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ISLAM : SOLUTION TO FAILURE OF CAPITALISM?

ISLAM : SOLUTION TO FAILURE OF CAPITALISM? . by Nihal Javed . Agenda. Why Capitalism Failed? Root of Global Financial Crisis ISLAM – A Comprehensive Solution ISLAMIC MODEL OF ECONOMICS Conclusion References. Why Capitalism Failed? . Model based on greed: RIBA / Interest

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ISLAM : SOLUTION TO FAILURE OF CAPITALISM?

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  1. ISLAM:SOLUTION TO FAILURE OF CAPITALISM? by Nihal Javed

  2. Agenda • Why Capitalism Failed? • Root of Global Financial Crisis • ISLAM – A Comprehensive Solution • ISLAMIC MODEL OF ECONOMICS • Conclusion • References

  3. Why Capitalism Failed? • Model based on greed: RIBA / Interest • Exploitation of resources to maximize profits • Societal benefit not considered • Welfare of a few elite at the cost of: • Massive poverty worldwide • Imbalance of wealth • Lack of justice • Spread of corruption • Irresponsible lending • Non – Production Based economy UNJUST SYSTEM BASED ON OPPRESSION OF THE WEAK

  4. Root of Global Financial Crisis ARTIFICIAL MONEY GENERATION & EXCESSIVE GAMBLING

  5. ISLAM – A Comprehensive Solution • What is Islam? • Tawheed, Religion of all prophets • Prophet Muhammad PBUH • Quran: Instruction Manual from our Creator • Divine Guidance from cradle to the grave • From Ibadah, Fasting, Pilgrimage, Economics, Business, to Marital relations, bathroom etiquettes • Applying Divine Laws and guidance ensures success in this life and the next ISLAM: A COMPLETE WAY OF LIFE

  6. ISLAMIC MODEL OF ECONOMICS • Interest (RIBA) Forbidden • “Allah has permitted trade and has forbidden interest” [Quran 2:275] • “O you who have believed, do not consume usury, doubled and multiplied, but fear Allah that you may be successful.” [Quran 3:130] • Profit – Loss Sharing Model • One party does not assume all the risk (like conventional) • No reward generated w/out risk • Leads to financers carefully assessing risk • Production Based Model • Cannot generate money out of nothing (recycling money through interest) • Promotes “real” growth of economy (Actual goods produced) • Prohibits gambling by third parties • One of the main causes of Financial Crisis – Excessive hedging, speculation, gambling • Provides Implementable Solution • Not just conceptual but practical and applicable • Success demonstrated in History • Commands transactions be sale / lease based (not imaginary) • Products: Murabaha, ijarah, salam, istisna etc

  7. Conclusion • Islamic Economic Model based on the Divine guidance • addresses all the reasons why Capitalism failed • Implementation would ensure a just and balanced system that would benefit mankind as a whole • Solution to eradicating poverty, corruption, injustice • Islam is the submission to the Will of God Almighty • The complete way of live – Governs mans relationship with his Lord, and with other men • Insure yourself against Hellfire by accepting Islam and succeed in this world and the next! ISLAM: SOLUTION forPEACE, SUCCESS & JUSTICE

  8. Refrences • “Islamic Finance: A Therapy for Healing the Global Financial Crisis” by MirantiKartika Dewi1and Ilham Reza Ferdian • http://en.wikipedia.org/wiki/Riba

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