One of the most contentious issues that have vexed the minds of Muslims is the concept of interest in the modern-day economy. The Islamic clerics (ulema) have exhibited an ambivalent stand on major issues concerning Islamic finance and on most occasions preferred to diplomatically deflect questions relating to it. Islamic finance is one of the greyest areas of both Islamic scholarship and practice and has attracted a very small pool of talented researchers. This is largely on account of the misplaced notions that discussions on Islamic finance are fraught with serious consequences and implications. People believe there are strong possibilities of one getting trapped in an act of heresy.
The Muslim economic life, along with their political and social norms, are regulated by a code known as shari?ah, (literally, “the path leading to the watering place”) It is a body of Qur’an-based guidance that governs, among other things,a Muslim’s economic and social life, dictating how believers should conduct themselves.
A careful reading of the Qur’an with respect to legal prescriptions) leaves no doubt that riba (any addition or interest) is haram (forbidden). Similarly, predetermined interest to depositors is also equally not approved by Islam. In Islam, capital is not capital in the conventional term; it is a potential capital which has to be channelised through businesses to generate additional income. Money cannot grow by itself. It has to be used entrepreneurially so that both the health of the economy and individual well-being are enhanced. The Federal Court of Pakistan, the highest judicial forum of Pakistan, has unequivocally declared the interest in any form, irrespective of the logic we use, is reprehensible.
Islamic economic theory, money is merely a medium of exchange, not a commodity to be traded. It has no intrinsic value and should therefore not grow over time. Idle cash cannot be a source of guaranteed income. However, capital can earn the returns derived from the productive use of capital. Islam regards Interest, in whatever form -ether disguised as “commission,” a fixed or variable add-on- or a discount, as usury and speculation as gambling
In addition to prohibition of riba, there are several other important provisions which govern financial transactions. These include the prohibition of ‘gharar’ (uncertainty or asymmetrical information), ‘maysir’ (gambling, speculation), activities and transactions involving alcohol and pork-related products, but also armaments, gambling, pornography and other activities deemed socially detrimental, like hoarding .
The basic instruments of Islamic finance include: profit-sharing (mudaraba), cost-plus financing (murabaha), partnership (musharaka) leasing (ijara), and forward sale (bay’salam). These constitute the basic building blocks for developing a wide array of more complex financial instruments.
In its most basic form, Islamic banking covers both savings and credit. Instead of being paid interest, depositors are considered shareholders and receive dividends when the bank turns a profit and lose money when it has a loss. Muslims are not allowed to pay or receive interest because Sharia, prohibits them from making a guaranteed profit on capital. Islamic finance uses a risk-sharing model. A typical risk-sharing arrangement is like an equity finance whereby the parties share the risk as well as the reward of a contract. The risk is transferred from the financier or lender to the borrower, where the financier retains both the property rights claim to the principle and interest but also to any collateral.
There are several Muslim scholars who question how “Islamic” this approach is and whether it is an appropriate ethical alternative to mainstream investments. Or is it a creative way of transplanting Islamic finance into conventional finance by tweaking the rules?
Although the accepted position in Islamic countries is very clear there are still several strands of conflict on the position in secular countries, particularly those which have seen a series of failures of Islamic financial institutions. In these countries, there is still no unanimity on the correct meaning of the term riba. Some prefer to translate it at as interest. There are others who believe that accepting the term as the modern equivalent of riba, particularly on account of modern finance having been cleansed of the element of usury and its coercive character, would amount to a very superficial interpretation of a term that has multiple layers that colour it. Riba, according to this school, has a sinister connotation and is actually meant to construe the coercive informal finance practices followed and pursued by rapacious moneylenders.
Many pragmatic Muslim bankers and financiers have argued that the Islamic injunction is aimed specifically against usury rather than interest. They say Prophet Muhammad was opposed to the loan-sharking techniques employed by money changers in the lawless markets of Mecca before the establishment of Islam. The liberalists say that there is nothing wrong with charging a reasonable price for the use of funds for a period of time. They argue that the Qur’anic prohibition applies to overcharging and usury, not money-market funds or interbank lending rates.
Islam lays great emphasis on entrepreneurship and believes that investors should become stakeholders in businesses in order to create wealth. It also emphasises that the business ventures must be carried out in true Islamic ethos of honesty, piety and trust. Otherwise, the precious investment of the depositors would be doomed. From my own experience as a conventional banker for almost four decades, I can attest that conventional banking in India is humane and just, and not usurious and exploitative.
One unique feature of public banks in India is that they offer soft and subsidised loans to the poor, self-employed and farmers. Similarly, in case of defaulters, if a bank is convinced that the default is not willful and deliberate and is on account of genuine circumstances, the loan is restructured or waived and the loss is absorbed by the banks. Every year, thousands of crores of rupees are being written off by banks. Where recoveries have to be enforced, it is done in a dignified manner and after following proper legal procedures. Similarly, the operations of banks are monitored very stringently by the Reserve Bank of India and the interest of depositors; particularly the small depositors are well protected. In short, banks in India are playing a developmental role besides providing banking services. Instead of demonising banks without any evidence, the Shariahexperts should build awareness of the status of public banks in India
One serious complaint against the prevalent model of Islamic banking is that interest is being charged in the garb of service fee. In fact loans from Islamic banks are much costlier than those from conventional financial institutions, particularly public banks. The defenders of the conventional banking, particularly the model followed by public and development banks, argue that they are far different from moneylending and various unethical practices of private sharks.
One issue that must engage us is that if Islamic banking is a viable alternative for us, how we can justify the collapse of so many Islamic financial institutions in India in recent times. We know full well that small investors have been duped in the past in a big way by hustlers claiming to offer Islamic financial services.The protagonists of Islamic banking must offer a satisfactory explanation. The real problem is that we are not prepared for a reasoned debate and the issue acquires emotional overtones whenever it comes up for discussion. Confusion continues to prevail with sharp division of opinion. As a result, the common Muslim is in a fix as to what is the right course of action for him because of lack of clarity on the issue.
Islamic banks have traditionally established sharia boards, employing scholars to rule on whether their products and processes do not infringe Islamic principles. The scholar needs to have expertise both in religion and finance –a strange combination. There is a severe dearth of this expertise .In India most Islamic banks collapsed because managements hired dubious and pliant scholars to endorse equally dubious products. Muslim countries a national body such as a central bank or capital market regulator appoints and oversees a sharia board that is independent from financial institutions.
The situation in India is much different. We do not live in an Islamic state. The spate of failures of Islamic banks in India has caused untold suffering to small depositors. There is no alternative except to transact with conventional banks. There are few reliable and authentic Islamic financial institutions but they have a very limited outreach.Moreover, the common Muslims themselves are increasingly wary of Islamic banking for all kinds of reasons,
Modern day banking has emerged out of the wisdom gleaned over the ages and is a direct weapon for eradicating usurious and unscrupulous moneylenders who have r turned borrowers into slaves and stripped them of all their self-dignity. It will be grossly unfair to equate modern banking with moneylending. In fact money lenders are treated as outcasts in the formal financial system. They have no presence in the universe of civilized finance .it will be foolish on our part if we try to get them into the whole debate .They are a totally alien species.
Development banking is very professionally operated, and in developing economies, interest rates are subsidized to enable individuals and institutions to set up their own livelihood businesses .The giant leaps in all spheres of life have been powered by financial institutions who have promoted healthcare, education, entrepreneurship, self-employment and a host of services that have profoundly influenced human life.
An enlightened discussion is all the more important on account of the complex perplexities that confront the contemporary society. If puritans feel conventional banks can’t fulfill the religious requirements, an alternative choice has to be offered to common Muslims. It will help to crystallize the true perspective for all the stakeholders: the flag bearers of sharia, proponents of Islamic finance, academics, jurists and the global banking community. It is an issue witch concerns the financial wellbeing of roughly 172 million Misaims- nearly 14 per cent of the country’s population o.
The great philosopher poet Sir Muhammad Iqbal argues in his magnum opus, The Reconstruction of Religious Thought in Islam: “The claim of the present generation of Muslim liberals to re-interpret the foundational legal principles in the light of their own experience and altered conditions of modern life is, in my opinion, perfectly justified…..Each generation, guided but unhampered by the work of its predecessors, should be permitted to solve its own problems.”
In Iqbal’s view, “the ultimate spiritual basis of all life, as conceived by Islam, is eternal” and that a “society based on such a conception of reality must reconcile, in its life, the categories of permanence and change”.
(The author is a regular contributor to this newspaper and can be reached at: [email protected])
Reliving Faith in modern times
By Amir Suhail Wani
A voice lost to wilderness or the madman’s rubric, any talk of religion, God, metaphysic, values and reality suffers any of two possible consequences. Giving him the advantage of anonymity, a top notch Jamat i Islami scholar pertinently described modern epistemology with all its offsprings as the means and instruments of ensuing and securing a revolt against the God and religion. Never before was civilization so shallow in matters of faith and never before a unanimous and collective onslaught was launched against the sacred, Transcendent and divine. A mere mentions of words like “Divine”, “sacred” or “Transcendent” makes people, experiencing the opiedation of modernism, to rise their eyebrows. Any talk of worlds beyond the sensual is termed as intellectual backlog. World has seen, now and then, people rising, out of their intellectual sincerity or otherwise rising against religion and God. But historically they could never enjoy the status of metanarrative, but were always, by virtue of historical entelechy confined to margins of civilization. In post renaissance era world has succeeded, by and large, in constructing a civilisation and culture with man rather than God as its ontic reference. This man cantered civilization has paved all the possible ways for criticism and demolition of religious meta narrative.
Let’s come to philosophy first. Modern philosophy, starting with Descartian scepticism and evolving through the stages of Positivism, Naturalism, Materialism Nihilism and Existentialism, modern philosophy seems to have ultimately ended up at postmodernism. The possibilities of future development can’t be ignored nor can it be claimed that postmodernism is an all pervasive philosophical trend claiming universal adherence. But the broader picture of things has unfolded thus. Postmodernism maintains incredulity towards metanarrative and has brought with it a host of questions. Traditionally and even up to recent past man seemed to be unanimous on ontic and epistemic stability of things. But with postmodernism not only have been the institutions of religious and traditional impotence held under scrutiny but the very fundamentals of human existence like language, society and all other institutions of human importance have been deprived of their ontic reference and have been made to float freely in abyss of uncertainty. The case with science has been no better. Being a victim of excessive and inordinate empiricism, the Modern day science has surrendered its inquisitive and rational spirit to sheer scienticism.
Ibn Arabi, a classical theorizer of Islamic mysticism noted that “God is a percept, not a concept”. In this single line, the master has resolved an age old question and the problems associated with it. The notion of “conceptual scheme” as it has been adopted unquestionably alike by scientists and philosophers has brought with it an equal number of goods and ills. Man has turned obsessive to reduce everything to his conceptual categories. The human attitude of dividing a problem into subunits, though it has paid heavily in scientific realm, but has simultaneously brought irreconcilable problems in other affairs of human existence. Modern medicine treats biology disentangled from psychology and this piecemeal approach has landed us in an era where we know more and more about less and less. In a sense we know everything about nothing and nothing about everything. Traditionally things were seen associated and entangled in the cosmic Web. Coming back to human methodology of understanding things by dividing them into subcategories and then understanding things in terms of local mental categories has distorted and ruined our understanding of God, sacred and divine. We need to understand that the laws formulated by human mind are refuted within the physical realm itself. Thus the laws obeyed by matter aren’t obeyed by light and the laws applicable to fermions are completely defied by bosons. So within our physical immediacy are instances to cleave apart our ultimate trust in the laws of physics. The unending quest for unified theory in physics might bring further insights in this direction. Thus we need to be careful and watchful to the fact that the laws of matter do not apply to the realm of spirit. Coming back to God who is neither material nor spiritual, neither defined by material boundaries nor circumscribed by contours of space we need to be all the more careful. While we try to understand God in terms of mental categories derived from our physical realm we need to be very cautious that all these categories do not hold true beyond this material universe. Our conceptual schemes, which in the final analysis rest on the categories of mundane material realm are too coarse and inappropriate to conceptualise and theorise the realm of divine, sacred and godhead. At a point where despite all boasting scientific discoveries man is yet incapable of understanding his basic biology and where despite of conquering the vastness of space man is yet to gain a glimpse of his psychological depths any sweeping statements and miscalculated statements oriented towards reduction of divine to categories of psyche seems but a naive affair. The enlightened theologians, mystics and philosophers of the past have explicitly denounced the access of finite human mind to infinite cosmic intelligence. What God has informed us here and there in sacred texts is to contemplate the nature and our own selves. This unbiased contemplation is sure to bring forth some indirect aspects of divine. Though we shall be fully conscious of the fact that within the physical universe and human civilization there are instances which are heartrending, discouraging and at times they run quite contrary to the notion of divine. But the mystics and enlightened men throughout the history have been able to dissect the veil of appearance and have succeeded in looking at the essence of existence. On having this enlightened vision they bowed their heads and understood the essence of these apparent vagaries of nature. Ibrahim, the father of modern monotheism, Buddha a silent contemplator, Nanak, a socially conscious religious purgatory amply demonstrate this state of enlightenment. Modern scientific mind is highly welcome in questioning the authenticity of religion, aspects of divine and the apparent chaos that is witnessed everywhere in physical and social landscape. There can be no proper understanding in absence of questioning. Likewise doubt is an essential ingredient of faith. But while one raises questions in atheist or any such frame one must have patience, tolerance and wide sightedness to understand theistic point of view. To dub religion irrational for its simple disagreement with science seems a rather constricted opinion. Religion has been a great architect in shaping the course of human civilization and to unfasten our knots with this perennial source of wisdom, learning, inspiration and exaltation will amount to gross intellectual injustice. The need of hour is not to posit theists and atheists as antithetical but to encourage each to understand the point of other. Maybe in this collective endeavour humanity discovers a paradigm that has still not been thought of.
(The author is a freelance columnist with bachelors in Electrical Engineering and a student of comparative studies with special interests in Iqbaliyat & mystic thought. He contributes a weekly column for this newspaper that appears every Monday. He can be reached at: [email protected])
Pleasures of poetry
By Shabbir Aariz
Poetry is a refined manifestation of using language artfully, effectively and persuasively. Priest, poet and blacksmith were the three those stood before the King in ancient times. Priest and blacksmith are easily identifiable but how do we describe poet? The Greek and Latin roots of the word “poet” means “creator” describing one who demonstrates great imaginative power, insight or beauty of expression. Therefore, the poet must be more than a writer of pretty words. A poet while writing poetry, the poet means to reach his audience in the deepest part of their being and wants to make them absolutely sure that he knows what he is talking about, because they are able to understand what the poet is saying so clearly. It is unlikely that a poet seeks fame. Ideally he is just seeking one person who understands; who embraces him and acknowledges a secret that they share; a mutual agreement that they are both same. It ought to have a universal appeal. It should not be confined to a particular time or age. It matters little whether a poet had a large audience in his own time. What matters is that there should always be at least a small audience for him in every generation. One has to take the poetry into one’s heart to fan the fire there and then also light one’s own fires. One amuses oneself with the world over which one finds to have been given dominion and trust that poetry will in the same measure help one to understand and explain it. Enshrined in poetry are the pleasures of entertainment as well as the pleasures of value. Entertaining pleasure suggests mirth and relaxation while as pleasures of value indicates information and learning. Amazingly some believe that poetry with a particular social, moral, religious or political message restricts reader’s imagination but T S Eliot holds that poetry always adds more to reader’s knowledge of the subject and sharpens his/her thinking power for that particular area. According to him, the poet utilizes his own language for expressing his people’s feelings and emotions. The twofold duty is thus performed; directly promoting, preserving and improving the language with an indirect duty to his people. There should be no denying of the fact that a poet is a person of extraordinary intellect and observation with a command over human nature that allows him to versify his people’s emotions in poetry. How interesting is the fact that such expression of feelings also enriches the language and keeps it alive for ever. We are well aware that in this part of the world, Urdu language even after stepmother’s treatment, has flourished more because of its excellent treasure of poetry and its worst enemies use it to properly express themselves. One finds it appropriate to mention Khushwant Singh’s observation while he says that if you are in love, you need to understand Urdu poetry and if you want to understand Urdu poetry, you need to fall in love. No doubt the role of poetry is less certain due to distractions. Electronic boom like TV, internet and computer made it less tempting and lesser reading population. Needless to say that earlier reading was a primary activity of the population and poets represented the spiritual guide of the population, who helped reader identify their most internal emotions, intuitions and imaginations. Yet the role remains the same as a century ago. Poet captures the essence of the world and the society in a unique manner and reflects it to be understood by people. He also captures the essence of internal emotions including joy, sadness, fear, hope as well as any other feeling comprehensive real of emotions. Poetry is an art to engage, to influence and to inspire. Poetry, every time has passed the ordeal of understanding the realities of human life to its readers with an infallible test of blameless style. Poetry appears to have remained an effective medium of articulating the concrete realities with an ability to speak forth ideas ever since the creation of the universe and the man along with it. And various poets have attempted to define poetry. Someone has observed, “poetry is when an emotion has found its thought and the thought has found words”. Sigmund Freud says, “poets are masters of us ordinary men, in knowledge of the mind, because they drink at streams which we have not yet made accessible to science”. He further observes, “Everywhere I go I find that a poet has been there before me”. P B Shelly observes, “poetry lifts the veil from the hidden beauty of the world”. While John Keats says “…… a thing which enters into one’s soul…”. Samuel Taylor Coleridge centuries before has held, “…. For poetry is the blossom and fragrancy of all human knowledge, human thoughts, human passions, emotions, language.” All said, the poetry in its ultimate analyses is to call the soldier to war and a lover into the bosom.
(A leading lawyer and eminent poet, author contributes a weekly column. He can be reached at: [email protected])
Fighting the menace of corruption
By Fida Firdous
Recently J&K Governor publically said that behind the fake appointments in JK Bank there seems some back of political people and involvement of corrupted big fish will not be spared. He without wasting further time he sacked Chairman J&K Bank. Half of a month had gone, where is report? Who is investigating the case? What has been done to fake appointment? If this was not just a news stunt or a political posture, then, why action under rules is not initiated against corrupt people? These are some legitimate questions from the desired youth of J&K to be answered?
Governor in his speech said that Kashmir is the victim of politicians and corruption. The statement was widely appreciated and welcomed by all. Without naming any particular political party he denounces any relaxation on corruption belonging to any political party or person.
Pretend to mention here, why the system is corrupted? Who makes us corrupted? And what are the consequences of corruption? I’m not writing an essay but revealing what I have witnessed. Let’s talk about home? J&K is among the most corrupted states in India a study of Centre for Media Studies (CMS) in its annual corruption study – CMS 2017- has placed Jammu and Kashmir among top corrupted states.
Answers of these questions are simple, “helplessness” of giver before the corrupted system. There is evidence that corruption at the top of a bureaucratic system increases corruption at lower levels. Manipulating the social and political environment.
Paradoxically, increased corruption in JK has increased the level of frustration in the young competent youth. This is not evident in jobs only, but other sections as well. There is a well phenomenon that giving and getting bribe both is corruption. But this phenomenon is administrative in practical. Until transparent system will not be enforced by the government organs to eliminate corruption. The giver and taker will no longer be active in malpractice. So, primary duty of eliminating corruption depends on government organs.
Unemployment is the outcome of corruption. The consequence is deviation of youth and addiction of drugs and involvement in unlawful activities. Youth which is called backbone of a developing country like India and in the conflicted state like JK has its worst results seen so far.
Today if you are worth competent, merit holder and lacking approach you are at ground zero. For giving bribe you need a political or bureaucratic approach, Agents of corruption. Those who don’t fall under such category will fall prey and sick. What approach means? It doesn’t mean a transparent approach for promising justice, no, not at all. Here it means something else. My simple words may heart some of the persons who are involved in the recent backdoor appointment through political approach and get jobs in JK Bank being incompetent and undesirable that marred the merit of desirable ones. That is why I failed to qualify interviews many times due to the notorious and corrupted system.
Giving job to undesirable person for being a voter or supporter for political gain and use them for propaganda is a bumpy idea. This can’t be the subtlety of politics. Does it mean after pursuing PhD I should follow illiterate politicians for adjustment? Bear me it happens in my home, where an educated person becomes the political bedfellows for getting a job. They are habitually now? They are in a mess of materialistic world where aspirations of the desired candidates are not delivered properly. At this point of time they become the victim in hands of influential ones or bribers. In a way society is dying. Young youth getting frustrated. Those who facade corruptions are agents of evil.
Don’t take it simple. It is a curse. A curse like cancer. Frustration is due for a postgraduate unemployment youth looking a 10th class person’s in job without any merit. It notionally has bad impact on our society. Further, the more corruption, the slower the economic growth. One of the worse consequences of the corruption is to produce incompetent society. Developed countries are mainly depends upon the competent people, and developing country like India or Kashmir, incorporated incompetent people either by bribe or influence, this incompetency can never contribute to our society. Hence we are thousand years back then the developing countries.
No doubt, corruption is inevitable fact of human civilization. It is the malaise attached to the largest democracy of the world that is India. From getting a job to IAY facility or to any legal case nothing goes without giving a bribe. But it is actually we people who are promoting it; we gave bribe to skip the queues to get driving license without giving any test. There are thousands of cases (files) pending rounding from table to table in our highest office civil secretariat from years reasons best known to everyone. The disposal of our work culture is corrupted.
Corruption in J&K has becomes a national security threat. We can’t stop it, but there are ways to reduce it. It starts with the government but it includes everyone from lowliest to the highest. In short corruption has to eliminate somewhere and it stops at the ballot box and it stops in the home. Politicians are well aware about this fact, but they are not ready to take any lesson from the pages of history. PV Narasimha Roa is the worst example that history has ever met.
J&K Anti-corruption Bureau, J&K State Vigilance Commission and other agencies must eliminate corruption at a point that it doesn’t affect the whole society in a bad way. An honest man must believe in honesty, everyone is not corrupt. Coordination of young educated youth towards corruption should be voluntary and open. (The writer cam be reached at: [email protected])