ISLAMIC ECONOMIC SYSTEM

1. 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

2. 1Principles of Islamic economic system

3. Devine Economic Plan Malik 2 Wealth is a test Anam 165/Nahal 71 Not related to efforts Zumr 49 وَاللّهُ فَضَّلَ بَعْضَكُمْ عَلَى بَعْضٍ فِي الْرِّزْقِ And Allah has made some of you excel others in wealth. (Nahal 71) 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)

4. Spiritual Power جانى جهاد Prayer صلاة Economic Power ما لى جهاد Charity زكاة و انفاق Piety نفس كا جهاد Fasting روزه Unity اجتمائى جهاد Hajj حج Human Welfare انسانيت كى فلاح Social System معاشرتى نظام Economic System معاشى نظام Political System سياسى نظام Spiritual System روحانى نظام Mission of Islam (اسلام كا نصب العين) Work (كام) Output/Resource (قوت) Outcome (مقصد)

5. Good deeds عمل صالح Belief مقصد حيات Economic System (رزق) اقامت زكاة Morality System (شريعة) اقامت صلاة جسم كى غزا روح كى غزا Accumulation of Wealth (منكر) دولت كا ارتكاز X Distribution of wealth (معروف) دولت كى تقسيم  الَّذِينَ إِن مَّكَّنَّاهُمْ فِي الْأَرْضِ أَقَامُوا الصَّلَاةَ وَآتَوُا الزَّكَاةَ وَأَمَرُوا بِالْمَعْرُوفِ وَنَهَوْا عَنِ الْمُنكَرِ وَلِلَّهِ عَاقِبَةُ الْأُمُورِ 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 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) إِنَّ الَّذِينَ آمَنُواْ وَعَمِلُواْ الصَّالِحَاتِوَأَقَامُواْ الصَّلاَةَ وَآتَوُاْ الزَّكَاةَ لَهُمْ أَجْرُهُمْ عِندَ رَبِّهِمْ وَلاَ خَوْفٌ عَلَيْهِمْ وَلاَ هُمْ يَحْزَنُونَ 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 (Baqra 277) (Noor 55) Target of Islam (اسلام كا نصب العين)

6. Business بيع Usury ربا Individual (فرد) Frugality & Sharing عفو State (حكومت) Distribution سدباب تكاثر + - وَيَسْأَلُونَكَ مَاذَا يُنفِقُونَ قُلِ الْعَفْوَ كَذَلِكَ يُبيِّنُ اللّهُ لَكُمُ الآيَاتِ لَعَلَّكُمْ تَتَفَكَّرُونَ فَإِن لَّمْ تَفْعَلُواْ فَأْذَنُواْ بِحَرْبٍ مِّنَ اللّهِ وَرَسُولِهِ 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 (Baqra 279) كَيْ لَا يَكُونَ دُولَةً بَيْنَ الْأَغْنِيَاء مِنكُمْ (Hashar 7) (Baqra 219) But if you do not stop taking usury, then be ready for war with Allah and His Messenger 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) “… in order that wealth may not become confined to the rich amongst you”. (Tauba 34-35) Economic Principles of Islam Earning Side آمدنى Usage Side مصارف Falahi Nizam Istasali nizam َأَحَلَّ اللّهُ الْبَيْعَوَحَرَّمَ الرِّبَا Allah has allowed business and forbidden usury (Baqra 275) 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.

7. Islam abhors DEBT and strongly discourages it • 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)

8. Islam prohibits and strongly CONDEMNS usury or RIBA. • 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]

9. Legal System Limited Capitalism (surplus wealth for personal use) Spiritual System Spiritual Socialism (human rights on surplus wealth) Inter-dependent & Inter-connected (Synthesis) Restricts luxury & wealth accumulation Channels excess wealth to needy Immune System (Regulatory) Treatment system (Repair/Maintenance) Dimensions of Islamic Economic System Restricting evils/crimes Elevating ethical/ spiritual values • 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.

10. Economics: A life blood system of Society Individual Distribution (Arteries) State Collection & Re-distribution (Veins)

11. Status of Sources of Income Labor + Capital (Entrepreneurship) Ideal Permitted Partnership (Labor + Capital) Restricted Machine Middlemen Land Prohibited Money Medium of Exchange

12. Compulsory واجبات Marriage payment and penalties on certain faults Taxes (تيكس) Taxes imposed by state to provide basic needs of its citizens Zakat (زكاة) Payable on wealth of individual Inheritance (وراثت) Strictly in accordance with injunction of Quran Voluntary Charity (انفاق) Entire wealth in access of basic needs Distribution Channels (عبادت) % of contribution

13. Trade* Risk capital investment at profit/loss + Work + Public benefit *Limited liability is an exclusion Interest based Load taken/given at interest with security against fully insured property (margin financing) Public Benefits Does the activity lead to employment/resource generation or brings harm to the public interest Gambling Profit/loss without efforts at the expense of someone else Stock Exchange Transactions X Y X Y • 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.

14. Trade* Risk capital investment at profit/loss + Work + Public benefit *Limited liability is an exclusion Interest based Loan taken/given at interest with security against fully insured property (margin financing) Public Benefits Does the activity lead to employment/resource generation or brings harm to the public interest Gambling Profit/loss without efforts at the expense of someone else Property business (Plots) X ? X Y 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

15. 4,690 5,000 An item costing Rs 100 now costs Rs 4,690 in year 50 @8% inflation rate 4,000 3,192 3,000 Value “Rs” 2,172 2,000 1,479 1,006 685 1,000 466 317 216 147 100 0 0 5 10 15 20 25 30 35 40 45 50 Year State Financial Crime: Inflation

16. Faceless dragon eating humanity Resources زرائ آمدنى Credit قرض Judges جج Production بيداوار Corporate Capitalist Citizen (limited liability) (1886) Law قانون Commerce تجارت Trade كاروبار Politicians سياست دان Media ابلاغ Jobs ملازمت 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) Islam does not permit limitation of liability. Every individual is fully responsible for his deeds 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) Corporation: An ingenious device for obtaining individual profit without individual responsibility. Moto: Profit, growth & Competition and amorality, dehumanization, opposition to nature.

17. (http://www.biblebelievers.org.au/usury.htm) Does Islam allow any Banking System? • 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. 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

18. Moral (Height of spiritual living) • Hallal means of living • Distribution of entire excess wealth • Hardy any situation of Zakat • Simple lifestyle Legal (Minimum threshold of living) • Hallal means of living • Pays Zakat and other compulsory dues • Charity (infaq) up to the level of Taqwa • Modest lifestyle Illegal (State of practical kufr) • 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 Three economic modes of Muslims WIDE RANGE OF STRUGGLE

19. Before (Savage Society) After (Natural Society) Tyranny Savagery Cut-throat competition Self-centeredness Criminality Robbery Theft Racism Piety Courage Happiness Justice Content Satisfaction Chastity Humility Non-contributory /Contributory Social Security Plan (Surplus Pool) Exploitation Intellect Compassion Care of kin Affection Sincerity Freedom Fortitude Munificence Zeal & Endeavor Harmony Cowardice Ignorance Tensions Fear Hunger Servitude Debt Threats Deprivation Mirror view before/After Implementation

20. 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.

21. 2Principles of current economic system

22. Government Companies Individuals X • GDP growth • Free market • Credit • Tax on income/ Consumption • Deficit financing • Sales growth • Money • Credit • Consumerism • Profit • maximization • Income growth • Money • Credit • Consumption • Wealth • maximization X X • Wealth Tax (عبادت) • Guarantee basic human needs • Restricting wealth accumulation • Earned income (محنت) • Restricts consumption (اعتدال) • Distribute surplus wealth (عبادت) “Ownership/Competition” Short-term approach Y Y “Trusteeship/Cooperation” Long-term approach Modern Economic Drivers Islamic 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” 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.

23. Organic Resources حياتى اشياء (Manpower, animals, plants) Inorganic Resources نامياتى اشياء (Natural Resources) Major problem of Humanity: Operating under incompatible Systems Matter (ماده) Natural (Real) Economy Money (دولت) Financial (Shadow) Economy Operates under physical/biological constraints Operates under unconstrained compound interest rate growth Taxes (محصول) EXTREME FOCUS PRIMARY Gov. Deficit (افراط زر) Money (كرنسى) SECONDARY Credit (قرض) • 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 Founding father of discounting “Paul Samuelson in 1937”

24. External Political & Economic Conditions Social Process Demography Technology Economy Institutions Culture Information Ecological Process Primary production Populations Organic matter Nutrients Disturbances Interactions Land use Land cover Production Consumption Disposal Natural Systems فطرى قوانين Human Systems انسانى قوانين External Biological, Geological & Physical Conditions Framework of integrated human ecosystem Y X X فطرى اور انسانى قوانين كا ربط X 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.

25. Basic types of growth patterns Growth c natural curve (natural resources) linear curve (machines) exponential curve (money) b a Time 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.

26. 77 times of national total now U.S. NationalDebtClock US Population As of 25th January 2006 Current Interest Rate DEBT WHIRLEPOOL http://www.brillig.com/debt_clock/

27. 1 Kg in year 1 Weight of Earth No of earths Kgs in year 2000 Impracticable (Financing Decisions) cc Interest Rate (8%) 1 The economist sees economic activity as a function of infinite "money creation", rather than a function of finite “natural resources". “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. By applying the Islamic approach, a lot of human misery could have been avoided. Wayne A.M. Visser and Alastair McIntosh http://www.che.ac.uk/publications/usury.htm

28. Un-natural (Investing Decisions) 120 100 100 100 100 100 100 100 100 100 100 100 100 100 80 Capitalist Way Islamic Way 62 Quantities @10% 60 39 Year 50 Quantities 40 24 15 9 Year 1 Quantities 20 6 4 2 1 0 0 1 5 10 15 20 25 30 35 40 45 50 Year • 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

29. 3Outcome of current economic practices

30. Explosion of Over-supply كثرت ترسيل Explosion of Competition اندهى مقابله بازى Explosion of Debt سودى كاروبار كا جال Explosion of Over-utilization كثرت استمال Explosion of Over-wastage كثرت ضياع Explosion of Over-production كثرت بيداوار Outcome of modern economic system 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)

31. World Economy at Crossroad Products economy Industrial Economy Industrial Economy Employment Real Economy Paper 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

32. Moral Laws Physical Laws Economic Laws Modern tragedy of Contradictory Laws Integral System X Quick Usage Self-Centered "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 Overnight Profit

33. Consumption & Waste Culture • 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 Mind control “work-and-spend lifestyle.” 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)

34. March towards Destruction? Each U.S citizen requires energy of 300 persons working round the clock

35. Wood Labor Domesticated Animals Lifecycle is no more sustainable 100% Stacked presentation of work done over time in United States by labor, Domesticated animals, Fuels as a percentage of Total Horsepower in the Economy 80% 6000 products (Fertilizers & pesticides!!!!) 60% Oil is capitalism's crack cocaine Labor Energy is now life blood of economy 40% Fuel 20% Domesticated Animals 0% 1850 1870 1890 1910 1930 1950 1970 p.79 BEYOND OIL. J. Gever et al. 1991

36. 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 http://lifeaftertheoilcrash.net/Research.html

37. 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)

38. 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)

39. Story of Past Rebels “Tower of Babel” 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 Period of Namrood (let us revolt) 2500 BC

40. 4What should we do?

41. Penalties on various crimes Level Crime Action Moral various Disliking/Curse of Allah Social Sex 100 Lashes Political Killing Revenge (Qasas) Economic Interest War with Allah & Rasul    

42. Steps for healing the money system • 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 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

43. Action at personal level • Adopt simple lifestyle (Resource conservation & sharing) • Get out of interest/speculation based investments • Fully utilize goods before replacement • Eliminate morbid craving for extravagant gadgetry • 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

44. Final outcome 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 شَدِيدًاوَعَذَّبْنَاهَا 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) 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

45. POWER SHIFT: PEOPLE GLOBAL FINANCE Globalization Deregulation Concentration CAPITALIST ECONOMY Large & Global MARKET ECONOMY Small & Local Global Financial System People Ownership Global Corporation Culture & Choice Rules Ownership Culture & Choice Rules X Local Enterprises People Source: Life after the Dominance of Capital, by David C. Korten http://www.bke.hu/~kg_korny/altern/korten/kortpres.html

46. 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

47. Jazakallah