the Anited State$ i$ &a+ing at thi$ 3un+ture i$ nothing 'ut the natura( +on$e2uen+e$ o& it$ -o(i+% ma5er/$ own -o(i+ie$, It mu$t have 'een their over+on&iden+e that the $u-rema+% o& the do((ar wou(d +ontinue &orever and that the 'u''(e o& the $to+5 mar5et/$ 'oom wou(d 5ee- on growing that a((owed them to +reate derivative note$ 4an e7oti+ 5ind o& -%ramid $+heme that &ew under$tand and that 'an5$ -(a% with one another6 worth ;>!! tri((ion to 'e tran$a+ted in the Anited State$ at a time when the overa(( GD) o& the entire wor(d wa$ on(% ;:<," tri((ion, The +urrent &inan+ia( +ri$i$ ha$ $eriou$(% eroded +on&iden+e in the 9e$tern wor(d and ha$ e7-o$ed the .&ree0 mar5et, Burrent(%# when (oo5ing at a(ternative$# the 9e$tern wor(d on(% $ee$ remnant$ o& So+ia(i$m or $ome $tate intervention in e+onom% a$ &ea$i'(e and wor5a'(e $%$tem$, I& the O)EB nation$ and the deve(o-ing +ountrie$ 3oin hand$ and wor5 in a +ohe$ive manner# the% +ou(d -ut an end to the $ituation o& $u-rema+% o& one -arti+u(ar +urren+% and re$+ue the nation$ that the $u&&ering under the %o5e$ o& e7terna( de't, Loo5 at what the Nur/an $a%$ regarding the im-ortan+e o& wea(th and how +are&u((% it $hou(d 'e hand(edG .But do not give those who are {mentally} incompetent your wealth, for od has assigned you to maintain this {yourselves}! Rather, provided for them from it! "nd clothe them! "nd say to them a gracious {and comforting} word! K@G"L A($oG .Whatever "llah has restored to #is Messenger from the people of the towns, it is for "llah and for the Messenger {to dis$urse}, and for the near of kin and the orphans and the needy and the wayfarer, so that it does not merely circulated $etween the wealthy among you! %hus whatever the Messenger gives you, accept it, and from whatever he for$ids you, keep $ack, and $e careful of {your duty to} "llah surely "llah is severe in retri$uting {evil} K"=G:L )ro-het Muhammad# $a((a((ahu a(a%he wa $a((am# $tern(% warned hi$ &o((ower$ again$t e7-(oitation o& an% 5ind in +ommer+ia( a+tivitie$ and to maintain tran$-aren+% in a(( tran$a+tionG .Go(d &or go(d# $i(ver &or $i(ver# wheat &or wheat# 'ar(e% &or 'ar(e%# date$

&or date$# and $a(t &or $a(t (i5e &or (i5e# e2ua( &or e2ua(# and hand to hand# i& the +ommoditie$ di&&er# then %ou ma% $e(( a$ %ou wi$h# -rovided that the e7+hange i$ handto-hand0 4Mu$(im6, Thi$ $ing(e +ommand o& the )ro-het# $a((a((ahu a(a%he wa $a((am# i$ -regnant with -rote+tion that wou(d have -revented the 5ind o& 'ehind the $+ene$ derivative 4-ure(% innovated in$trument$ that do not e7i$t that .derive0 their va(ue &rom +redit &rom other a$$et$ with no organi+ (in5 to them6 mar5et$, It i$ the dut% o& $+ho(ar$ to (earn more dee-(% a'out the (egitima+% o& the tran$a+tion$ made u$ing the &iat +urren+%# whi+h ha$ no intrin$i+ va(ue other than the va(ue o& it$ -a-er, In the (ight o& the I$(ami+ in3un+tion$ that a(( 5ind$ o& tran$a+tion$ $hou(d 'e tran$-arent# we $hou(d e7amine how mu+h the -romi$e$ o& the $tate that -rint$ the +urren+% $hou(d 'e 'e(ieved, I$ it -o$$i'(e to ma5e >!! -er+ent (egitimate tran$a+tion$ with +urren+ie$ that have no intrin$i+ va(ue8 9on/t the $%$tem$ that +arr% out intere$t&ree tran$a+tion$ 'e adver$e(% a&&e+ted when dea(ing with +urren+ie$ that are -erennia((% (o$ing their va(ue due to in&(ationar% trend$8 I$ it not unrea$ona'(e to e7-e+t men who have mone% to $erve humanit% '% $u&&ering the (o$$e$ in+urred 'e+au$e o& the de-(etion o& the va(ue o& their mone%8 The$e &a+t$ -oint out that the +on+e-t o& &iat mone% i$ again$t the -rin+i-(e$ o& &inan+ia( tran$a+tion in I$(am, ID, RIBA B% A#% #AME I" E(!L ITATI #

THE ASSARANBE OH re-a%ment o& their +urren+% note$ that nation$ other than Ameri+a -rovide the ho(der$ o& their +urren+% i$ 'a$ed on the va(ue o& the do((ar, 9hatever the do((ar i$ worth a$ it re(ate$ to their +urren+%# the% wi(( -a%, The do((ar it$e(&# however# ha$ no intrin$i+ va(ue and i$ 'ui(t on &(im$% &oundation$, 9h% did Ameri+a do thi$ to it$e(&8 More a++urate(%# wh% did the government o& the -eo-(e do thi$ to it$ -eo-(e8 The immediate rea$on &or the introdu+tion o& &iat mone% '% the Ni7on government wa$ that Britain a$5ed the A,S, Admini$tration in >=:> to honor it$ +ommitment to i$$ue go(d &or the do((ar$ that the Briti$h government had, B% deta+hing it$ +urren+% &rom go(d that -a% out wa$ o$ten$i'(% $ide$te--ed, Yet even renowned 9e$tern e+onomi$t$ have 2ue$tioned the (egitima+% o& &iat +urren+%, One o& the mo$t im-ortant e+onomi$t$ and -o(iti+a( -hi(o$o-her$ o& the !th +entur% and the winner o& the No'e( )ri*e in E+onomi+$ in >=:@# Hriedri+h Augu$t von Ha%e5# ha$ &ound &au(t with the $%$tem o& &iat +urren+%, The renowned German e+onomi$t Ludwing La+hmann# Ameri+an inte((e+tua( and e+onomi$t Murra% Newton Roth'ard# Briti$h e+onomi$t I$rae( Muir Bhri$tner# Dr, Bhario Lavo%# )ro&e$$or o& E+onomi+$ in New Yor5 Aniver$it%# )eter F, Boett5e# an Ameri+an e+onomi$t and the Editor-in-Bhie& o& Review of "ustrian Economics are 'ut a &ew among the great e+onomi$t$ o& the wor(d who have rai$ed dou't$ a'out the re$i(ien+e o& the wor(d who have rai$ed dou't$ a'out the re$i(ien+e o& the &iat +urren+% and advo+ated the u$e o& a +urren+% with intrin$i+ va(ue, The Au$trian E+onomi$t$# 5nown &or 'eing vo+a((% again$t the -revai(ing wor(d e+onomi+ $tru+ture# are genera((% o& the o-inion that in monetar% e+onomi+$# &iat mone%

i$ an intrin$i+a((% u$e(e$$ good a$ a mean$ o& -a%ment and that &iat +urren+ie$ u(timate(% de$tro% them$e(ve$ and their nation$ with h%-erin&(ation, Hormer -re$identia( +andidate Sen, Ron )au(/$ %he &ase for old# whi+h i$ 'a$ed on the Re-ort o& the A,S, Go(d Bommi$$ion# (ament$ the &a+t that man% -eo-(e in Ameri+an -u'(i+ (i&e argue &or the 2ua(it% theor% o& mone% and &or a +urren+% whi+h i$ 'a$ed on it$ e2uiva(ent worth o& go(d 'ut to no avai(, Tho$e who $ti(( maintain the +a-ita(i$ti+ mind$et and %et argue in &avor o& the 2ua(it% theor% o& mone% u-ho(d the 'e(ie& that thi$ wou(d -ut an end to in&(ation and re(ated -ro'(em$, In&(ation i$ a ri$e in the genera( (eve( o& -ri+e$ o& good and $ervi+e$ in an e+onom% over a -eriod o& time, The -rominent &a+tor$ that +au$e in&(ation are that the mone% in +ir+u(ation in+rea$e$# the avai(a'i(it% o& +ommoditie$ de+rea$e$# the avai(a'i(it% o& +ommoditie$ de+rea$e$# the va(ue o& mone% de+rea$e$# and the demand &or +ommoditie$ in+rea$e$, I& the government$ +an -rint +urren+% on(% 'a$ed on go(d or $i(ver that the% a+tua((% have in their +o&&er$# the% wou(d not 'e a'(e to -rint +urren+% indi$+riminate(%, Thi$ it$e(& wou(d +ur' in&(ation and de+rea$e the 'urden o& the +ommon man, It wou(d motive +ountrie$ to -rodu+e in e7+e$$ o& their need$ and earn go(d-guaranteed mone% in return &or the good$ the% e7-ort, It wou(d (ead to rea( e+onomi+ advan+ement among -eo-(e a$ o--o$ed to the -rogre$$-on--a-er that the wor(d i$ a++u$tomed to, Thi$ i$ how the wor(d +an rea((% -ut into -ra+ti+e the divine -rin+i-(e that -ro$-erit% +an 'e attained through $in+ere e&&ort$, Intere$t i$ one o& the greate$t 'ane$ o& humanit%, It ne+e$$itate$ $u&&ering in thi$ wor(d and invite$ God/$ wrath here and in the Herea&ter, A++ording to $evera( ahadeeth in Sahih a(-Bu5hari and Mu$(im# intere$t i$ one o& the $even dead(% $in$, The )ro-het# $a((a((ahu a(a%he wa $a((am# $aidG The re+eiver and the -a%er o& intere$t# the one who re+ord$ it and the witne$$e$ to the tran$a+tion have 'een +ur$ed, He $aidG .The% are a(( a(i5e in gui(t04Mu$(im6, The Bom-anion Samurah i'n Fundu' re-orted that the )ro-het# $a((a((ahu a(a%he wa $a((a$m# .$aw in hi$ dream a man $tanding in a river o& '(ood, On the river'an5# there $tood a man who had $tone$# with him, Ea+h time the man in the river wanted to +ome out# the man with the $tone$ wou(d throw a $tone into hi$ mouth# whi+h wou(d drive him 'a+5 to hi$ -o$ition, The )ro-het# $a((a((ahu a(a%he wa $a((am# a$5ed a'out thi$ man in the river, He wa$ in&ormed he wa$ man dea(ing in riba (Bu5haari6 The ear(ie$t 'an5er$ u$ed to (end +ommoditie$ +harging intere$t &or them, The trader$ who 'orrowed had to re-a% the de't '% returning more $to+5 to the 'an5er$, But the +(ever 'an5er$ 5new that thi$ 'u$ine$$ wou(d not (a$t &or (ong, Thi$ wa$ the rea$on the% +ame u- with the idea o& re-re$entative mone%# the &orerunner o& toda%/$ +urren+%, The -eo-(e who 'orrowed never rea(i*ed how dangerou$ it wa$ going to 'e, It ha$ to 'e mentioned here that it wa$ the introdu+tion o& +urren+% that (ed to the tremendou$ growth o& the 'an5ing indu$tr%,

The greate$t o'$ta+(e to advan+ement &or deve(o-ing +ountrie$ i$ the huge amount o& intere$t that the% have to -a% ever% %ear &or the do((ar$ that the% have 'orrowed &or the 9or(d Ban5 and IMH, Heeding the word$ o& advi+e voi+ed in &avor o& ur'ani*ation '% the -aid inte((e+tua($ o& the 9e$t# mo$t deve(o-ing +ountrie$ 'orrowed i((ogi+a((% and 'e+ame vi+tim$ o& the de't tra-#, It i$ a(mo$t im-o$$i'(e to e$+a-e &rom the tra- on+e %ou have &a((en into it, Ho-e give$ wa% to di$i((u$ionment and &ru$tration, Su&&ering# $tarvation# ma(nutrition# and ero$ion o& mora( va(ue$ are the immediate +on$e2uen+e$, It i$ a$ i& the% are &a((ing# &a((ing-&a((ing into a 'ottom(e$$ -it# and there i$ no one to $end a $ear+h -art%, The government$ +ontinue to 'orrow to $urvive and (ive another da%, The &a+t that a(mo$t : mi((ion +hi(dren 5i((ed ever% %ear due to $tarvation and ma(nutrition $hou(d o-en the e%e$ o& ever%one, The -er +a-ita in+ome o& the Anited State$ ro$e &rom ;=#=<I in >=?! to ;I@#>!! in the %ear !!!# an in+rea$e o& a'out @!! -er+ent, Remem'er the dwind(ing -er +a-ita in+ome o& Soma(ia in the $ame -eriod ;<=> to ;?!!8 Simi(ar(%# the -er +a-ita( in+ome Madaga$+ar de+rea$ed &rom ;>#!>I to ;<!!# and that o& Oam'ia +ame down to ;:"! &rom ;>#>: , Thi$ -attern i$ no m%$ter%, It i$ u'aw% de't that i$ the too( o& their en$(avement, It i$ '% the intere$t +o((e+ted &rom the$e -oor nation$ that .the great -ower$0 have -ro$-ered and &(ouri$hed, The tota( amount o& de't o& the deve(o-ed +ountrie$ in the %ear !!" wa$ ; =! 'i((ion, The re-a%ment amount &or that %ear amounted to ;":,I 'i((ion, 9i(( the$e +ountrie$ ever 'e a'(e to re-a% their de't$ in &u((8 An% $ane -er$on 5now$ that the% wi(( not# &orever, The -o(iti+ian$ and ru(er$ o& the deve(o-ed +ountrie$ ama$$ huge wea(th through +orru-tion# and their +or-orate hou$e$ rea- ri+h harve$t$ through $had% 'u$ine$$ dea($# At the $ame time the va$t ma3orit% o& human 'eing$ in the wor(d $u&&er under the %o5e o& the heav% intere$t 'urden (aid on their &ee'(e $hou(der$ '% the 9or(d Ban5 and the IMH# whi+h are the agen+ie$ o& the deve(o-ed nation$, The &ir$t +au$e o& the &inan+ia( +ri$i$ that ha$ hit the entire wor(d i$ the intere$t $%$tem, Thi$ $%$tem# whi+h wa$ de-(o%ed '% the deve(o-ed nation$ in order to e7-(oit and $u'3ugate other +ountrie$# ha$ now 'egun to 'oomerang on them, The% them$e(ve$ +a(( the +ri$i$ '% another name 1 Bredit Bhur+h !!<, 9or(d E+onomi+ Out(oo5 >==< -u'(i$hed '% the IMH $tate$ that +ountrie$ 'urdened heavi(% '% e7+e$$ive $hort-term 'orrowing$ wi(( have to $trugg(e great(% 'e+au$e o& e7terna( and interna( +ri$e$, The neo-(i'era(i$t$ o& the deve(o-ed nation$ had never anti+i-ated that the intere$t $%$tem that the% had anti+i-ated that the intere$t $%$tem that the% had em-(o%ed $o $u++e$$&u((% to e7-(oit -oor +ountrie$ wou(d one da% turn it$ $er-ent/$ head again$t them and atta+5 them $o vi+iou$(%, Yet man% $ti(( do not rea(i*e that the% are $u++um'ing to the $ame &ate that an% $o+iet% 'a$ed on intere$t i$ 'ound to $u&&er,

The -ra+ti+e$ o& the modern 'an5ing $%$tem are in +on&(i+t with the -rin+i-(e$ o& I$(am, I$(am $tri+t(% -rohi'it$ ta5ing or giving intere$t, It o--o$e$ e7-(oitation in ever% &or and $tand$ &or &air and e2uita'(e dea(ing$ among a(( men, Intere$t-'a$ed e+onomie$ de-end on the growth o& mone% &or their $urviva( and e7-an$ion, Mone% doe$ not grow o& it$ own a++ord, It ha$ to rea+h the hand$ o& e&&i+ient entre-reneur$ that ma5e it grow# But the -re$ent $%$tem indu+e$ the entre-reneur to 'orrow re(ent(e$$(% to aid the growth o& the 'an5$, The modern 'an5ing $%$tem i$ organi*ed on the 'a$i$ o& a &i7ed -a%ment +a((ed intere$t, The% ta5e awa% a huge -ortion o& the -ro&it that i$ made a$ a re$u(t o& the hard wor5 o& the entre-reneur$, Even i& a 'u$ine$$ the% have inve$ted in run$ at a (o$$# the% +on$ider none o& their mone% at ri$5, The% $ti(( demand -a%ment# regard(e$$, But 'an5 not on(% ree( in huge -ro&it &rom the ungod(% amount$ o& intere$t the% re+eive# the% a($o re$ort to the .+reation0 o& +redit, Thi$ -ro+e$$ 'egin$ with 'an5$ (ending mone% out o& -rimar% de-o$it$, )rimar% de-o$it$ are tho$e de-o$it$ that are de-o$ited in 'an5$, Through +redit +reation# 'an5$ are a'(e to (end amount$ mu+h (arger than the de-o$it$ that the% have with them, Hor ever% ;>! the% have on (and# the% +an give out ;=! the% don/t have# -ure(% '% the &a'ri+ation o& num'er$ in a +om-uter, No -a-er mone%, Nothing, And even thi$ ;>! the% have# +an +ome to them another 'an5 that ha$ +reated it through 3u$t ;> it re+eived &rom another 'an5# and $o on u- the +hain to the Hedera( Re$erve# who $im-(% +harge$ the Ameri+an government &or it# who i$ inventing it in the &ir$t -(a+e '% &iat, You or I wou(d 'e arre$ted &or doing the $ame, The mad ru$h '% 'an5$ to ma5e ma7imum -ro&it$ i$ $aid to 'e re$-on$i'(e &or the !!< Bredit Bri$i$, The -ro-he+% made '% )ro-het Muhammed# $a((a((ahu a(a%he wa $a((am# i$ re-orted to have $aid that the .inten$it% o& ruin in $tore &or tho$e who in+rea$e their ri+he$ u$ing intere$t wi(( 'e in a++ordan+e with how mu+h Kintere$tL the% re+eived04I'n Ma3ah6, An% $ame -er$on who under$tand$ the &iat mone% &ia$+o and the +redit +reation $+am we are in to turn rea( a$$et$ over to 'an5er$ who $im-(% -u$h 'utton$ and ma5e mone% out o& thin air wi(( immediate(% 'egin $ear+hing &or an intere$t-&ree $%$tem, And that wi(( natura((% ta5e him or her to the I$(ami+ 'an5ing $%$tem, In the >=<!$# di$+u$$ion$ a'out the a(ternate 'an5ing $%$tem 'egan, In the (a$t &our de+ade$# it i$ the I$(ami+ 'an5ing $%$tem that ha$ emerged a$ the .$ur-ri$e0 +om-etitive and via'(e $u'$titute &or +onventiona( 'an5ing, In the Indian -enin$u(a# $ome e&&ort$ have 'een made in thi$ dire+tion, But the &ir$t modern e7-eriment with I$(ami+ 'an5ing wa$ underta5en in Eg%-t under +over without -ro3e+ting an I$(ami+ image, The -ioneering e&&ort# (ed '% Ahmad E(naggar# too5 the &orm o& a $aving 'an5 'a$ed on -ro&it-$haring in the Eg%-tian town o& Mit Ghamr in >=?I, The e$ta'(i$hment o& Ban5 I$(am Ma(a%$ia Berhad 4BIMB6 in Fu(% >=<I mar5ed a mi(e$tone &or the deve(o-ment o& the I$(ami+ &inan+ia( $%$tem in Ma(a%$ia, BIMB +arrie$

out 'an5ing 'u$ine$$ $imi(ar to other +ommer+ia( 'an5$# 'ut attem-t$ to 'e +on$i$tent with the -rin+i-(e$ o& the Shari/ah, Du'ai I$(ami+ Ban5# &ormed in >=:I# i$ the mo$t &amou$ 'an5ing hou$e o& thi$ +ategor%, B% the %ear >=<?# : $u+h un+onventiona( 'an5$ $tarted &un+tioning in variou$ Mu$(im +ountrie$, In due +our$e# the e7i$ting +onventiona( 'an5$ o-ened their window$ to a$$o+iate with the I$(ami+ 'an5$ &or the +onvenien+e o& the a++ount ho(der$ in 'oth the $e+tor$, B% the %ear !!!# a'out !! $u+h un+onventiona( 'an5$ +ame into e7i$ten+e, Their -aid u- +a-ita( amount$ to ;< 'i((ion and tota( de-o$it$ have +ro$$ed the meaning&u( ;>!! 'i((ion mar5, E(imination o& ri'a# intere$t# in a(( it$ &orm$ i$ an im-ortant &eature o& the I$(ami+ &inan+ia( $%$tem, I$(ami+ 'an5ing i$ mu+h more# however, At the heart o& I$(am i$ a $en$e o& +oo-eration# to he(- one another a++ording to -rin+i-(e$ o& goodne$$ and -iet%, I$(ami+ &inan+e ma% 'e viewed a$ a &orm o& ethi+a( inve$ting or (ending# e7+e-t that no (oan$ are -o$$i'(e un(e$$ the% are intere$t-&ree, The I$(ami+ &inan+ia( $%$tem -romote$ the +on+e-t o& -arti+i-ation in a tran$a+tion 'a+5ed '% rea( a$$et$# uti(i*ing the &und$ at ri$5 on a -ro&it-and-(o$$ $haring 'a$i$, Thi$ '% no mean$ im-(ie$ that inve$tment$ with &inan+ia( in$titution$ are ne+e$$ari(% $-e+u(ative, Thi$ +an 'e minimi*ed '% +are&u( inve$tment -o(i+%# diver$i&i+ation o& ri$5# and -rudent management, The +on+e-t o& -ro&it and (o$$ $haring in an enter-ri$e# a$ a 'a$i$ o& &inan+ia( tran$a+tion$# i$ a -rogre$$ive one# a$ it di$tingui$hed good -er&orman+e &rom 'ad and medio+re, The I$(ami+ 'an5$ have re-orted(% weathered the $torm o& the re+ent .+redit +ri$i$0 ver% we((, 9hat i$ im-ortant i$ that thi$ +a-a+it% i$ $o(e(% do to the humane nature o& their inve$ting and (ending enter-ri$e, It i$ I$(am/$ -rin+i-(e$ o& ethi+a( wea(th a+2ui$ition# di$'ur$ement# and gi&ting that have $hie(ded the I$(ami+ 'an5$# A((ah a(one i$ the )rovider# and A((ah a(one i$ the )rote+tor, D, A T$ &'$T

IN A 9ORLD ne+5 dee- in the (etha( intere$t $%$tem# the emergen+e o& the I$(ami+ 'an5ing $%$tem o&&er$ a handho(d o& ho-e, Yet hone$t% and &ear o& God +om-e($ u$ to admit that man% o& the$e in$titution$ do not# &or variou$ rea$on$# &un+tion in +om-(ete a++ord with the I$(ami+ -rin+i-(e$ o& '(e$$ed and mora( wea(th, The% have their (imitation$ not (ea$t o& whi+h i$ the $heer vi+iou$ne$$ o& the (eague the% o-erate in, The% are &or+ed to &o((ow the $ame monetar% -o(i+ie$ evo(ved over the -a$t &ew +ountrie$, But the% have 'een a'(e to ma5e $ome e&&ort to ma5e at (ea$t a &ew +hange$ in the -re$ent wor(d e+onomi+ $%$tem and $how the wor(d that there i$ a via'(e a(ternative that +an 'e &o((owed, The &ir$t ma3or e&&ort '% the$e I$(ami+ 'an5$ to add momentum to thi$ +hange i$ to ado-t a +urren+% 'a$ed on it$ e2uiva(ent va(ue o& go(d# $i(ver# -(atinum# +o--er# or

$imi(ar(% -re+iou$ +ommoditie$, I& the e(e+troni+ mone% that i$ inevita'(% going to 'e wide(% u$ed in the wor(d in the near &uture i$ given the guarant% o& a va(ue o& +ommoditie$# it wi(( 'e a great 'eginning, In $u+h a $+enario# -oor and deve(o-ing +ountrie$ wi(( 'e+ome -rimar% 'ene&i+iarie$ o& the I$(ami+ 'an5ing $%$tem and the% wi(( $ure(% re+ogni*e thi$, It i$ high time that the wor(d rea(i*e that the -re$ent e+onomi+ $%$tem i$ 'a$ed on m%th$ and &raud$, Let the nation$ that A((ah ha$ '(e$$ed with rea(# +ommodit% wea(th# then# rethin5 their &inan+ia( -o(i+ie$ and inve$t in va(ue 'a$ed +ommoditie$ in order to 'e a'(e to (ead the wor(d down the &inan+ia( $traight -ath, Then the% wi(( 'e a'(e to re$+ue the deve(o-ing +ountrie$ &rom the de't intere$t 'oo'% tra- that the% have &a((en into, The wor(d i$ +raving +hange and the 5e% to that +hange ha$ 'een -(a+ed in the hand$ o& the Mu$(im$, The +urrent +ri$i$ re-re$ent$ an o--ortunit% &or Mu$(im$ to -re$ent the I$(ami+ e+onomi+ $%$tem a$ an a(ternative, Are Mu$(im$ read% to tran$&orm them$e(ve$ and the wor(d u$ing the 5now(edge that God# the A((-Enowing# ha$ entru$ted to them8 Are Mu$(im$ +ourageou$ enough to de+(are to the wor(d# a$ )ro-het Fo$e-h did to the Eg%-tian 5ing &a+ing +ata$tro-hi+ e+onomi+ +ri$i$ though Fo$e-h mu$t have a--eared the mo$t un(i5e(% +andidate to do $o# a $(ave +oming &or the &rom the de-th$ o& -ri$onG '"ppoint me over the treasuries of the land! ( am a good keeper and well knowing) K> G""L8 The wor(d# then# wa$ at hi$ +ommand,