ISLAMIC ECONOMIC SYSTEM An ecosystem of (i) economic sciences*, (ii) natural sciences, (iii) social sciences and (iv) spiritual sciences for advancement of justice and human welfare Founded on “principles” not “interests” Mohammad Naeem Khan , FCA Petroleum Economist Eni Pakistan Ltd *Science refers to irreversible laws
1 Principles of Islamic economic system
Devine Economic Plan Malik 2 وَهُوَ الَّذِي جَعَلَكُمْ خَلاَئِفَ الأَرْضِ وَرَفَعَ بَعْضَكُمْ فَوْقَ بَعْضٍ دَرَجَاتٍ لِّيَبْلُوَكُمْ فِي مَا آتَاكُمْ And Allah has made you successors in the land and raised some of you above others in different levels, to test you for what is given to you. (Araf 165) فَإِذَا مَسَّ الْإِنسَانَ ضُرٌّ دَعَانَا ثُمَّ إِذَا خَوَّلْنَاهُ نِعْمَةً مِّنَّا قَالَ إِنَّمَا أُوتِيتُهُ عَلَى عِلْمٍ بَلْ هِيَ فِتْنَةٌ وَلَكِنَّ أَكْثَرَهُمْ لَا يَعْلَمُونَ When a man gets in trouble he cries for help of Allah, and when he is granted favors, he says “I have got it due to my knowledge”. In fact wealth is a trial but most of people do not know. (Zumr 49) Not related to efforts Zumr 49 Wealth is a test Anam 165/Nahal 71 وَاللّهُ فَضَّلَ بَعْضَكُمْ عَلَى بَعْضٍ فِي الْرِّزْقِ And Allah has made some of you excel others in wealth. (Nahal 71)
Output/Resource ( قوت ) Outcome ( مقصد ) Work ( كام ) Mission of Islam ( اسلام كا نصب العين ) Human Welfare انسانيت كى فلاح Spiritual Power جانى جهاد Economic Power ما لى جهاد Piety نفس كا جهاد Unity اجتمائى جهاد Prayer صلاة Charity زكاة و انفاق Fasting روزه Hajj حج Social System معاشرتى نظام Economic System معاشى نظام Political System سياسى نظام Spiritual System روحانى نظام
Target of Islam ( اسلام كا نصب العين ) Good deeds عمل صالح Belief مقصد حيات إِنَّ الَّذِينَ آمَنُواْ وَعَمِلُواْ الصَّالِحَاتِ وَأَقَامُواْ الصَّلاَةَ وَآتَوُاْ الزَّكَاةَ لَهُمْ أَجْرُهُمْ عِندَ رَبِّهِمْ وَلاَ خَوْفٌ عَلَيْهِمْ وَلاَ هُمْ يَحْزَنُونَ (Baqra 277) وَعَدَ اللَّهُ الَّذِينَ آمَنُوا مِنكُمْ وَعَمِلُوا الصَّالِحَاتِ لَيَسْتَخْلِفَنَّهُم فِي الْأَرْضِ كَمَا اسْتَخْلَفَ الَّذِينَ مِن قَبْلِهِمْ وَلَيُمَكِّنَنَّ لَهُمْ دِينَهُمُ الَّذِي ارْتَضَى لَهُمْ وَلَيُبَدِّلَنَّهُم مِّن بَعْدِ خَوْفِهِمْ أَمْنًا (Noor 55) Those who, if We give them power in the land, establish regular prayer and give regular charity, enjoin the right and forbid wrong: with Allah rests the end (and decision) of (all) affairs. (Hajj 41) الَّذِينَ إِن مَّكَّنَّاهُمْ فِي الْأَرْضِ أَقَامُوا الصَّلَاةَ وَآتَوُا الزَّكَاةَ وَأَمَرُوا بِالْمَعْرُوفِ وَنَهَوْا عَنِ الْمُنكَرِ وَلِلَّهِ عَاقِبَةُ الْأُمُورِ Economic System ( رزق ) اقامت زكاة Morality System ( شريعة ) اقامت صلاة روح كى غزا جسم كى غزا Accumulation of Wealth ( منكر ) دولت كا ارتكاز X Distribution of wealth ( معروف ) دولت كى تقسيم The focus of Islamic economic system is to stop the lust of possession and the lust of pleasure – twin plagues responsible for killing the humanity
Economic Principles of Islam Earning Side آمدنى Usage Side مصارف َأَحَلَّ اللّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا Allah has allowed business and forbidden usury (Baqra 275) Falahi Nizam Istasali nizam Biological communities are highly efficient in energy capture and recycling, living exemplars of the motto, "Waste not, want not." Energy and materials are continuously recycled for use and reuse within and between cells, organisms, and species with a minimum of loss, as the wastes of one become the resources of another. Frugality and sharing are the secret of life's rich abundance , a product of its ability to capture, use, store, and share available material and energy with extraordinary efficiency As suggested by Michael Albert in “Participatory Economics” there are the 4 Maxims of wealth distribution in a just and equitable system. 1. DISTRIBUTIVE MAXIM 1. Payment according to personal contribution and the contribution of property owned. 2. DISTRIBUTIVE MAXIM 2. Payment according to personal contribution. 3. DISTRIBUTIVE MAXIM 3. Payment according to effort. 4. DISTRIBUTIVE MAXIM 4. Payment according to need. State ( حكومت ) Distribution سدباب تكاثر Individual ( فرد ) Frugality & Sharing عفو (Tauba 34-35) وَالَّذِينَ يَكْنِزُونَ الذَّهَبَ وَالْفِضَّةَ وَلاَ يُنفِقُونَهَا فِي سَبِيلِ اللّهِ فَبَشِّرْهُم بِعَذَابٍ أَلِيمٍ (34) يَوْمَ يُحْمَى عَلَيْهَا فِي نَارِ جَهَنَّمَ فَتُكْوَى بِهَا جِبَاهُهُمْ وَجُنوبُهُمْ وَظُهُورُهُمْ هَذَا مَا كَنَزْتُمْ لأَنفُسِكُمْ فَذُوقُواْ مَا كُنتُمْ تَكْنِزُونَ But if you do not stop taking usury, then be ready for war with Allah and His Messenger (Baqra 279) فَإِن لَّمْ تَفْعَلُواْ فَأْذَنُواْ بِحَرْبٍ مِّنَ اللّهِ وَرَسُولِهِ They ask you how much they should spend; Say: "What is beyond your needs." Thus Allah makes clear to you His revelations: In order that you may ponder. (Baqra 219) وَيَسْأَلُونَكَ مَاذَا يُنفِقُونَ قُلِ الْعَفْوَ كَذَلِكَ يُبيِّنُ اللّهُ لَكُمُ الآيَاتِ لَعَلَّكُمْ تَتَفَكَّرُونَ (Baqra 219) كَيْ لَا يَكُونَ دُولَةً بَيْنَ الْأَغْنِيَاء مِنكُمْ “… in order that wealth may not become confined to the rich amongst you”. (Hashar 7) Business بيع Usury ربا + -
Prophet (PBUH) said: "Whoever asks for money while he has what suffices him has asked for a lot of Hellfire's embers." People asked him, "What is the sufficient amount of money above which one should not ask?" He said, " The amount he needs for his lunch and dinner ." (Abu Dawud)
He also said: "Whoever asks people for their money to increase his wealth , has asked for embers, so let him ask a little or a lot”.
A man came to the Prophet (PBUH) and said, "O Messenger of Allah! If I was killed in Allah's cause, observing patience, awaiting Allah's reward, attacking, not retreating, would Allah forgive my sins?" The Prophet (PBUH) said, "Yes, except for the debt." The Prophet (PBUH) said, " A believer's soul is attached to his debt till it is paid. “
A dead person was brought to the Prophet so that he might lead the funeral prayer for him. He (PBUH) asked, "Is he in debt?" When the people replied in the negative, he led the funeral prayer. Another dead person was brought and he asked, "Is he in debt?" They said, "Yes." He (refused to lead the prayer and) said, "Lead the prayer of your friend." Abu Qatada said, "O Allah's Apostle! I undertake to pay his debt." Allah's Apostle then led his funeral prayer. No. 2154 (Sahih Bokhari)
Islam abhors DEBT and strongly discourages it
Allah will deprive usury of all blessing, but will increase benefits of charity" (Baqra 276);
If you do not stop taking usury, then be ready for a war with Allâh and His Messenger (Baqra 279)
Abdullah ibn Hanjalah related that the Prophet said: A dirham of Riba (interest) knowingly taken by a man is a sin worse than committing Zina (fornication) 36 times (Ahmad, Daraqutni).
Narrated Jabir ibn Abdullah: Allah's Messenger cursed the accepter of interest and its payer , and one who records it , and the two witnesses ; and he said: They are all equal (Muslim).
Hazrat Abu Hurairah r.a. reported that the Prophet said : A time will certainly come when none will remain who will not devour usury . If he does not devour it, its vapors will fall on him [Ahmed,Abu Dawood,Nisai,Ibn Majah]
Islam prohibits and strongly CONDEMNS usury or RIBA.
Primary focus of Islam is on the spiritual System (test of Taqwa/free will)
Legal system provides only safety valve for safeguarding basic human rights
Keeping excess wealth and generating income from it is allowed legally but spiritually is it detested.
Dimensions of Islamic Economic System Restricting evils/crimes Elevating ethical/ spiritual values Legal System Limited Capitalism (surplus wealth for personal use) Spiritual System Spiritual Socialism (human rights on surplus wealth) Treatment system (Repair/Maintenance) Restricts luxury & wealth accumulation Immune System (Regulatory) Channels excess wealth to needy Inter-dependent & Inter-connected (Synthesis)
Individual Distribution (Arteries) State Collection & Re-distribution (Veins) Economics: A life blood system of Society
Money Labor + Capital (Entrepreneurship) Land Middlemen Machine Partnership (Labor + Capital) Status of Sources of Income Ideal Permitted Restricted Prohibited Medium of Exchange
% of contribution Distribution Channels ( عبادت ) Voluntary Charity ( انفاق ) Entire wealth in access of basic needs Inheritance ( وراثت ) Strictly in accordance with injunction of Quran Zakat ( زكاة ) Payable on wealth of individual Taxes ( تيكس ) Taxes imposed by state to provide basic needs of its citizens Compulsory واجبات Marriage payment and penalties on certain faults
Stock Exchange Transactions X X
Limited liability concept in anti-Islam
Primary purpose of the transaction is to make quick money rather than long term investment
Mostly investment is made from loan taken from banks or brokers
It is a gambling business (gain at the loss of someone else
Short term focus leads to extreme damage of public interest.
Y Y Trade* Risk capital investment at profit/loss + Work + Public benefit *Limited liability is an exclusion Public Benefits Does the activity lead to employment/resource generation or brings harm to the public interest Interest based Load taken/given at interest with security against fully insured property (margin financing) Gambling Profit/loss without efforts at the expense of someone else
Property business (Plots) X X As per Islamic law house is right of every Muslim. Anyone trying to grab the property for the purpose of trade/profit making is haram because it is a gamble (profit/loss at the expense of others) and it is also not a business/trade as it does not lead to any fruitful business activity which entails hardwork. As a consequence of profit making price of the property rise and takes it out of the reach of legitimate buyer for building his house ? Y Trade* Risk capital investment at profit/loss + Work + Public benefit *Limited liability is an exclusion Public Benefits Does the activity lead to employment/resource generation or brings harm to the public interest Interest based Loan taken/given at interest with security against fully insured property (margin financing) Gambling Profit/loss without efforts at the expense of someone else
State Financial Crime: Inflation 100 147 216 317 466 685 1,006 1,479 2,172 3,192 4,690 0 1,000 2,000 3,000 4,000 5,000 0 5 10 15 20 25 30 35 40 45 50 An item costing Rs 100 now costs Rs 4,690 in year 50 @8% inflation rate Year Value “Rs”
Faceless dragon eating humanity Corporation: An ingenious device for obtaining individual profit without individual responsibility . Moto: Profit, growth & Competition and amorality, dehumanization, opposition to nature. لاَ يُكَلِّفُ اللّهُ نَفْسًا إِلاَّ وُسْعَهَا لَهَا مَا كَسَبَتْ وَعَلَيْهَا مَا اكْتَسَبَتْ Allah does not impose upon anyone a duty but to the extent of his ability; He gets reward for every good deed, and suffers for every ill that he earns. (Barea 286) Islam does not permit limitation of liability. Every individual is fully responsible for his deeds وَلَا تَزِرُ وَازِرَةٌ وِزْرَ أُخْرَى وَإِن تَدْعُ مُثْقَلَةٌ إِلَى حِمْلِهَا لَا يُحْمَلْ مِنْهُ شَيْءٌ وَلَوْ كَانَ ذَا قُرْبَى Nor can a bearer of burdens bear another's burdens if one heavily laden should call another to (bear) his load. Not the least portion of it can be carried (by the other). Even though he be nearly related. (Fatir 18) Resources زرائ آمدنى Credit قرض Judges جج Law قانون Politicians سياست دان Jobs ملازمت Media ابلاغ Trade كاروبار Commerce تجارت Production بيداوار Corporate Capitalist Citizen (limited liability) (1886)
Banks were created for taking public deposit and lending at interest and investment in treasury bonds, derivatives, securities etc.
Interest is against natural laws. Proper functioning of natural laws and economy implies a zero rate of interest
Islam detests borrowing even at zero interest rate.
Banking was conceived in iniquity (against natural law) and was born in sin (for the benefit of rich).
An interest rate of zero means the end of the money & banking system.
Does Islam allow any Banking System?
And I sincerely believe with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale Thomas Jefferson in a letter to John Taylor 28 May 1816, Writings (1984) New York: Literary Classics of the United State
Three economic modes of Muslims WIDE RANGE OF STRUGGLE
Hallal means of living
Distribution of entire excess wealth
Hardy any situation of Zakat
Moral (Height of spiritual living)
Hallal means of living
Pays Zakat and other compulsory dues
Charity (infaq) up to the level of Taqwa
Legal (Minimum threshold of living )
No distinction of hallal/harram
Does not care to pays Zakat/other dues
Charity for image building
Extravagant and luxurious lifestyle
Stinginess/wealth piling up
Illegal (State of practical kufr)
Mirror view before/After Implementation Cowardice Ignorance Tensions Fear Hunger Servitude Debt Threats Tyranny Savagery Cut-throat competition Self-centeredness Criminality Robbery Theft Racism Before (Savage Society) Exploitation Deprivation Intellect Compassion Care of kin Affection Sincerity Freedom Fortitude Munificence Zeal & Endeavor Piety Courage Happiness Justice Content Satisfaction Chastity Humility After (Natural Society) Harmony Non-contributory /Contributory Social Security Plan (Surplus Pool)
Summary of natural economic System of Islam
Islamic view is that “real economy” controls, and the money is only a “supportive function”. Protects labour/work.
Stop earning money through money and compels people to work and invest money in business ventures
Eliminates sources of unearned income (interest/speculation)
No protection to capital and uses wealth in real economic activities integrated with physical laws of nature.
Collect zakat (wealth tax) no tax on income or consumption.
It is responsibility of individuals for meeting needs of poor and social welfare of society
State is responsible for meeting basic needs of citizens and taking administration/legal measure for checking concentration of wealth in few hands.
Business in Islam is not an grabbing the opportunity but a “ Ibadah ” covered under the ethos of Islamic principles of life.
2 Principles of current economic system
Modern Economic Drivers
Economics is a Science of wealth (to teach selfishness). K.K Dewett
Economic is made to study “wealth” rather than “welfare”.
Whatever the economics is concerned with it is not concerned with:
Study of relation of real goods (physical science) and wealth (monetary science)
Study of relation of material welfare (of individual) and general welfare (of humanity).
Study of relation of “short term needs: and “long-term needs”
Islamic Economic Drivers BERNARD : Money is like an iron ring we've put through our noses. We've forgotten that we designed it, and it's now leading us around. I think it's time to figure out where we want to go - in my opinion toward sustainability and community - and then design a money system that gets us there.
Tax on income/ Consumption
Government Companies Individuals
Wealth Tax ( عبادت )
Guarantee basic human needs
Restricting wealth accumulation
Earned income ( محنت )
Restricts consumption ( اعتدال )
Distribute surplus wealth ( عبادت )
X X X Y Y “ Ownership/Competition” Short-term approach “ Trusteeship/Cooperation” Long-term approach
Profound change in the underlying dynamics:
Money and credit rather than goods/services had become the real economy
Energy and automation has become real contributor rather than manpower and animals
Taxes ( محصول ) Money ( كرنسى ) Credit ( قرض ) Gov. Deficit ( افراط زر ) Operates under physical/biological constraints Operates under unconstrained compound interest rate growth Matter ( ماده ) Natural (Real) Economy Money ( دولت ) Financial (Shadow) Economy Major problem of Humanity: Operating under incompatible Systems EXTREME FOCUS PRIMARY SECONDARY Founding father of discounting “Paul Samuelson in 1937” Organic Resources حياتى اشياء (Manpower, animals, plants) Inorganic Resources نامياتى اشياء (Natural Resources)
Framework of integrated human ecosystem فطرى اور انسانى قوانين كا ربط Biggest tragedy of our time is that modern priests (economists) do not know that something must be physically possible before it can be economically possible. X Y X X Social Process Demography Technology Economy Institutions Culture Information Ecological Process Primary production Populations Organic matter Nutrients Disturbances External Biological, Geological & Physical Conditions External Political & Economic Conditions Interactions Land use Land cover Production Consumption Disposal Human Systems انسانى قوانين Natural Systems فطرى قوانين
natural curve (natural resources) linear curve (machines) exponential curve (money) Time Growth Basic types of growth patterns a c b Curve a in figure represents an idealized form of the normal physical growth pattern in nature, which our bodies as well as those of plants and animals follow. We grow fairly quickly during the early stages of our lives, then begin to slow down in our teens, and usually stop growing physically when we are about twenty-one. Curve b represents a mechanical or linear growth pattern, e.g. more machines produce more goods, more coal produces more energy, etc. It is not so important for our analysis. It should be clear, however, that in a finite universe even this growth pattern will eventually create problems. Curve c represents exponential growth the most important and generally least understood growth pattern which may be described as the exact opposite to curve a in that it grows very slowly in the beginning, then accelerates continually faster and finally grows in an almost vertical fashion and gradual starts declining and eventually come to end. In the physical realm, this growth pattern usually occurs where things are out of order, where there is sickness, often leading to death. Cancer, for instance, follows an exponential growth pattern, and, using this analogy, interest may be seen as the cancer on our social and economic system. Since through our bodies we have only experienced the physical growth pattern of nature, which stops at an optimal size (curve a), it is difficult for human beings to understand the full impact of the exponential growth pattern in the material realm.
U.S. National Debt Clock US Population Current Interest Rate http://www.brillig.com/debt_clock/ As of 25 th January 2006 DEBT WHIRLEPOOL 77 times of national total now
Wayne A.M. Visser and Alastair McIntosh http://www.che.ac.uk/publications/usury.htm “ Organisations in the West with money to invest, especially those which like to consider themselves as being ethical, might have rather more to learn from Islam than is generally acknowledged. B y applying the Islamic approach, a lot of human misery could have been avoided . Interest Rate (8%) The economist sees economic activity as a function of infinite "money creation", rather than a function of finite “natural resources". 1 Impracticable (Financing Decisions) cc 1 Kg in year 1 Weight of Earth No of earths Kgs in year 2000
Un-natural (Investing Decisions)
Under discounting system, we need less and less quantities in future to survive.
Under natural system, we need a constant quantity of food to meet our biological needs
Hence, discounting concept is in conflict with nature
وَآتِ ذَا الْقُرْبَى حَقَّهُ وَالْمِسْكِينَ وَابْنَ السَّبِيلِ وَلاَ تُبَذِّرْ تَبْذِيرًا (26) إِنَّ الْمُبَذِّرِينَ كَانُواْ إِخْوَانَ الشَّيَاطِينِ وَكَانَ الشَّيْطَانُ لِرَبِّهِ كَفُورًا ***** And give to the relatives due and to the needy and the wayfarer, and do not squander wastefully. Surely the squanderers are the fellows of the devils and the satan is ever ungrateful to his Lord. (Isra 26-27) Outcome of modern economic system Explosion of Over-utilization كثرت استمال Explosion of Over-production كثرت بيداوار Explosion of Over-wastage كثرت ضياع Explosion of Over-supply كثرت ترسيل Explosion of Debt سودى كاروبار كا جال Explosion of Competition اندهى مقابله بازى
World Economy at Crossroad Industrial Economy Products economy Employment Industrial Economy Paper Economy Real Economy Social Principles Economic Principles
Primary products economy uncoupled from Industrial Economy
Industrial Economy uncoupled from Employment
Symbol economy disconnected from real economy
Economic principles (self-interest/short term focus) disconnection from social principles
Modern tragedy of Contradictory Laws Integral System X Self-Centered Overnight Profit Quick Usage "It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." Henry Ford Moral Laws Physical Laws Economic Laws
The Earth can no longer support the lifestyle of the cool hunting American-style consumer. We have sought, bought, spewed and devoured too much, too fast, too brazenly, and now we're about to pay. Economic "progress" is killing the planet . (Kellay Lason) Mind control
Sixty percent of the families in America can maintain their standards of living for only one month
The next 20% can maintain it for only three months.
That means that 80% of the population is living at an incredibly high level of economic insecurity
March towards Destruction? Each U.S citizen requires energy of 300 persons working round the clock
Lifecycle is no more sustainable 0% 20% 40% 60% 80% 100% 1850 1870 1890 1910 1930 1950 1970 p.79 BEYOND OIL. J. Gever et al. 1991 Fuel Labor Domesticated Animals Energy is now life blood of economy 6000 products (Fertilizers & pesticides!!!!) Oil is capitalism's crack cocaine Stacked presentation of work done over time in United States by labor, Domesticated animals, Fuels as a percentage of Total Horsepower in the Economy Wood Labor Domesticated Animals
http://lifeaftertheoilcrash.net/Research.html Importance of Energy How Much Human Energy Is Contained in One Barrel of Oil? *** 1 Barrel of Oil = 5,800,000 BTUs ** 1 Barrel of Oil = 23,200 Hours of Human Work Output Human work cost of 1 barrel of oil Rate per hour= US$ 8/hour Total cost= $185,600 per barrel equivalent human work Switchover is possible only when the oil cost increases $185,600/barrel Or Rupees 70,000/Litre
Greatest Threat to Life: Food Scarcity from planting, irrigation, feeding and harvesting, through to processing, distribution and packaging. In addition, fossil fuels are essential in the construction and the repair of equipment and infrastructure needed to facilitate this industry, including farm machinery, processing facilities, storage, ships, trucks and roads Pesticides (Gas)
FROM THE CAVES, TO THE MOON, TO THE CAVES Richard C. Duncan, Ph.D. Institute on Energy and Man, June 27, 1996 Even if the entire mass of the earth were petroleum, it would be exhausted in 500 years at 5% increase in rate of consumption. For addition 100 year 157 earths would be required (current production is 10 Trillion Ton/year)
فَكَأَيِّن مِّن قَرْيَةٍ أَهْلَكْنَاهَا وَهِيَ ظَالِمَةٌ فَهِيَ خَاوِيَةٌ عَلَى عُرُوشِهَا وَبِئْرٍ مُّعَطَّلَةٍ وَقَصْرٍ مَّشِيدٍ X How many populations have We destroyed, which were given to wrong-doing? They tumbled down on their roofs. And how many wells are lying idle and neglected, and castles lofty and well-built? (Hajj 45) X Story of Past Rebels “ Tower of Babel” Period of Namrood (let us revolt) 2500 BC
4 What should we do?
Penalties on various crimes War with Allah & Rasul Interest Economic Revenge (Qasas) Killing Political 100 Lashes Sex Social Disliking/Curse of Allah various Moral Action Crime Level
Limit growth and focus on wellbeing
Limit Debt & encourage entrepreneurs
Introduce zero rated debts
Impose Charge on money holding
Make speculation a criminal offence
Incentivise productive work and investment;
Tax Unearned Gains
Replace labor for energy use
Strengthen the social fabric of family and community
Lease land for living/business purposes
Steps for healing the money system The money system is like a cancer that consumes its host and ultimately destroys itself Healing the Money System “David C. Korten”: http://www.converge.org.nz/pirm/money.htm
Get rid of fashion (a bio-economic disease of the human mind )
Demand durable goods to be made still more durable by being designed so as to be repairable.
Get closer to the nature as possible
Join hands to fight for reform at state level
Final outcome It was thus becoming apparent that nature must, in the not far distant future, institute bankruptcy proceedings against industrial civilization, and perhaps against the standing crop of human flesh , just as nature had done many times to other detritus- consuming species following their exuberant expansion in response to the savings deposits their ecosystems had accumulated before they got the opportunity to begin the drawdown...[“Overshoot” ISBN 0-252-00988-6 ] "Drawdown" is the process by which we are using up the surrounding resources faster than they can be replaced. Transgressing the carrying capacity for one period lowers the carrying capacity thereafter, perhaps starting a downward spiral toward zero لِيُنفِقْ ذُو سَعَةٍ مِّن سَعَتِهِ وَمَن قُدِرَ عَلَيْهِ رِزْقُهُ فَلْيُنفِقْ مِمَّا آتَاهُ اللَّهُ لَا يُكَلِّفُ اللَّهُ نَفْسًا إِلَّا مَا آتَاهَا سَيَجْعَلُ اللَّهُ بَعْدَ عُسْرٍ يُسْرًا ( 7) وَكَأَيِّن مِّن قَرْيَةٍ عَتَتْ عَنْ أَمْرِ رَبِّهَا وَرُسُلِهِ فَحَاسَبْنَاهَا حِسَابًا شَدِيدًا وَعَذَّبْنَاهَا عَذَابًا نُّكْرًا (8) فَذَاقَتْ وَبَالَ أَمْرِهَا وَكَانَ عَاقِبَةُ أَمْرِهَا خُسْرًا (9) أَعَدَّ اللَّهُ لَهُمْ عَذَابًا شَدِيدًا فَاتَّقُوا اللَّهَ يَا أُوْلِي الْأَلْبَابِ الَّذِينَ آمَنُوا قَدْ أَنزَلَ اللَّهُ إِلَيْكُمْ ذِكْرًا ***** Let the man of means spend according to his means: and the man whose resources are restricted, let him spend according to what Allah has given him. Allah puts no burden on any person beyond what He has given him. After a difficulty, Allah will soon grant relief. And how many a community revolted against the ordinance of its Lord and His messengers and We took detailed accountability of their deeds and punished them severely. Then did they taste the evil result of their conduct, and the End of their conduct was great loss. (Talaq 7-10)
Globalization Deregulation Concentration MARKET ECONOMY Small & Local CAPITALIST ECONOMY Large & Global Global Financial System Global Corporation Culture & Choice Rules People Ownership POWER SHIFT: PEOPLE GLOBAL FINANCE Culture & Choice Rules Local Enterprises People Ownership Source: Life after the Dominance of Capital, by David C. Korten http://www.bke.hu/~kg_korny/altern/korten/kortpres.html X
Most frequent question is: Where is modern Islamic Economic System? Surprisingly, the Quran troughs the question back to us? Create it based on the guiding principles keeping in view needs and deeds of the society. Then keep on modifying it based on the emerging needs of the Humanity