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Each and every Muslim Country, even the one with the substantial percentage of world’s oil reserves or other natural resources are termed under developed and none of these are classified as industrialized countries and they are partially or wholly dependant on European technology – and Scientific progress and furtherance.
This paper analyses, critiques, and finds a solution to keep abreast with European know-how, keeping the regime and culture within the Islamic framework. It does not intend to criticize any particular person or country. It elucidates that Islam is the only perfect way for Muslims for now and forever.
Masood Khawaja
President
Halal Food Authority
109 Fulham Palace Road
London W6 8JA
Tel: +44 020 8563 1994
Fax: +44 020 8563 1993
 |
Masood Khawaja delivering his speech at IMTEC 1998 in Kuala Lumpur
Malaysia. |
 |
| Masood Khawaja in conversation with Dato Seri Rafdah Aziz and other delegates at IMTEC 1998 |
“Men, whom neither trade nor sale beguileth from remembrance of Allah and constancy in prayer and paying the poor due; who fear for the day when hearts and eyes will be transformed (in a world wholly new)”
[Al-Nur 24:37]
Wherever, whatever a Muslim does, from morning till evening he does it in the name of Allah and for the sake of Allah. In Islam trade is virtuous, and it should be accompanied by good manners and excellent qualities. Islam orders that Muslims should be fully conversant with the rules of business and abhors ignorance about commercial matters. Islam does not condone hoarders or black marketers. It is said that Hazrat Ali (RA) equipped with a bifurcate scourge used to visit bazaars and sometimes utter aloud, “O traders! Fear Allah; seek proximity with the customers. Decorate yourself with patience. Shun Usury. Do not sell lesser. Do not take commodities from people at lesser rate and do not spread mischief on Earth.” (1)
In Nihj-al-Balaghah (pp. 1088) it is stated that transactions should take place in a gentlemanly manner and with exact scales and just rates so that injustice may not be done either to the buyer or to the seller. And when anyone is guilty of hoarding after having been prohibited by the Prophet (SAW), award the proper chastisement which should not be harsh or severe.
In Surat-al-Jumu’ah, Allah says,
“ O ye! Who believe when the call is heard for the Friday prayers, haste unto remembrance of Allah and leave your trading. That is better for you, if ye but know. And when the prayers are ended then disperse in the land and seek Allah’s bounty and remember Allah much, that ye may be successful.”
[Surat-al-Jumu’ah 62: 9-10]
ISLAMIC TRADE PARADIGM
Banu Hashim of Quraish were blessed by the birth of a son to Abdullah, named Muhammad in about 570 AD. Quraish were increasing in wealth, power and prosperity. Mecca, probably it was known as Makorba, as stated by the 2nd century geographer Ptolemy, was even then an important commercial centre. Bedouin tribes were trading in spices and other goods, between southern Arabia and the Mediterranean. Before the birth of our Prophet Muhammad (SAW), the volume of the trade was considerable, partly as a result of the continuing warfare between the Persian and Byzantine Empires, which at times disrupted northern land routes. It was cognizant that the trade in Hijaz was controlled by powerful and increasingly civilized tribes. Trade caravans before the time of our Prophet used to converge from the cardinal points, say, north and west from Syria and the Mediterranean, south and east from Yemen and Persian Gulf. Nomadic people traded in hides, spices, cloth or livestock and survived on camel milk or dates. Some used totem of Khunza, rulers of Mecca before Quraish and others followed tribes from Taif, Madina or Khaybar. These groups were hierarchical for military purposes, socially organized but somewhat egalitarian. In fact it can be said that the Quraish having gained control of Mecca in the 5th century were leading merchants of the peninsula.
Allah said in Quran,
“ That Becca (Mecca) the first sanctuary appointed for mankind, the blessed place as guidance to the people.”
[Al-Imran 3:96]
Our Prophet (SAW), may Allah have peace on him, before the announcement
and confirmation of him being the last prophet and Nabi and
revelation of Quran, was an honest and noble trader. This is mainly
why Hazrat Khadija
(RA) trusted him and later married him. Before marriage he
did all the trade for her with honesty, zeal and surely creating
some profit within
the business.
However, pre-Islamic Bedouins because of their accomplishment in trade were producing a new environment in which nesux was replacing the simpler bartering arrangements of the old system. Some became wealthy and rich, but a majority were hit by poverty and went hungry in the end. Increasingly because disparities of wealth were not only apparent but were the only reason of this fate at individual level. Retaining profits, they were becoming venture and financial capitalists. This could logically be the reason why the Quran imposes Zakat, a rationalized form of security for the needy and forbids usury.
It is now easy to deduce why Allah warns us that trade is better than riba, the usury. (2) Generally Quran does not condemn wealth, but only its pursuits as and end in itself, which can inflict social misery and spiritual cognisance. Islam in fact propagated to do trade as previous generations carried out, but only to make it better for Awam-un-Naas, and taught individuals to be honest, fair, just and virtuous. After the demise of the Prophet (SAW) until the time of Umar (RA), Hira, the capital of Iraq was occupied. Byzantine army was defeated in Syria by Khalid at the Yarmuk. Sassanides were defeated at Qadisiya on the Euphurates, Muslims had entered Egypt, captured Persian fortress of Babylon, reaching Barq (Tripolitania) in Iranian Highlands.
All this activity had fruition of extended trade and obviously some trepidation with it. Subsequently trade flourished and expanded. Carried by Monsoons, ocean going dhows, which sailed to China in the east, Muslims had made trading colonies in East Africa, spreading to Mozambique. Some traders were so wealthy that the Caliphs of the time imposed apart from Zakat, a wealth tax, which was distributed among projects, for the poor and the needy.
Looking at the conquest of Egypt in 969 AD by the Fatimid rulers, such as Al-Mu’izz, we find their influence in Persia, Sindh, Syria, Yemen and they had proclaimed themselves as rulers in Baghdad. Since they had developed Cairo as an entrepot between the Mediterranean and the Indian Ocean, building up sea power and controlled much of the trade between Europe and the Indies, the Fatimids developed the Egyptian capital as the centre of culture and learning. We Muslims, even to this day benefit from one of their legacies – the al-Azhar University. In fact keel-form arches surmounting the delicate colonnades of its courtyards confirmed the theories that they were pioneers of modern and excellent architecture.
Muslim traders, and marabouts, and so called light skinned Fulani cattle herders of around 1700 AD, and tribesman journeyed south of the Maghreb into what are now known as Mauritania, Mali and Nigeria, and into the riverine states of Senegal and Volta and gave them an aura of culture and prestige that commended them to the Muslim virtues.
The Indian subcontinent was introduced to Islam by the invasion of the Indus Valley in 712 AD, by the Arab Muslims. Subsequently, Mehmud the Great of Ghazni annexed Punjab. Followed by Mohammad Ghauri, and in the wake of disruption by Genghis Khan, Allauddin Khilji took command; thereafter Tamerlane came in around 1398 AD leading to the reigns of Emperor Akbar and Shahjahan. They all entered the sub-continent through the trade routes.
AL-ANDALUS, SPAIN
Present day Spain was governed by a tribe called Vendals (after whom Arabs named Spain Al-Andalus). They were pushed out by Visigoths, and the Visigoths were defeated by the Berber freedman Tariq in 711 AD. Soon it became a trade centre for manufacture of beautiful things. Rubies were mined in Malaga, Gold, Silver and Marble at Jaen. Gold and Ivory was brought in from Western Africa, across the Sahara by camel caravans, then by seaports of North Africa. Craftsman of Cordoba made precious and delicate jewellery, tapestries of intricate patterns, developed tannery and embossing leather. They were the first to manufacture Crystal. These Muslims made the land produce more as well. For agricultural development they dug canals and set up elaborate irrigation systems to make crop grow much more in the areas where rainfall was scarce. They have left an imprint of their influence on the language of Spain as well. Say for example the word, ‘Acequeih’ which is derived from the word As-Saqui’ah which means irrigation channel. They grew grapes, apricots, peaches, figs, sugarcane, olives and cotton. They grew a fruit, which is now known as orange. The language of the time tells us that it was naranj. When we look at European cat called Tabby, do we stop to wonder that actually it is derived from the word attabiy, named after a quarter in Baghdad, which made striped silks. These Muslims left an everlasting and distinctive impression of architecture and language. Olive trees from the hills produced a large quantity of oil, which was sent to Africa in exchange for Gold. We should perhaps know that Muslims had invented an oil purification and distillation system, which was to crush and extract oil from olives. It is understood that the same core principles and theory is applied to modern-day oil purification, even in extracting fuel oil & petrol from the crude oil. Perhaps these skills of trading Muslims were a precursor to Europeans commercialism as is known today.
These people were brilliant painters; some of the splendorous work can still be appreciated looking at some of the gorgeous facades and penetralia of the famous buildings. If we look at some of the mosques, churches, synagogues, and the palaces we will have to appreciate the excellence of the design and architecture. Mosque of Cordoba, Seville (Eshbillia), Church of Santa Ana or the Palace Torre-del-Orro in Seville and Al-Cazares-Reales, which are now museums, are prime example of craftsmanship of the people of that time. These facets of trade and culture were to become beneficial to create a semblance in European civilization as we find it today.
THE OTTOMANS:
As far back as in 1625, an Ottoman observer, Omar Talib, wrote (3), “Now the Europeans have learnt to know the whole world; they send their ships everywhere and seize important ports. Formerly the goods of India, Sindh and China used to come to Suez and were distributed by Muslims to all over the world. But now these goods are carried from Portuguese, Dutch and English ships to Frangistan, and are spread to all over the world from there. What they do not need themselves, they brought to Istanbul and other Islamic lands and sold at five times the price, thus earning much money. For this reason gold and silver were becoming scarce in the lands of Islam. The Ottoman Empire must seize the shores of Yemen and the trade passing that way; otherwise, Europeans will rule all over the lands of Islam.” (4)
After the time of Prophet Muhammad (SAW), Muslims destroyed the Sassanians, in 637 AD, Byzantine Empire was partly overrun by Muslims and Turkish Empire was founded in 760 AD having conquered Anatolia in 1071 AD the Turks defeated Byzantines over Asia minor in Battle of Myriokephalon in 1176 AD. Subsequently the Ottoman Empire was founded in 1330 AD. In between this year and 1919, when the Ottoman Empire was dismantled, history tells us that Arabs had lost Cordoba to Carlisle in 1236 AD, Mongols had taken Moscow and Kiev, and had conquered and then withdrawn from Poland and Germany. Turks had taken Athens in 1456 AD, and by 1463 AD they were rulers of Serbia, Bosnia, and Venice, and even Crimea was theirs by 1475 AD. The table started to turn by 1699 AD. The Turks lost Hungary to Austria, and before that in 1683 AD defeat at Vienna sealed the end of advancement of Islam in Europe. Catherine the Great came in 1762 AD. Napoleon became renowned for his famous battle of Waterloo in 1815 AD and, in between Turkey had war with Russia in 1695 AD, which came after Turkey and Holy Roman Empire’s war in 1661-64 AD.
It is interesting to note that while all this was happening, great Arab cities like Cairo, Damascus, Baghdad and even Cordoba were producing finest scientists and philosophers in the world. Europeans did not even venture on some of these subjects until renaissance. While Europe wallowed in darkness and ignorance, the Arabs astonished the world with their architecture, mathematics and medicine. Just to quote a few:
The Arab SIFR or zero, which was obtained by them in their rendezvous, later on provided new solutions to complicated equations. Look this is the zero with which we are suffering now. Some of our endeavours in the present day environment result in zero.
So far we have noticed that Muslims were not only good businessmen, manufacturers, importers and exporters, they were also philosophers, medical innovators, physicists, and above all they were explorers and traders.
WHERE DID IT ALL GO WRONG?
Now, let us direct our attentions to analyse what caused these well-established empires to fade away just to become chapters of the history books. Were they operating or functioning under the rubric of Islamic ethics and laws? The facts were manifold and indicate that the Ottoman Muslims were impervious to ideas of inventions, which were in their opinion mainly Christian, artisan and of vile mechanics.
Also, the suicidal fiscal policy, which under the spacious name free trade, had stifled Ottoman industry and thrown the country in to the hands of Europeans exporters. This aggravated more and caused a lack of facilities and lack of transportable roadways that led to the backwardness and poverty of Ottoman trade. The industrialisation of the Ottoman trade started to diminish and virtually took a tumble when Turkey, along with many other countries underwent the shattering impact of the expanding industrial capitalism of Europe, and flood of cheap manufactured goods flowed into the Turkish market. The most important imports of the time were textiles, and hence the old established Turkish cotton market and silk manufacturers suffered accordingly. (5)
It is inevitable to account here that the rise of dynamic western Europe in conflict with stagnating inert and passive Muslim world gave rise to a situation where European economic and political environment which started to rupture the empires at the seams and disintegrated into a mere colony of people. Now is it not ironic that an Arab seafarer, Ibn-Al Majid, was the one who piloted Vasco-de-Gama in the Indian Ocean, thereby enabling him to rounding the Cape of Good Hope in 1498. And ending the Muslim monopoly over the monsoon trade routes, which had contributed so much to the wealth of Baghdad and later of Cairo.
In the central Asia the Russian began displacing Muslims from Volga basin. By 1813 AD they had taken over most of the Caucasus, by the 1870 AD they had conquered most of the Turkistan, leaving a handful of autonomous Sultanates which included Bokhara. Russian broke the Ottoman Empire monopoly in the black sea and annexed territory around Azvore sea.
At the western end of the Muslim world, France had begun its expansion into the Maghreb and occupied Algeria in 1830 AD; Tunisia in 1881 AD and by 1911 had Morocco in their grip. By then Italy had vanquished the remainder of the Ottoman territories west of Egypt. Trans-Jordan, Palestine was created in peculiar form. Muslims were succumbing to the European supremacy. By 1920 the only Muslim countries remaining were Turkey, Persia, Afghanistan, the Najd and part of Yemen. The rest of the Muslim territories were made direct colonies.
FROM EMPIRE TO POVERTY
Among other reasons of the downfall and shrinking empires was that the European developed technology and as stated earlier, took trade routes which their cunning and wakeful enterprise enable them to obtain the reins of not only the countries but of the continents. In short, even subsequent struggles for independence by rulers of feeble regimes resulted in so called freedom, but the same countries trade and at times their laws. And most of all majorities had been left poorer, without technology, education and even agricultural machinery to prop up their crops. Third world, underdeveloped world, the terms my ancestors of the subcontinent would be astounded about, are being labelled. Little do these people know or endeavour to remember that at the time of the British Agrarian reforms, Emperors of the Indian subcontinent lived in palatial surroundings and were a force to be reckoned with.
We can easily deduce that the
Muslims suffered because they had lost Sirat-e-Mustaqeem. They were certainly
not performing according to the jurisprudence of Islam
and the Quranic Injunctions. Our Ancestors were thinking that glory belonged
to them, but it was and is Allah’s domain.
The Quran says:
“ It is He who made you (His) Agents, inheritors of the earth. He has raised you in the ranks, some above theirs, that He may try you; in the gifts He has given you. Verily, your lord is quick in punishment, yet He is indeed oft forgiving, most merciful.”
[Al An’am 6:165]
When we look around we find that Muslim countries despite of their natural wealth are really bottom of the league. Say, Nigeria and Saudi Arabia; yes, oil rich but are they competing with the west in technological advancement. For example in 1994 Nigeria exported £9.4 billion and imported goods worth £6.5 billion. And Saudi exported £38.6 billion and imported £22.8 billion. But how much prosperity was brought in from the surplus for the masses. On the other scale where there is no natural oil, for instance, for Bangladesh in 1994 the figures for export were £2.7 billion and imports stood at £4.7 billion and, Egypt exported £3.5 and imported items worth £10.2 billion. British directory of trade statistics indicates, in 1997 Nigerian imports from European countries stood at $2.1 million and export figures were $4.7 billion. The difference must have been crude oil.
Where as during the same period, Malaysia imported $32.9 billion and exported $10.3 billion. And we note that here crude oil was not one of the commodities. Pakistan likewise imported $6.1 million, but exports were a mere $3.4 billion. And this trade was with different European countries. Interesting to note that Kuwait, though an oil producer, imported $21.7 billion and managed to export only a mere $11.6 billion worth of merchandise in 1994. Pakistan and Afghanistan are rich in mineral and semi precious stones, but the question is, are these mined goods put to a better use for the economy? Along with oil, rubber, tea, cotton, gas and timber there are many, many commodities, which could help to develop and expand economics of the Muslim countries.
We are given to understand that the manufacturing sector of the Muslim countries has capabilities of manufacturing, but they are only making products under the European labels.
Sometime one has to wonder why items are imported instead of manufacturing things using their own capabilities? For example countries like Pakistan in 1997 imported from the United Kingdom sweet biscuits worth £124,868.
BISCUIT IMPORTS
FROM UNITED KINGDOM |
|
| COUNTRIES | £ STERLING |
| Pakistan | 1245,868 |
| Indonesia | 427,199 |
| Saudi Arabia | 22,743 |
| Kuwait | 289,182 |
Similarly;
| TOILET WATER IMPORTED FROM UK IN 1997 | |
| COUNTRIES | £ STERLING |
| Dubai | 2,013,894 |
| Saudi Arabia | 2,124,635 |
| WORN CLOTHES UPTO YEAR ENDING DEC 1997 | |
| COUNTRIES | £ STERLING |
| Pakistan | 3,758,639 |
| Malaysia | 57,381 |
Can we imagine during
the year-end December 1997, Nigeria imported wooden furniture to the value
of £127,842?
This figure does not seem to be very high but if we start listing commodities
item by item it will soon
add up.
During the month of December 1997 statistics of the UK ministry of trade and industry show that the oil producing countries exported crude oil to the United Kingdom as follows:
| COUNTRIES METRIC TONNE | |
| Nigeria | 214,153 |
| Kuwait | 1,550,039 |
| Saudi Arabia | 1,842,485 |
If we take the figures of export of raw jute from Bangladesh in 1996-97 the export figures were:
| COUNTRIES THOUSANDS OF $ | |
| Belgium | 2,520 |
| Greece | 839 |
| UK | 1,634 |
We are certain that apart from the other commodities Bangladesh can export different varieties of fish, crab etc. Hidden in their own statistics we discovered that the Bangladesh exports human hair as well.
PERMISSION TO PRODUCE OUR OWN:
Do we not remember, and how can we forget? When the Shah of Persia reiterated that he wishes to export the end-products of the crude oil his kingdom produced, in the shape of refined petroleum and by-products like Melamine, Vaseline and other biochemical products, it led to his plummeting prestige and finally removal from the scene. And all because his intentions of not to supply crude oil. Some will say that there were other reasons too. Then again some could argue that the poverty and technological backwardness, lack of agricultural sufficiency that afflicts Muslims countries today are all because Islamic Society became too inflexible to adapt to change. Its leadership maintained medieval “feudal” regimes while Europe pursued mass education and democracy.
Many do counter that “it is ‘militant Christianity’ and ‘militant Judaism’ that are the root causes of failed Muslim Societies and instability”. This viewpoint may be potent in the light of foregoing and following comments. “The aggression and intolerance of Christian-initiated Crusades and inquisitions, European colonization, the break up of the Ottoman Empire and somewhat artificial creation of modern states in Iraq, Lebanon, Syria, Iran, Palestine, Jordan and establishment of Israel.”(6) Moratorium of failures and defeats sometimes does make people quote different reasons for the result.
Out of 55 or 57 Muslim countries which are dotted around the globe; be it larger ones like Indonesia or the smaller ones like Mali we do not have a single Muslim country amongst or anywhere nearer to what is called G-7, a club of so called western economic powers.
Analyze the Muslim countries and one finds the figures as follows; (7)
| Countries | Population | TotalGNP$M | GNPPer head$ | Proportion of GNP spent on | |
| Education | Defence | ||||
| Bangladesh | 117.4 | 25,674 | 220 | 2.3 | 1.4 |
| Indonesia | 194.7 | 136,620 | 730 | 2.2 | 1.6 |
| Iran | 59.6 | 130,910 | 2,190 | 2.5 | 5.7 |
| Nigeria | 93.5 | 32,517 | 310 | 1.7 | 0.08 |
| Saudi Arabia | 17.9 | 126,320 | 7,940 | 6.8 | 16.0 |
| Turkey | 61.2 | 114,236 | 1,950 | 4.0 | 5.4 |
Alternatively if one looks at the figures for UK:
| UK | 58.4 | 1,024,025 | 17,770 | 5.2 | 4.2 |
Malaysia, where 53% of the population is Muslim, indicates figures like;
| Malaysia | 19.5 | 60,141 | 3,160 | 5.5 | 3.7 |
Figures from Azerbaijan, Kazakhastan, Chad, Mali, Somalia or Tanzania are probably not going to show any improvement in figures of exports of goods or spending of revenue on education or provision in obtaining or developing technology for self-sufficiency. Places like Pakistan, it might come as a surprise, till this day have problems of producing enough electricity for their own masses.
The paucity of interest of scientific study in the world of Islam tends to lack sophistication in economics. The Muslim share of world income is much less compared to the Muslim share of world population. (8)
Perusing these figures there is a lot to be desired and there is a lot of room to manoeuvre as far as putting the population to good use is concerned.
The anomaly of lack of production of exportable commodities, lack of jobs, trade deficits will not be solved unless we learn from Ibn Khaldun (1332-1406 AD), one of the greatest Economists of Islam. He discusses the economics, including subjects of value, production and consumption, division of labour, the price system, the laws of supply and demand, money, capital formation, population growth, public finance, trade cycles etc.
His theories constitute; no state intervention in the economy, and proper distribution of wealth in free market, emphasis on social organization of production, where main factor is human labour. Leading to international trade, where we see apart from natural resources, as he says, “the embryo of international trade with the analysis of terms of exchange between rich and poor countries, of the prosperity to import and export, of the influence of economic structure on development and on the importance of intellectual capital in the process of growth.” This is how Bolakia describes and discusses it.
POINTS TO PONDER
Islamic philosophy of development and growth encourages Muslims in productive enterprise; Islamic assumptions are that individual utilities are highly independent. The Islamic states would profit and become economically sound if they are technologically advanced and are capable of not only becoming self-sufficient by using their resources and sources. And by exporting special commodities or the residues of the stuff which can be used outside their countries. The Islamic states would also gain from the wealth and have prosperity if their rulers or elite people who have been bestowed with the reins of their respective countries do not; a mass wealth or hoard commodities, and restrict enterprise only for themselves.
Recently we all heard that the Pakistan premises acquired riches by misusing the country’s wealth and, this sometime is blamed for their downfall. Similarly we have seen the largest of the Muslim domain Indonesia, had faced analogous reason for removal of its head. We hear everyday that the chaos and mass struggle to sustain everyday life, is still going on. When we look at the Saudi Kingdom, we find the rulers have holistic control of all aspects of the state. It does not mean that the country is not prospering, but the need of the modern time to be industrialized and becoming self-sufficient is somewhat not on the agenda.
Islamic states should establish a banking system at par with the western banking system but without the gratis of interest or Riba-ul-Qurd. Astounding it might sound, but the Old Testament says:
“If thou lend money to any of my people that is poor by thee, thou shall not be to him as an usurer, neither shalt thou lay upon him usury. If thou at all take thy neighbours raiment to pledge, thou shalt delivery it onto him by that the sun goeth down.”
[Exodus 22:25-26]
Aristotle also singles out and elucidates that,
“The most hated sort of wealth getting with the greatest reason is usury, which makes a gain out of money itself and not from natural object of it. For money was intended to be used in exchange, but not to increase as interest. The term interest (tokos, in Greek literally meaning offspring) which means the birth of money from money, is applied to the breeding money because the offspring resembles the parent. Wherefore of all the modes of getting wealth this is the most unnatural.”
[Aristotle 71-72]
Allah’s injunctions in the Qur’an are;
“Those who devour usury will not stand except as stands the one whom Shaitan has driven to madness by his touch. That is because they say buying and selling or trade is only a kind of usury, but Allah has made Buying and selling or trade lawful, and forbidden usury.”
[Al-Baqara 2:275]
“ Do not devour usury manifold, increasing or doubling, redoubled, and fear Allah. Perhaps you shall be successful.”
[Al-Imran 3:130]
It should be stated here that over the past few decades, Islamic banking has been the subject of scrutiny and also some banks were formed, but researchers are still at large to find their existence. Just imagine if the Islamic banking was in existence and the exporters and the importers of the Muslim countries, be it the organizations or private individuals, were using these facilities, how much economic benefit it would be to the Muslim world.
In the meantime, Muslims all over the world should make an effort to deposit their dues – the zakat, firstly regionally, then nationally and, if at all possible, establishing a Bait al-Mal al-Islami (a Muslim World Bank managed and operated by an elected council). Bait al-Mal al-Islami would have elected members from various participating countries and having collected zakat at the rate of two and half percent from gross income of domestic, individual or corporate establishments would be spending it on firstly education, health, establishments for assisting and protecting widows and orphans and secondly on infrastructures like, roads, hospitals and most importantly on housing. This can only be done if the Muslims are truly have a ray of Imaan in their hearts and they wish to adhere to axioms of the holy Qur’an and have an inner fillings for progressions of the Muslim society and Muslim Ummah in this modern, economical, cultural and scientific world.
JOINT VENTURES:
In the present world of interdependence it is difficult for any developing country to achieve its industrial development without resorting to external assistance and/or co-operation in one form or another. Industrial co-operation had been integral part of the co-operative efforts of the Islamic countries on a wider scale.
Such co-operation will naturally serve the Islamic countries to realize their own as well as common economic objectives and the Ummah’s collective self-reliance. In this context the promotion of joint ventures has been regarded as one of the most effective instruments designed for strengthening the economic co-operation and integration, be it on a regional or sub-regional level.(9) We hazard to add that some joint ventures did take place in the communication or political aspects but what we would like to propose is the joint ventures in capturing the European trade and markets.
We have to keep in mind the Economic Irrelevance Thesis, that as Eric Jones observes, “that there is no reason to look for special factors that depress the Islamic worlds economic performance; one must explore, if anything, the factors that overcome Europe’s own obstacles of growth.” Jones adds that Islamic injunctions “that they may appear inimical to growth the ban on interest, restrictions on speculation have routinely been circumvented.” At the same time he recognizes that efforts at evasion impose social costs. (10)
It is interesting to note here that there are chapter after chapters in innumerable books which confirm and explain the Qur’anic injunctions that riba, the interest, is forbidden but almost all the Islamic countries have the practice of giving and taking interest in vogue. Say for example, it is described under different heading in Pakistan, which is called and termed as ‘profit and loss’ in banking locution.
People like Bernard Lewis would lead us to ponder that the gate if Ijtihad was closed sometimes in 11th century because he affirms that the Islamic jurists and theologians contributed to shaping educational system that limited curiosity and innovation.(11) What we are imploring here is this, that we should have systems evolved by which we can enhance Muslim economy and the growth and re-growth of money and monetary systems within the Muslim states.
In ‘Islam and underdevelopment: an puzzle’, Timur Kuran’s scholium states, “Generations of economic historians have noted that after the few centuries of Islamic commercial relations between Europe and the Middle East grew mainly at the initiative of the Europeans (Issaw, 1995, Inalick 1994). Although recent research has discredited the extreme views that Muslims played a consistently passive part in a European-Middle Eastern trade, no one seriously disputes the findings that the Europeans increasingly dominated economic relations. Trade between these two regions were conducted mostly by European companies – a pattern that holds even today.
Anwar Griefs insights offer an explanation for the pattern; merchants form individualistic cultures are relatively better prepared for cross cultural trade, because they are less dependant on communal bonds and are already accustomed for forming agency relations with people outside the social circles. Significantly various Muslim-ruled states, Spain, Egypt, Syria, Persia, The Seljuk sultanates, the Ottoman Empire extended unilateral privileges to traders from European countries as early as the 12th century. The Muslim governments offered ‘capitulations’, as the concession came to be known, even as they continued to conquer European-held territories and gained control over the maritime trade routes.
Whilst commentators have tended to attribute the capitulations to political considerations. (12) Grief’s logic would assign a more basic rule to economic considerations rooted in cultural difference. Yet another fact that this logic illuminates the contrast between regional trade patterns. Intra-European trade expanded much more rapidly than trade within the Islamic world, essentially through the support of institution fostered by individualism. Given that trade contributes to growth, the result was growing disparity in living standards. (13)
INSURANCE AND REINSURANCE:
This is also one of the fields where we need the scope of joint ventures or even enterprises with single-country basis; Muslim can make a lot of improvements to their trading portfolio. As stated earlier, sometimes speculation either for natural disasters or currency market might not be appreciated under the ethos of Islam. But since almost all of us have Life policies, house or vehicle policies, and even in some of the countries, pension funds, which accumulate insurance equity and stock market gains, there is no reason why we cam not make insurance as a trade venture. Theologinas have to be given this task of bringing this science in an agreeable Islamic format.
We must note that some Islamic countries do have insurance companies on regional basis, but we are talking about the part that they still have to play in the international markets.
CONCLUSIONS:
It is a well-known factor and the points made earlier have shown us that the Muslim countries have always been in trade deficit with the European countries. Even the ones, which export some of their wealth of crude oil and such like to the west. The Muslim countries must endeavour to make end products from their raw materials and export them as finished goods. Be it agricultural machinery, electronic items, computer software, even the so-called defence equipment.
The irony is that the defence purchases are made from the European countries but subsequently the spare parts are purchased from the supplies as well. Agricultural support equipment, pharmaceutical goods, and general merchandise, are produced in some countries under franchise system or brand label. But if the same are exported, how can we call them export from Islamic countries?
Although some of the statistics will show, and make us believe that Islamic countries are trying or have tried to export goods to European countries. But in European market, not only the importer but the end user as well, informs us that the goods are of inferior quality, though a little bit inexpensive, but are not said to be reliable or durable. Also, if one consignment is of good choice quality, the next one wo9uld not be of customary quality control, or similar in colour, texture, strength, or even of ingredients of which the consignment was supposed to be composed or constituted of.
Is there any surprise that the next tender or order emanating from the European countries goes to a non-Muslim manufacturer or producer of similar items?
Some of the Muslim countries should take a leaf out of China and South Korea’s books. Though South Korean trade and technology is somewhat in decline at the moment, just look at the affect their exported goods had on the European market.
The electronic goods saturated in the western market, which we could say gave them taste of their own medicine of flooding the markets with consumer goods. We see that Chinese technology similarly is overpowering not only the export to the Muslim countries but to the west as well. China is exporting hardware, agricultural machinery, and some of the steel goods, which used to be proudly presented to be the seal of the European enterprise.
In developing economies of the Muslim countries it should be the potent thought of the day that they should not exploit the natural resources of say, oil and gas of the Middle East to be exported or the rubber, tea and timber from Asia to the western markets. They should train and educate their citizens and put them to good use, unlocking the potential which history tells us, brings the prosperity and, as the leaders of the developed world will tell us, cognizant strength and superiority in the world.
Muslim countries should contemplate increasing inter and pan-Islamic trade. Thereby tilting the collective trade deficit with the west in their favour, and use the yield to develop a support infrastructure to build heavy industries like maritime, aerospace, automotive etc. And exporting all these newfound things might be like taking coal to Newcastle but it would make good profit for the countries producing it.
It goes without saying that, today’s oil rich countries will have to face the fact that this natural source is not going to last forever. Therefore investment and re-investment of this kind will put the Muslim states jointly at par with the west as we see it today. We are aware of the fact that some of the European countries which are now thriving on the revenue of North Sea oil would have faced difficulty in remaining at the forefront of economic league.
It is in the offing that alternatives are being developed in the west to control the energy crises, which would make Europe free of dependence on the Middle Eastern oil and gas energy. Examples of these are;
How many other programs of making Europe self-sufficient are made? We are not privy to them.
Muslims have become accustomed to enjoy the life as consumers only. For example, take meat and food industry in UK alone which is worth 3 to 4 billion pounds per year and, that the share of the Muslim procurers and manufacturers of halal foods is not even 10% of the total. It means that 95% or over trade is conducted by non-Muslims under the banner of halal. Muslims could and should have, starting from farms, hatcheries, slaughterhouses, manufacturing and processing plants for various foodstuffs, distribution centres and the like to serve themselves as participants of economical progression and most of all to serve the Muslim community. Somehow it would not pay us just to be good for service industry and be renowned in sales with slogans ‘buy it’, ‘sale it’, till the closing time of the shops and consider that we are enjoying it or achieving economical benefits.
Now, with the expansion of the common market in the offing and with the increase of the Muslim population in the western hemisphere, the opportunities for the Muslims to grow with the rest of the world by doing trade in their own expert fields, by participating in technological advancement in procuring foodstuffs and its ingredients together with trading in usual commodities is infinite.
It is also prudent to suggest that as the future of trade development is tied with information technology, Muslim countries should encourage indigenous production of software and hardware essential for sustaining without always being the end users of western products.
The Muslim countries should have more conferences and forums to exchange ideas and thoughts. Allah has bestowed Muslims with scholars, philosophers, inventers, and people who, even in this day and age have achieved zenith in their specialised fields. Every one of them should be put to good use. Muslims like us who now reside in Europe, have established different institutions, and could play a great role in liaising in east and west relationships, be it in trade, economics or technology. Muslims should also choose their destiny and strive for their betterment and follow the code and practice of Islam, and develop an atmosphere of discipline, acumen for trade adoption of technology, trust, unity and integrity.
May Allah guide us, Insha-Allah
References
©Halal Food Authority 2006
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