01-13-2007, 05:00 PM
<font size="1"><font color="green"><div align="left">Much discussion has been done on banking but what I suggest is to read the subject in depth and know that how the financial engineering principles of banking can be moulded according to Islamic principles. The most important conept which that every muslim should memorize in this modern age is that he should change the modern inventions and theories according to Islamic laws and should not change the islamic laws according to modern inventions and theories. I shall try my best to discuss the topic of banking in depth and discuss its Islamic status.
The great work in this regard was done by the prominent Muslim Scholar of subcontinent Ala Hazrat Imam Ahmed Raza Khan Fazil Al-Barelwi in 1914, at a time when banks played no significant role in the economy. No doubt, it was Aâlahazrat Imam Ahmad Raza Khan Barelvi who was able to peep into future and suggest boosting up the banking industry before hand. Aâlahazrat Fazil Barelvi through his book published in 1912, presented peerless points for the economic development of Muslim brethren. Some of those points are
1. Barring the affairs wherein Government is involved, the Muslims should decide all their disputes mutually so that millions of rupees, which are being spent over litigations, may be saved.
2. The affluent Muslims of Bombay, Calcutta, Rangoon, Madras and Hyderabad should open banks for other poor Muslims.
3. Muslims should not purchase anything from anybody except Muslims.
4. The sciences of Islam should be propagated and publicized,
Through his first point, Aâlahazrat Fazil Barelvi has propounded the theory of savings. He has realized the significance of savings and has made people to realize it. In most of the under-developed countries, the rate of saving varies from 5 to 8%. Now the economic experts have declared that for economic development of the country, saving to the tune of 15% of the national income is a must. The importance of savings over-shadowed the world in 1936 when Lord J.M. Keynes of England presented his "Theory of Savings & Investment", which proved successful in overcoming the international depression. In short, according to Keynes, saving is all. It is equal to investment according to his Equation. Thus, more saving, more investment; more investment, more development. For this theory of Saving & Investment, Prof. J. M. Keynes was honored by England and the most prestigious title of "Lord" was conferred on him. Prof. Rafiullah Siddiqui has so nicely and so rightly quipped that Prof. J. M. Keynes was honored in 1936 for what was already pointed out by Prominent Muslim Scholar Aâlahazrat Ahmad Raza Khan in 1912. Who deserved and who bagged the honor, is thus to be seen. Yet, it may be taken for granted that Aâlahazrat Ahmad Raza Khan would not accept such an honor from British even if he were presented one.
Secondly, Aâlahazrat Fazil Barelvi presented the theory of opening banks. Needless to mention that banks in the eyes of Aâlahazrat Fazil Barelvi were meant to be interest-free banks. History of banking is known to all of us. Ala Hazrat Fazil Barelvi suggested and talked of opening banks in 1912, at a time when there were only a few banks in India, in big cities, and nobody could foresee then that after a lapse of three or four decades, the importance of banks would assume so much proportion. No doubt, it was Aâlahazrat Fazil Barelvi who was able to peep into future and suggest boosting up the banking industry before hand.
bank is an institution through which the savings of the masses are deployed over productive investment. It is bank that collects pennies but provides pounds. Banks help the people create tendency of saving. Being a great economist. Aâlahazrat Fazil Barelvi well realized the hazards of hoarding and advocated for the development of the banking industry.
To the misfortune of Muslims, what was pinpointed by Aâlahazrat Fazil Barelvi for the benefit of Muslims, was utilized by non-Muslims. Second World War had badly ruined Germany, France, Italy etc. The economy of these European countries was crippled. European Common Market (E.C.M) consisting of six European countries came into existence. It achieved marvelous success and the entire World witnessed that it changed the entire story. The staggering economy of these countries mustered a sudden boom and the German mark became the powerful currency of the world. After all, what was this E.C,M.? It was a practical shape of the guidelines given by Aâlahazrat Fazil Barelvi just on the lines that Muslims should make purchases from Muslims only. Even today, if the Muslim countries unite and follow such a policy, luck will smile upon them.
Now come to the fourth point. It is regarding the publicity of Islamic sciences. When theories of economics are going on, how far it is desirable to talk of Islamic sciences or religion. A Mawlawi always remains a Mawlawi-some people may think. Some of the scholars have gone to say that this fourth point is not in regard to economics. With due respect to those scholars, I would like to say that they have hastened to observe like so, perhaps because of its appearance.Though all of those scholars have succeeded in realizing the importance of this point but have failed to link it with economic theories.
To my mind, this point is all the more important. Everybody knows that there is lot of difference between theory and practice. Implementation is an upheaval task. The first three points of Aâlahazrat Fazil Barelvi provide a theoretical approach. The fourth one provides a pragmatic approach. It must be borne in mind that Aâlahazrat Fazil Barelvi has introduced what we may call Muslim Economics. He has talked of benefit and betterment of only Muslims. From this angle, all the four points are inter-connected. The first point of Aâlahazrat Fazil Barelvi is regarding mutual settlement of their disputes. The idea is so nice but its implementation is fairly difficult. As says Adam Smith, "man is the born servant of self interest". Everybody wants to gain. Nobody wants to lose. In quest of gain, man runs after the courts headlong. He runs and runs towards the courts till he gets a gain what he calls justice. Such a race towards the gain makes the litigation time-consuming as well as money-consuming. Now Aâlahazrat Fazil Barelvi speaks of preaching and teaching Islamic sciences to the people. He means to say that spirit of Islam must prevail upon the Muslims. Aâlahazrat Fazil Barelvi goes to say that such an abrupt race of litigation can be controlled only with the spirit of Islam. Under true spirit of Islam, Muslims shall prefer to get their disputes decided only by their Muftis whom they would consider as heirs of Holy Prophet and regarding Holy Prophet (Allahâs Grace and Peace be upon him), the Holy Qurâan declares as under-
"By Allah, they shall not be Muslims unless they make you HÃ kim in matter of their disputes and unless they accept your decision by heart and feel no hindrance whatsoever there from in their hearts."
Thus, a true Muslim shall be duly satisfied with the decision of a Mufti regardless of the fact whether he remains a gainer or loser. He would accept the decision by heart. Nor would he take it as point of prestige, as a true Muslim wants nothing but what Allah and His Holy Prophet (Allahâs Grace and Peace be upon him) want for him. He would not knock at the doors of the court at all. A short meeting with a Mufti can solve a long dispute. Thus, it would be seen that the fourth point advanced by Aâlahazrat Fazil Barelvi is very much linked with the theory of mutual settlements Muslims by avoiding litigation with a view to ensuring large savings.
The second point is of opening Muslim banks. Muslims would like to help Muslims only when they are taught to help them in terms of Islamic sciences, that is, in light of Holy Qurâan and Hadith. Interest is a prize of exploitation. Muslims would refrain from accepting interest if they are told that usury is haram (strictly forbidden) according to Holy Qurâan and whosoever accepts interest, should be ready to fight with Allah on the Day of Judgment. Only through the injunction of Islamic spirit, which flows from the knowledge of Islamic sciences attained through the study of Islamic books or through the company of Islamic savants, Muslims can agree to opening of interest-free banks and usury can be put an end to. If the rich people open banks out of their riches, the poor people will get rid of their poverty to a great extent. First, the poor will be able to get employment in various projects financed by banks. Secondly, the poor section will be able to secure interest-free loans from the banks, which they would get otherwise at a heavy rate of interest. Thus, the second and fourth points of Aâlahazrat Fazil Barelvi are well linked together.
Muslims should make purchases from Muslims only â is the third point. It does not purport to say that Muslims should sell to Muslims only. Aâlahazrat Fazil Barelvi is restricting outgoings only of Muslims. Unless the Muslims are taught of their religion, nothing can be achieved in this field. A person, who has no knowledge of Islamic studies, is western-minded, would hardly purchase anything from Muslims. He would be addicted to using foreign goods and would not hesitate to purchase them from any corner. Nowadays, it is seen that those who have craze for using foreign goods, may it be, cigarette, Coke or anything like that, help the foreign companies earn a lot of foreign exchange. A Muslim would make purchases from Muslims only when it is impressed upon him that Holy Qurâan declares
(Space for Arabic script) "Innam al-Moâminoona Ikhwatun"
That is, "Muslim and a Muslim are brethren." Unless he treats the other Muslim as his brother, he would not extend him a brotherly-treatment. Moreover the teachings of Islam shall bear wide repercussions on the standard of trade. No trader would like to give short weight as it is forbidden in Islam. No trader would make any adulteration of any kind, as it is forbidden in Islam. No trader would try to conceal defect, if any, in his commodity as it is forbidden in Islam. No trader would resort to unnecessary hoarding of stock as it is forbidden in Islam. No trader would allow unnecessary bargaining in price as it is forbidden in Islam. In this manner, under the yoke of Islam, trade will wear a bloomy look. If Muslims undertake to make purchases from Muslims only and if Islamic spirit prevails, then a Muslim will not be able to get wine, because no Muslim would like to sell it as it is forbidden in Islam. In this way, not only the trade will flourish but it will also bring about a flawless society.
So, it is evident that all the four points of Aâlahazrat Fazil Barelvi are coherent and co-related insofar as Muslim Economics is concerned. As I have been associated with Economics for only last three to four years, in order to get my post graduation I had a right to study Aâlahazrat Fazil Barelvi in this field and so I did. I have no hesitation to say that before the insight of Aâlahazrat Fazil Barelvi in the field of Economics, I find myself no better than a big zero. </div id="left"> </font id="green"> </font id="size1">
The great work in this regard was done by the prominent Muslim Scholar of subcontinent Ala Hazrat Imam Ahmed Raza Khan Fazil Al-Barelwi in 1914, at a time when banks played no significant role in the economy. No doubt, it was Aâlahazrat Imam Ahmad Raza Khan Barelvi who was able to peep into future and suggest boosting up the banking industry before hand. Aâlahazrat Fazil Barelvi through his book published in 1912, presented peerless points for the economic development of Muslim brethren. Some of those points are
1. Barring the affairs wherein Government is involved, the Muslims should decide all their disputes mutually so that millions of rupees, which are being spent over litigations, may be saved.
2. The affluent Muslims of Bombay, Calcutta, Rangoon, Madras and Hyderabad should open banks for other poor Muslims.
3. Muslims should not purchase anything from anybody except Muslims.
4. The sciences of Islam should be propagated and publicized,
Through his first point, Aâlahazrat Fazil Barelvi has propounded the theory of savings. He has realized the significance of savings and has made people to realize it. In most of the under-developed countries, the rate of saving varies from 5 to 8%. Now the economic experts have declared that for economic development of the country, saving to the tune of 15% of the national income is a must. The importance of savings over-shadowed the world in 1936 when Lord J.M. Keynes of England presented his "Theory of Savings & Investment", which proved successful in overcoming the international depression. In short, according to Keynes, saving is all. It is equal to investment according to his Equation. Thus, more saving, more investment; more investment, more development. For this theory of Saving & Investment, Prof. J. M. Keynes was honored by England and the most prestigious title of "Lord" was conferred on him. Prof. Rafiullah Siddiqui has so nicely and so rightly quipped that Prof. J. M. Keynes was honored in 1936 for what was already pointed out by Prominent Muslim Scholar Aâlahazrat Ahmad Raza Khan in 1912. Who deserved and who bagged the honor, is thus to be seen. Yet, it may be taken for granted that Aâlahazrat Ahmad Raza Khan would not accept such an honor from British even if he were presented one.
Secondly, Aâlahazrat Fazil Barelvi presented the theory of opening banks. Needless to mention that banks in the eyes of Aâlahazrat Fazil Barelvi were meant to be interest-free banks. History of banking is known to all of us. Ala Hazrat Fazil Barelvi suggested and talked of opening banks in 1912, at a time when there were only a few banks in India, in big cities, and nobody could foresee then that after a lapse of three or four decades, the importance of banks would assume so much proportion. No doubt, it was Aâlahazrat Fazil Barelvi who was able to peep into future and suggest boosting up the banking industry before hand.
bank is an institution through which the savings of the masses are deployed over productive investment. It is bank that collects pennies but provides pounds. Banks help the people create tendency of saving. Being a great economist. Aâlahazrat Fazil Barelvi well realized the hazards of hoarding and advocated for the development of the banking industry.
To the misfortune of Muslims, what was pinpointed by Aâlahazrat Fazil Barelvi for the benefit of Muslims, was utilized by non-Muslims. Second World War had badly ruined Germany, France, Italy etc. The economy of these European countries was crippled. European Common Market (E.C.M) consisting of six European countries came into existence. It achieved marvelous success and the entire World witnessed that it changed the entire story. The staggering economy of these countries mustered a sudden boom and the German mark became the powerful currency of the world. After all, what was this E.C,M.? It was a practical shape of the guidelines given by Aâlahazrat Fazil Barelvi just on the lines that Muslims should make purchases from Muslims only. Even today, if the Muslim countries unite and follow such a policy, luck will smile upon them.
Now come to the fourth point. It is regarding the publicity of Islamic sciences. When theories of economics are going on, how far it is desirable to talk of Islamic sciences or religion. A Mawlawi always remains a Mawlawi-some people may think. Some of the scholars have gone to say that this fourth point is not in regard to economics. With due respect to those scholars, I would like to say that they have hastened to observe like so, perhaps because of its appearance.Though all of those scholars have succeeded in realizing the importance of this point but have failed to link it with economic theories.
To my mind, this point is all the more important. Everybody knows that there is lot of difference between theory and practice. Implementation is an upheaval task. The first three points of Aâlahazrat Fazil Barelvi provide a theoretical approach. The fourth one provides a pragmatic approach. It must be borne in mind that Aâlahazrat Fazil Barelvi has introduced what we may call Muslim Economics. He has talked of benefit and betterment of only Muslims. From this angle, all the four points are inter-connected. The first point of Aâlahazrat Fazil Barelvi is regarding mutual settlement of their disputes. The idea is so nice but its implementation is fairly difficult. As says Adam Smith, "man is the born servant of self interest". Everybody wants to gain. Nobody wants to lose. In quest of gain, man runs after the courts headlong. He runs and runs towards the courts till he gets a gain what he calls justice. Such a race towards the gain makes the litigation time-consuming as well as money-consuming. Now Aâlahazrat Fazil Barelvi speaks of preaching and teaching Islamic sciences to the people. He means to say that spirit of Islam must prevail upon the Muslims. Aâlahazrat Fazil Barelvi goes to say that such an abrupt race of litigation can be controlled only with the spirit of Islam. Under true spirit of Islam, Muslims shall prefer to get their disputes decided only by their Muftis whom they would consider as heirs of Holy Prophet and regarding Holy Prophet (Allahâs Grace and Peace be upon him), the Holy Qurâan declares as under-
"By Allah, they shall not be Muslims unless they make you HÃ kim in matter of their disputes and unless they accept your decision by heart and feel no hindrance whatsoever there from in their hearts."
Thus, a true Muslim shall be duly satisfied with the decision of a Mufti regardless of the fact whether he remains a gainer or loser. He would accept the decision by heart. Nor would he take it as point of prestige, as a true Muslim wants nothing but what Allah and His Holy Prophet (Allahâs Grace and Peace be upon him) want for him. He would not knock at the doors of the court at all. A short meeting with a Mufti can solve a long dispute. Thus, it would be seen that the fourth point advanced by Aâlahazrat Fazil Barelvi is very much linked with the theory of mutual settlements Muslims by avoiding litigation with a view to ensuring large savings.
The second point is of opening Muslim banks. Muslims would like to help Muslims only when they are taught to help them in terms of Islamic sciences, that is, in light of Holy Qurâan and Hadith. Interest is a prize of exploitation. Muslims would refrain from accepting interest if they are told that usury is haram (strictly forbidden) according to Holy Qurâan and whosoever accepts interest, should be ready to fight with Allah on the Day of Judgment. Only through the injunction of Islamic spirit, which flows from the knowledge of Islamic sciences attained through the study of Islamic books or through the company of Islamic savants, Muslims can agree to opening of interest-free banks and usury can be put an end to. If the rich people open banks out of their riches, the poor people will get rid of their poverty to a great extent. First, the poor will be able to get employment in various projects financed by banks. Secondly, the poor section will be able to secure interest-free loans from the banks, which they would get otherwise at a heavy rate of interest. Thus, the second and fourth points of Aâlahazrat Fazil Barelvi are well linked together.
Muslims should make purchases from Muslims only â is the third point. It does not purport to say that Muslims should sell to Muslims only. Aâlahazrat Fazil Barelvi is restricting outgoings only of Muslims. Unless the Muslims are taught of their religion, nothing can be achieved in this field. A person, who has no knowledge of Islamic studies, is western-minded, would hardly purchase anything from Muslims. He would be addicted to using foreign goods and would not hesitate to purchase them from any corner. Nowadays, it is seen that those who have craze for using foreign goods, may it be, cigarette, Coke or anything like that, help the foreign companies earn a lot of foreign exchange. A Muslim would make purchases from Muslims only when it is impressed upon him that Holy Qurâan declares
(Space for Arabic script) "Innam al-Moâminoona Ikhwatun"
That is, "Muslim and a Muslim are brethren." Unless he treats the other Muslim as his brother, he would not extend him a brotherly-treatment. Moreover the teachings of Islam shall bear wide repercussions on the standard of trade. No trader would like to give short weight as it is forbidden in Islam. No trader would make any adulteration of any kind, as it is forbidden in Islam. No trader would try to conceal defect, if any, in his commodity as it is forbidden in Islam. No trader would resort to unnecessary hoarding of stock as it is forbidden in Islam. No trader would allow unnecessary bargaining in price as it is forbidden in Islam. In this manner, under the yoke of Islam, trade will wear a bloomy look. If Muslims undertake to make purchases from Muslims only and if Islamic spirit prevails, then a Muslim will not be able to get wine, because no Muslim would like to sell it as it is forbidden in Islam. In this way, not only the trade will flourish but it will also bring about a flawless society.
So, it is evident that all the four points of Aâlahazrat Fazil Barelvi are coherent and co-related insofar as Muslim Economics is concerned. As I have been associated with Economics for only last three to four years, in order to get my post graduation I had a right to study Aâlahazrat Fazil Barelvi in this field and so I did. I have no hesitation to say that before the insight of Aâlahazrat Fazil Barelvi in the field of Economics, I find myself no better than a big zero. </div id="left"> </font id="green"> </font id="size1">
