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Al-Cordoby  
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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Topic: Islamic Economics: An Alternative
    Posted: 23 December 2008 at 12:12am
This article by an expert in Islamic transactions was posted a few days ago on IOL, titled (Islamic Economics: An Alternative):
 
Islamic Economics: An Alternative

Signs of the collapse of the world financial system have emerged, causing great panic to people all over the world. Many governments called upon economists and experts to find a way out. Financial institutions and their agents began to think about rescue plans. ...

Islamic Economics

The current financial crisis debunks the myths of Capitalism, opening the way for alternative economic systems to emerge, among which is the Islamic finance and economy.

The Islamic economic and financial system is based on a set of values, ideals, and morals, such as honesty, credibility, transparency, clear evidence, facilitation, co-operation, complementarily ,and solidarity.

These morals and ideals are fundamental because they ensure stability, security, and safety for all those involved in financial transactions. Furthermore, the Islamic Shariah prohibits the economic and financial transactions that involve lying, gambling, cheating, gharar (risk-taking), gahalah (unawareness), monopoly, exploitation, greed, unfairness, and taking people’s money unjustly.

In addition, Islamic economy promotes participation in profit, loss, and actual exchanges of money and assets. In fact, there should be real interaction between the wealthy, employers, the employees, and financial experts. 

There is no party who is a constant winner or a constant loser; yet profit and loss is mutually shared ...

http://www.readingislam.com/servlet/Satellite?c=Article_C&cid=1229319074438&pagename=Zone-English-Discover_Islam%2FDIELayout

What do you think?
 


Edited by Al-Cordoby - 24 December 2008 at 11:32pm
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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Posted: 24 December 2008 at 11:35pm
Does today's global economy need change?
 
Does it need more ethics and social responsibility?
 
What do you think?
 
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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Posted: 27 December 2008 at 12:20am

What is important to understand in the current world financial crisis is that we are all on the same boat: if it sinks we will all sink, and if it survives we will all (or at least most of us) escape this massive storm.

It is therefore in the world's collective best interest to find a coherent sound solution which all countries agree to so that we don't all drown

What should the world do to get out of this crisis? is therefore (imo) the right question to ask and try to answer answer ...

- Is Venture Capital the right alternative for funding real business, and should all countries restructure their stock-markets?

- Should gold be considered to restore confidence in savings?

- Can we end unjust wars and reduce public deficits?

- Should we end gambling and future speculative-types of transactions in stock markets and financial and commodity markets?

- What can be done to minimize panic and financial worries among people?

Each problem has a solution, and ships can be rescued if we try

In order not to see the global economy sink as a global titanic in 2009, a clear vision and leadership based on mutual consultation among all people on the ship is the way forward

Let's hope that 2009 is a better year than what most people expect

We should take all precautions, but at the same time there is always hope

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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Posted: 02 January 2009 at 11:57pm

Reading material on this topic from Dr. Umar Chapra:

Towards a Just Monetary System:
 
The book is mainly concerned with the goals, nature and operations of the monetary system of Islam, which has justice as one of its most indispensable objectives.

For most people, including some Muslims, an interest-free economy is a mystery. Hence a number of questions are asked. Has Islam really prohibited interest and, if so, what is the purpose behind this? Can an economy run without interest? What will be the impact on resource allocation, savings and capital formation, economic stability and growth?

Dr. Chapra takes the mystery out of the subject by answering these and a number of other questions by means of a thorough economic analysis. While he shows the rationale behind the prohibition of interest and the strengths of a purely equity-based Islamic economy, he also indicates the problem and gives realistic proposals for solving them

http://www.iiibf.org/elibrary/muchapra/A1%20Towards%20a%20Just%20Monetary%20System.pdf

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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Posted: 28 January 2009 at 12:25am
 ISLAMIC BANKING AND DEVELOPMENT: AN ALTERNATIVE BANKING CONCEPT?

The guiding principle in Islamic financing

The principle of justice is essential in all forms of Islamic financing. In profit sharing, when al Islamic bank provides means of payment to the producers, both parties share the real actual results or net profit/loss of a productive project. It is not just to throw the risk burden on one side, the entrepreneur, by guaranteeing a given return to the provider of money regardless of whether the project makes money or looses money. The fair play of market forces determines the rates of distribution of profit of the operation among the financier and beneficiary.

When financing is done on the basis of sale or lease principles, the Islamic bank carries the kind of risk associated with buying and owning a good and then providing it to its user. In both the cases, the fair play of market forces determines the profit/rent of the goods provided by the financier to the beneficiary.

http://monzer.kahf.com/papers.html

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Rating: 0 of 0 votes Quote Nura Replybullet Posted: 29 January 2009 at 11:04am
You posted very good articles brother, but they are all written by Muslim and somebody may think we are partial.
 
See this video please:
This is confirmed by  a "neutral" voice!
Spare me the political events and power struggles, as the whole earth is my homeland and all men are my fellow countrymen. K.Gibran
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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Posted: 29 January 2009 at 1:28pm
Very interesting
 
Thank you sister
 
 
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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Posted: 29 January 2009 at 2:29pm
Two new articles:
 
One from Islamicity titled:
 
Can Islam Save The Economy?
 
 
The author is Nathan Schneider, a writer who lives in Brooklyn, New York. He holds a master's degree in religious studies from the University of California, Santa Barbara, and a bachelor's in the same subject from Brown University
 
The second is the opinion of Malaysia's ex-Prime Minister:
 
Mahathir calls for rebuilding of global financial system
 
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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Posted: 06 February 2009 at 1:47pm
Boom, Bust, Crunch ... an Islamic Solution?
 
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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Posted: 09 February 2009 at 12:35am
A Debate on Money
 
A debate on money and gold with Tarek El-Diwany (UK)
 
 
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Rating: 0 of 0 votes Quote The_Seeker Replybullet Posted: 09 February 2009 at 8:38pm
Asalaam Alaikum!

I just came across this article today from a CAIR email I received. Good article:

Muslim investors profit by adhering to faith

Here's my favorite part of the article:

Bay Area residents who bought homes through an Islamically compliant lender in San Jose, the Ameen Housing Cooperative, don't have to worry whether their lender will work with them if they lose their jobs. Islamic lenders are required to work in good faith with distressed borrowers to figure out ways to make payments manageable - and co-op leaders say they will.

I just wish there were more Islamic lenders and banks. Until there are, I guess I'm stuck with the same old corrupt system that got us into this mess to begin with.

Peace
The Prophet Muhammad (peace be upon him) said: "The strong person is not the one who knocks others down, but the one who controls himself when angry."
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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Posted: 16 February 2009 at 12:21am

An interesting analysis by Prof. Rodney Wilson who is the Director of Postgraduate Studies, School of Government and International Affairs of Durham University (UK):

Why Islamic Banking Is Successful?

Islamic Banks Are Unscathed Despite of Financial Crisis

The soundness of Islamic banks is accounted for by the fact that they use a classical banking model, with financing derived from deposits, rather than being funded by borrowings from wholesale markets.

Consequently when the credit crunch came and borrowing from wholesale markets was halted, Islamic banks were not exposed. However, Islamic banks are not immune from the effects of the global recession, and the fall in oil prices will inevitably have a negative impact on 2008 results of Gulf-based Islamic banks.

http://www.islamonline.net/servlet/Satellite?c=Article_C&cid=1230650190574&pagename=Zone-English-Muslim_Affairs%2FMAELayout

 

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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Posted: 18 February 2009 at 12:14am

To reform global finance, we need to acknowledge the very obvious fact that the current practice of Globalization is not sustainable, and that on the long run, for most countries, it leads to more serious problems than its short-term benefits

Real reform must be based on the clear conclusion reached from the current crisis that the national politics and best interests of each country, which is based on the free will of the people, must be in the driving seat, not global investors

When this is the case, each country will be able to design and implement the regulations needed for bringing banks and financial institutions under control, with proper regulations which protect the best interests of its citizens

The current system would never respond to reform without this basic foundation

Free politicians should control investors, in a fair and sustainable partnership, not the other way round, as in the current global mess
 

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Rating: 0 of 0 votes Quote Al-Cordoby Replybullet Posted: 20 February 2009 at 11:49pm
One of the important areas where the socio-economical principles of Islam help improve the economy is the high priority given to helping those who need help
 
In addition to the obligatory Zakah (2.5% of yearly savings) which a Muslim must pay to the poor, Islam opens many doors to help the poor escape from poverty
 
One of these doors is by encouraging partnerships between owners of capital and entrepreneurs, and prohibiting usury and interest-based finance
 
If a person with a good business idea and a good business plan goes to a traditional bank to ask for finance and he happens to be poor, the bank will in 99.9% of cases refuse to support him, as he has no guarantees to offer in return for the fund he requests
 
On the other hand, when the concept of partnerships prevail in an interest-free banking system, this same person would have a much better chance of getting funding for his project, and eventually succeeding in business, which means that a larger percent of the poor have a way out of the poverty trap
 
If you take this concept to the macro and global level, it may actually be the way out from the current global financial and eonomical crisis you see today ....
 
 
 
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