09-29-2003, 09:02 PM
Assalam-o-Alikum
Guys I would like thank all those who have participated in this debate and brought such important stuff to ppl like me who are not updated.
My point of view on this is bit different as I think we have started from the wrong point and are feeling bit confused. Before comparing the to systems of financing we must compare the basis of the two viz âIslamic Economic Systemâ and âCapitalistic Economic Systemâ. Our system is based on the âWelfare of Mankindâ and the other is on âProfit Motiveâ. That very distinction makes the two systems incomparable, as ultimate goals of the two are poles apart.
As for the currently practiced systems of Islamic financing I would like to say that they lack the spirit of Islam. And the people Incharge of these organizations are trying to balance the returns under the two systems so that they can continue to receive the deposits form the investors for onward investment opportunities. Its like matching the earnings of a thief with that of an honest worker which all of us know is not possible as it will eliminate the motive for theft. The picture, which comes out, is that we have a SUZUKI car and want to fit the engine of BMW in it???? And thatâs the reason we have unanswered questions form other ppl as presented by smraza in his post of 26 Sep 2003.
Raza u have raised a question which is quite common and I would like to explain that the difference is not interest or Riba, its inflation which changes the prices of the commodities over the period of time. Now if we are in an economy in which all transactions are asset backed then we have no inflation and will not face this problem of losing the value of our assets over the period of time. In view of orthodox scholars of Islam the paper money is not allowed means of transaction. As we all know that in general for every 20 paisa asset we print a rupee which leaves us with 80 paisaâs which donât exist and still are there to buy assets which are also not there and will push the prices up and create difference in society which amounts to causing âfitnaâ (dispute) and is ranked above by Quran over murder and Quran also say that murder of one human is the murder of whole humanity. One may argue that demand and supply will push the prices and will cause the inflation. Under such case we resort to the basic principal of âwelfare of mankindâ and will convert our loan or portion of it as âSadqaâ (charity) and wave off the extra portion or whole amount to get its return from Allah on the Day of Judgment. Here I would like to bring to the knowledge of the readers that our Prophet (PBUH) has advised us to plan new cities when the size of existing one goes out of hand. This very instruction has the tendency of working as pressure valve for demand and supply force and ultimately for inflation.
I must say that this whole Idea of bringing the change through the ppl who are involved in current days banking system (that includes me) will not work. We have to start these organizations from scratch to bring the true picture of Islam and its beauty to the general public.
Now there is a proviso to the above argument as it all may fail if we could determine the true nature of the kinds of contarcts entered into by the muslims in the time of their glory as I have heard that there were 36 different kinds of contracts practiced by the Muslims and out these only 6 or 7 are used by the banks these days. I would appreciate if any one could guide me to the books or sites from where I could learn about these contracts.
Regards
Faisal Bashir
Guys I would like thank all those who have participated in this debate and brought such important stuff to ppl like me who are not updated.
My point of view on this is bit different as I think we have started from the wrong point and are feeling bit confused. Before comparing the to systems of financing we must compare the basis of the two viz âIslamic Economic Systemâ and âCapitalistic Economic Systemâ. Our system is based on the âWelfare of Mankindâ and the other is on âProfit Motiveâ. That very distinction makes the two systems incomparable, as ultimate goals of the two are poles apart.
As for the currently practiced systems of Islamic financing I would like to say that they lack the spirit of Islam. And the people Incharge of these organizations are trying to balance the returns under the two systems so that they can continue to receive the deposits form the investors for onward investment opportunities. Its like matching the earnings of a thief with that of an honest worker which all of us know is not possible as it will eliminate the motive for theft. The picture, which comes out, is that we have a SUZUKI car and want to fit the engine of BMW in it???? And thatâs the reason we have unanswered questions form other ppl as presented by smraza in his post of 26 Sep 2003.
Raza u have raised a question which is quite common and I would like to explain that the difference is not interest or Riba, its inflation which changes the prices of the commodities over the period of time. Now if we are in an economy in which all transactions are asset backed then we have no inflation and will not face this problem of losing the value of our assets over the period of time. In view of orthodox scholars of Islam the paper money is not allowed means of transaction. As we all know that in general for every 20 paisa asset we print a rupee which leaves us with 80 paisaâs which donât exist and still are there to buy assets which are also not there and will push the prices up and create difference in society which amounts to causing âfitnaâ (dispute) and is ranked above by Quran over murder and Quran also say that murder of one human is the murder of whole humanity. One may argue that demand and supply will push the prices and will cause the inflation. Under such case we resort to the basic principal of âwelfare of mankindâ and will convert our loan or portion of it as âSadqaâ (charity) and wave off the extra portion or whole amount to get its return from Allah on the Day of Judgment. Here I would like to bring to the knowledge of the readers that our Prophet (PBUH) has advised us to plan new cities when the size of existing one goes out of hand. This very instruction has the tendency of working as pressure valve for demand and supply force and ultimately for inflation.
I must say that this whole Idea of bringing the change through the ppl who are involved in current days banking system (that includes me) will not work. We have to start these organizations from scratch to bring the true picture of Islam and its beauty to the general public.
Now there is a proviso to the above argument as it all may fail if we could determine the true nature of the kinds of contarcts entered into by the muslims in the time of their glory as I have heard that there were 36 different kinds of contracts practiced by the Muslims and out these only 6 or 7 are used by the banks these days. I would appreciate if any one could guide me to the books or sites from where I could learn about these contracts.
Regards
Faisal Bashir