|H. 3 Jumada I 1430||No: 08/28042009|
|M. Tuesday, 28 April 2009|
Current Global Recession is a Sign of Capitalism's End; Only Islam can Solve Economic Problem of Mankind
Hizb ut-Tahrir in Bangladesh organized an Economic Conference today at the National Press Club titled "Global Recession: Impact on Bangladesh - Islam's Economic Alternative". Three speeches were delivered on the following topics:
- Capitalism is inherently flawed and causes crises;
- Causes of current global recession and failure of the patchwork solutions of Capitalism;
- Only the Islamic economic system under the Khilafah "Caliphate" state can provide crisis-free economic justice
Chief Coordinator and Official Spokesman of Hizb ut-Tahrir in Bangladesh Mohiuddin Ahmed and members of the party Abu Hamza Al Mamun and Mahmudul Hasan Foyzi delivered the speeches. Professor Dr. Syed Golam Mowla, Kazi Murshedul Haque (Deputy Spokesman) and Mustafa Minhaz were present on the panel.
In the first speech delivered by Mahmudul Hasan Foyzi on ‘Capitalism is inherently flawed and causes crises,' the speaker highlighted that the fundamentals of the capitalist system are responsible for the current economic disaster. These include absolute freedom of ownership, focus on production rather than distribution, paper based currency, usurious banking system, and the financial sector based on speculation.
Second speaker Abu Hamza Al Mamun delivered his speech on ‘Causes of current global recession and failure of the patchwork solutions of Capitalism.' In his speech he said materialistic and consumption oriented thinking of capitalism is the main reason for the collapse of financial market of USA and later transformation of this crisis from US domestic crisis to a global crisis. USA reduced interest rate from 6.5% to 1% in 2001 when they were afraid that the economy will shrink. After that US credit market and related derivatives products attracted global investors. Later in 2005 when US federal reserve increased the interest rate, borrowers defaulted, which affected all sectors resulting in the global recession now. To solve the crisis, US-EU have taken multiple rescue packages, by printing money they wanted to reduce the liquidity crisis, reduction of interest rate and altering regulations - all of which have failed. This is because a patient can not be cured by its disease. Problem is capitalism itself. By saving the problem i.e. capitalism, no solution can be achieved.
Mohiuddin Ahmed in his speech titled ‘Only the Islamic economic system under the Khilafah "Caliphate" state can provide crisis-free economic justice' said the export sector in Bangladesh is now suffering due to the global recession as Bangladesh economy is run according to the capitalist system. As well as this the economy of Bangladesh is designed to serve the imperialist countries.
Mohiuddin Ahmed said it is time for the Muslims to throw away the capitalist system which is on its deathbed now. We have seen the collapse of communism aw well. Allah (SWT), the Creator of the Universe, gave us economic system free from crises and secures justice and tranquillity. Islam prohibits all the factors that lead to economic crises in the first place.
- Islam has prohibited interest in all its forms and mandated loans to the needy to assist them, without any interest or surcharge over their principal amount. Islam mandates that the treasury, the Bait ul-Maal, maintains a separate head to provide interest-free loans to the needy and farmers in order to assist them.
- Islam similarly prohibits selling of goods before the buyer takes possession, thus prohibiting transactions in goods that are not in possession. It has also prohibited transactions in financial instruments resulting from invalid contracts, as well as speculative trading, which are all allowed in the capitalist economy in the name of freedom of ownership.
- Islam mandates that only gold and silver are the monetary standard. Any paper currency issued in lieu of the monetary standard must be fully backed by gold and silver and fully convertible on demand. Consequently, paper currency of one country should not be tied to the currency of any other country. Rather each state's currency must be free of any other currency and have its own fixed, unalterable and intrinsic value.
- Islam further prohibits individuals, companies and corporations from ownership of items coming under the ambit of public ownership, such as petrol, minerals, energy sources, electrical energy etc. and charged the state with managing them in accordance with the Shari'ah rules.
In the end, Mohiuddin Ahmed invited everyone to come forward to establish Khilafah "Caliphate" state which will implement the Islamic economic system and ensure a safe, secure and crisis-free life for mankind.
Official Spokesman of Hizb ut-Tahrir in Bangladesh
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