Unraveling the mystery behind Islamic banking by Ahmad Mati
It
is no more a new concept or news highlight, the practice of Islamic banking and
finance. With the emergence of Jaiz Bank (though after a rumble raw) and later
some Islamic insurance companies (takaful Insurance) it was currently augmented
with the issuance of Islamic Bonds (Sukuk), for some people the word “Islamic”
which keep appearing is not a welcome thought. The word Non-Interest might
appear appealing and comforting. All things being equal, the understanding of
the general principles supersede the long debated acronym of both.
The
idea of equity in economy, social justice, equal opportunity for all should be
the parameters which our collective thought and understanding should be channeled towards. Depending on the name you call it restructuring, true
federalism, also depending on your understanding of the concept whether it
means control of resources by state, regions, lopsided government appointment
or even going back to the old system of regional government. Tentatively all
boils down to the feeling of social justice, equal opportunity for all, equity
in wealth distribution. Plethora's of debate and writings have continued to spur
out from different angles, disciplines depending on the interest it want to
protect.
The
poor man that finds it difficult to get two square meal a day, or the one who can’t
afford taking his children to the expensive private schools, or those ones that
only experience eating meat during Salah festival or Christmas celebration,
majorly by the mercy of their neighbors or identified rich men in their
community. Invariably that kind of person does not care about the concept you
call it or the acronym you gave it. During the world saving day (Tuesday, 31
October), the International Institute for Islamic Banking and Finance Bayero
University Kano organized a public lecture on Cooperative in our societies majorly Kano, with the key
speakers from both private sector and the academia, the audience where all
enticed and moved with the wonderful and miraculous opportunities our
communities stand to get if effectively applied and managed, I was thrilled and
made to understand how if effectively managed, we can solve numerous of our
countless problems as a society and a nation with sustainability and
accountability. It was said Kano has more than 5 big major market, one of the
speaker from the private sector made a rough analysis of how cooperative can
strive in this market with little contribution ranging from one hundred Naira
to one thousand naira daily, we were all in shock imagining the figures we saw
which runs in billions monthly and how that can transform our people and our
cities. As usual with Nigerian gatherings, everybody was apportioning blames to
various quotas, but it was clear government need to put down the required laws
and regulations in place, the government must be more visionary and pragmatic.
We all left with the conclusion that as citizens we need to organize ourselves
and be part of the solution rather than lamentation.
Looking
at some of our compounding problems, ranging from economic and social, there
must be a set framework or philosophy which as a country and people must be
committed to achieving. The interesting reality is how countries like
Singapore, Malaysia, Bangladesh and Europe in general are carefully utilizing
some of this concept and principles which Islamic economics propagate. For
example “Foundations” which are practiced in Europe and Waqf (Hubs) which was
active in Islamic history, it also interest me how Europe understand complimenting
the private and public sector through the voluntary sector in a way of NGOs and
Foundations which is equivalent to Zakat, Waqf and Sadaqah Institutions in
Islamic framework.
It
is pertinent for our people to have the right mind-set and attitude which
consequently translate to economic development and prosperity. It is high time
we acknowledge the flows that come with capitalism, as the popular saying goes “the
rich get richer and the poor get poorer”. As community we must not encourage
laziness and exploitation at the same time we must reward hardworking and
honesty. Economic benefit should come from putting effort in adding value
rather than manipulating or outsmarting the system. Well I am still going back
to my acronym “Islamic economics” has a unique and sustainable solutions to
many of our compounding problems, therefore looking at the concept (subject
matter) from the application point of view will make us appreciate, and
consequently spark real development with minimal fluctuations of Booms and
recessions, of Inflation, stagflation and deflation.
“The reform of an economy must first and foremost
begin with the analysis and understanding of...its people. This is because it
is only the people that can reform an economy. An economy per se cannot reform
the people...” Prof. Aluko
Ahmad Mati is a graduate student of Islamic banking & finance
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