A COMPARATIVE STUDY BETWEEN CONTEMPORARY GLOBAL ECONOMIC SYSTEM AND ISLAMIC ECONOMIC SYSTEM

Submitted by

 Mohammad Mustafa Surzil

SID: 02-0-71-812-131

Commonwealth Executive MBA (CEMBA)

 

Submitted to

The Dean

School of Business

Bangladesh Open University

 In partial fulfillment of the requirements of the degree of

Commonwealth Executive Master of Business Administration (CEMBA)

July, 2009

 

Certificate

The project entitled “A Comparative study between Contemporary Global economics and Islamic economic system”   prepared and  submitted by Mohammad Mustafa Surzil [SID # 02-071-812-131] in partial fulfillment of the requirements of the degree of Commonwealth Executive Master of Business Administration (CEMBA) is original in nature and has not been submitted earlier either to this university or to any other institution.

 

(Dr. Md. Mayenul Islam)

Associate Professor

School of Business

Bangladesh Open University

Project Supervisor 

CEMBA

Acknowledgement

 The researcher would like to convey his gratitude to the following institutions and individuals who extended their sincere support and encouragement for the completion of the research.

Dr. Md. Mayenul Islam, Associate Professor, Bangladesh Open university for his guidance in the preparation of this manuscript.

In addition, special thanks to Mohammad Ariful Haque, Assistant Professor, Department of Electrical and Electronic Engineering, Bangladesh University of Engineering and Technology whose familiarity with the subject and ideas were helpful during the early programming phase of this undertaking.

I would also like to thank, Mr. Arif Iqbal Khan of City Bank  for all the inspirational support I have received from  him, Thanks to Mr. Alfaz Uddin, Senior Executive Officer, International Division, Sonali Bank Limited , Head office, Dhaka for his support and suggestions during the project’s primary activities.

Thanks also to my honorable Professors of The School of Business, Bangladesh Open University for their valuable input and special thanks to Commonwealth of Learning for letting us join the program.

Finally, to the Almighty Allah وتعالى سبحانه, who has given me the strength and ability to complete the project paper successfully.

 

Mohammad Mustafa Surzil

CEMBA

Abstract

The project paper presents a comparison between a system of economics once ruled over the world successfully and a system practiced world over at present. One which is in practice today and other one is completely forgotten for last few decades. It is an historical obscure that one system functioning very well and satisfying the needs and problems of mankind was suddenly thrown out of focus. this is the main reason for the researcher to take initiative in putting forward the research proposal. One of the main research area of this project is in the past and its glorious presence in past is somehow forgotten by many of the economist and teachers of economy today. Any observer of the state of the Capitalist economic system can see that the system is collapsing. Whatever efforts the capitalists have planned to salvage the system can only at best relieve its pain for the time being. This is because the causes of the collapse require serious treatment of capitalism’s foundation. In  this research paper we tried to find out if any pollution exists in the present global economy and whether the Islamic economic system can provide the mankind with a best possible solve.

 Allah وتعالى سبحانه says in the Quran,

“It is Allah who created the heavens and the earth, and sent down from heaven water wherewith He brought forth fruits to be your sustenance.” (TMQ 4:32)^28a

 “Verily, thy lord doth provide sustenance in abundance for whom He pleases and He straiten it, for He doth know and regard all his creatures.”
(TMQ 17:30) ^28b

 These verses among many show that Allah وتعالى سبحانه has provided all the needs and beneficial things for man, and has given sufficient resources to satisfy material need of mankind. 

In the eyes of the capitalist west there is relative scarcity of resources available in the world, and peoples demands for these resources are endless. Hence each nation and in fact the world should concentrate on more and more production. The higher the amount of wealth produced, the higher the number of people that will satisfy their demands through the process of economic activity.

The locus of economic problem in Islam therefore is different than the economic problem discussed in western civilization today.

 One system focuses on the production of wealth and the other focus on distribution of wealth to satisfy the need and instinct of mankind. Objective looks similar where as the view of angle is different. Context of the project therefore is in finding out the reality behind the transition from the Islamic economic system to the contemporary global economy. researcher wishes that his effort would be of certain benefit to all concerned with the economy. The research paper highlights the differences between this two system and tries to find out the best possible fit for the mankind through intensive literature/Internet survey and interviewing/discussing with professionals.

 For over 1000 years of Islamic history it was the world’s leading civilization, over time complacency crept in the Muslim world and they began to lose their intellectual basis. The sudden emergence of capitalism in eighteenth century, Western Europe exposed this weakness, While the Europeans were progressing in technology the Muslims were being left behind along with their intellectual basis. They were left behind due to their weekend understanding of Islamic systems and to defend new challenges of economy. Whilst still believing the system provided by Allah وتعالى سبحانه Muslims referred to the west blindly forgetting that these Capitalist solutions contradicts Islam.

 The research paper also discusses the reasons on why the world economy discarded the Islamic economy and adopted a system of economy which needs continuous reforms. Then highlighted impact of this changes in the Govt. and social systems of a country and its consequences. Finally recommended and mentioned the conclusive proposals upon the research problem.

• International monopoly alliances are a big threat to the weaker nations. [Cheprakov (1970)5]
• Western countries after establishing industrial dominance behind protectionist walls, tend to advocate free trade in order to kick away the ladder from the followers and consolidate their dominance. [Joon Chang H (2003)38]
• The WB and IMF policy advocated are based on poor diagnosis of economic conditions of the country. [WB-Turkey (2004)41]
• In March 2003 IMF admitted in a paper that globalization may actually increase the risk of financial crisis in the developing world. [IMF (2003)42]
• Present world economy do not have well thought theoretical and philosophical insight dealing with human needs and instincts. [Nabahani (1990)11]

The research paper finally recommends that, the economic system practiced over the world today is about to collapse due its own weaknesses and Islamic system should be adopted by the nations to overcome all the problems of mankind. 

1. Traditional economic system should be replaced with a best-fit economic system like Islamic economy;
2. More analysis of Islamic economics and social principle is necessary to face the complex economics problems of the modern society and the challenge of present financial crisis;
3. The Universities and other research institutions involved in economic research should have arrangements for further research on Islamic Economics;
4. Steps should be taken to form a Muslim Common Market and to build up Islamic Monetary Fund to support the muslim nation;
5. Steps should be taken to establish an independent Islamic news agency;
6. Appropriate avenues be opened for discussion on economic system to generate public opinion on best fit economic system for the time;
7. The Governments of the Muslim world should take steps to come together and execute and implement the ideals of Islam at state and socioeconomic level;
8. Muslim scholars should come forward and re-establish the Islamic economic system once again.

পুর প্রজেক্টটা এখানেই দিব, আপলোড প্রকৃয়াধীন আছে, একটু সময় লাগবে । যারা এর আগেই পুর প্রযেক্টটা দেখতে আগ্রহী তাঁদের পিডিএফ টা ই-মেইলে পাঠাতে পারব।