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Some
Islamic Basics
Islam
aims to establish a just and moral social order through the agency
of man, rooted in justice. Islam does not distinguish between the
religious and the secular or between the spiritual and the temporal.
Within the framework of Islamic law each person is given freedom of
action subject to the limitation that the individual's actions do
not violate the rights of others (Mirakhor,
1989). Amr bi al-Ma'ruf wa nahi 'an al-munkar (enjoin the good
and forbid the wrong) is the Qur'anic concept that holds the key to
the worldview and value system of Islam
(Ansar, 1989)
Islam's
economic system is an integral part of Islamic life. The expression
used for Islamic economics (iqtisad) literally means the "state
of being even or equally balanced." Iqtisadi activities are
considered to represent a means for showing love of God.1
Some differences from Western economics, in terms of emphasis,
follow:
-
Westerners
may be influenced by materialism; Islam emphasizes eternal
values;
-
Westerners
focus on human laws as governing humanity's well-being; Islam
sees an omnipotent God;
-
Westerners
regard resources as limited; Islam sees resources as sufficient
(however, it prohibits waste);
-
Westerners
maintain that wealth can be accumulated; Islam condemns such
accumulation while others are in need;
-
Westerners
regard virtually any activity that leads to profit as lawful; in
Islam ethics and humanitarian endeavors play an essential role;
-
Westerners
allow supply and demand to govern; in Islam there are rules
relating to prices and wages;
-
Westerners
tend to favor private ownership; Islam acknowledges at least
three types of ownership, including state ownership (Al-Hasani,
1989). When some of the rules of Islam and iqtisad are reviewed
in light of the structural and operational issues impacting
denationalization, areas of potential friction come into focus:
-
The
welfare and security of employees;
-
The
optimum technique for privatization (Islam frowns upon
shareholding, but accepts state ownership);
-
Ethical
awareness on the part of managers and employees; Islam sees the
ethics of the righteous individual as governed by both
internalized principles and external controls;
-
The
rights of the various members of the stakeholder family, beyond
investors and creditors;
-
Environmental
protection and the avoidance of waste.
The
causes of friction have been presented in realistic terms. Unrest
has been mounting over unemployment and ethical issues. In Pakistan,
opposition to privatization and pressure from fundamentalists to
implement Islamic business practices continue to pose risks.
Egyptian labor is strongly opposed to privatization of the state
sector, fearing loss of jobs; layoffs following privatization are
expected to further increase social tensions. Morocco's biggest
union, the Democratic Labor Federation, believes that privatization
will cost jobs and further concentrate wealth among the
Casablanca/Rabat elite. The Algerian government has called for a
"social pact" to soften the flow of the movement toward a
market economy. The Speaker of the Kuwait National Assembly has
demanded a probe of allegations of insider trading said to have
occurred in the State's latest share sale, which has already been
alluded to.
Call for Action
The
problems of denationalization must be solved by using a combination
of Western and Islamic solutions. The Western solution would call
for improvement in the denationalization process, including
availability of proactive audit support. The Islamic solution would
seek to mitigate the effect of structural deficiencies. Time is of
the essence.
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