A three day conference with a leading Islamic economist

Professor Dr Muhammad Anas Zarka visited the Markfield institute a faculty of Islamic finance and Banking of Gloucestershire University from the 14-16 of October. He is a leading economies with a Phd from Pennsylvania university. he has lectured extensively in many countries. he was invited to shed light on the ongoing global financial meltdown.

The topic was entitled, DEBT EARTHQUAKE IN ECONOMICS AND THE SHARIAH PERSPECTIVE.

Professor Dr Anas Zarka is also a leading shariah scholar part of the supervising board of the Kuwait financial institutions. he has authored several books and articles on Islamic Finance and economics. his key interest in advising Muslims bankers on staying on the path of Islam, not getting distracted with greed and unethical practices. the key facts gain from the conference is the fact that debt reselling has been the key cause of the financial crisis. also the deregulation of financial markets. banks deliberately gambled away peoples investments and savings, undermine every fundamental rules and now they are being bailed out. what an irony. Dr Zarka suggested that, debtors should have been rather compensated by the federal government of U.S and the U.K. the debt of every single person should have been wipe out and new measures taken to avoid another crisis, yet the government did the opposite. The call now from all leading economies and bankers is to re-regulated and be tough with reckless bankers and the stock market. from an islamic perspective, debt cannot be business, one is not allow to make money out of debt. this is a cardinal principle in islamic finance. the conventional system allows banks, insurance companies and the stock market to resell debt in the securities market. this is what causes over inflated house prices and the sub-prime mortgage industry.

fundamentals of Islamic finance part 1

Fundamentals of Islamic Banking: BY SUNTOU TOURAY PART 1
Introduction
Islamic banking derives its rule and compliance mechanics from the rulings of the sharia, the divine law of God. Islamic banking came to be as a result of conventional banks dealing in usury (interest) which is sternly forbidden in Islam. Muslims are required to live a life of Godliness; there is no separation of religion and other activities. Islam is a way of life that encompasses every dynamic of human dealings.
Money is not considered as a commodity or having a time-line which move according to interest rate fluctuations. Money is measured according to the value of goods and services which it is exchange during buying and selling. This is sanctioned by the sharia.
Islamic banks operate on the basis of profit and loss sharing, the term “profit is for that who bears risk”. Islamic banks completely reject interest as a cost for the use of money and loans as an investment vehicle. (aaoifi 26-27)
This means interest as the central tool use by banks across the globe is illegal as an item for pricing money.
The quran states that “trade is allowed and riba (usury or interest) is haram forbidden”. Muslims live by the commandment of Allah. The forbidden things are avoided at all cost. Interests are the key determinant of modern banking in measuring and valuing transactions in the west and else were. The prohibition of riba is very clear in the Quran, just like Alcohol or engaging in act of fornication or adultery. Why is it that riba or usury is part and parcel of the banking systems in muslim countries?
DR Umer Chapra stated that “due to the historical foreign occupation of most muslim countries, and particularly because of the domination of the world financial markets by western interest-based system”. Umer Chapra’s statement touches on the fact that, the global super powers control the markets of the global economy. Money being a medium in trade, the measurement of money is also a vital factor in valuing individual nations currency. This means even if muslim countries wish to avoid interest rate system, they have to design other tool of valuing their currency.
Clarifying the issue of interest or riba is paramount in Islamic countries determine to eliminate usury in their economy. Interest is the same as riba according to the consensus of muslim jurist across the world.
What tools is that Islamic finance is offering as an alternative to modern conventional interest regulated banking? The advocate of Islamic banking and the muslims economist have device tools that are halal or compatible with the teachings of Islam. The Islamic financial system based its operation on equity type of dealing instead of debt. There are fundamental difference between debt and equity.
The Islamic finance operates on trade; profit and loss sharing. Muslims economist put forward the following primary and secondary mechanism as a tool for conducting legitimate transactions. The primary Islamic finance tools are:
“Mudaraba (passive partnership), musharakah (active partnership),
The secondary tools are:
Murabahah (cost plus service charge), Ijarah wa iqtina (hire-purchase), salam (forward delivery contract), and Istisna (contracted production). The former are equity-based and relatively more risky because they involve profit-and-loss sharing, the rate of return on them is not stipulated in advance and may be either positive or negative. The latter involves credit and is relatively less risky because profit-loss-sharing is not involved.”
The secondary mode of financial tools is similar with interest regulated tools but there are big differences between the two. The three key differences are that: secondary modes are sales or leases, rather than outright borrowing and lending. Also the sharia forbid the selling of properties or commodities that one does not own or possess, the financiers takes risk once the ownership and possession of property for sale or lease is complete. And finally it is the price not the interest rate that is stipulated in the course of the transaction and once the price is fixed, it cannot be changed if there is delay in repayment due to unexpected circumstances. (Dr Umer Chapra,the future of economics, 258-261).
The avoidance of interest and over-burdening poor borrowers makes Islamic banking worthwhile and rewarding. Loans advance to customers are interest free. The deposit funds of wealthy Muslims are invested in ventures that are islamically acceptable. For instance, the bank avoid investing in forbidden projects and stocks such has alcohol companies, pornography, weapon manufacturing, conventional banking stocks etc. The banks do business with companies and institutions whose transactions are sanctioned by Islam, example, food products, medicine, media, cloths, energy etc. The first sample Islamic banks are the Bank Al-idakhar Al-mahalliyah 1950, this was set up by Ahmad Al-Najjar. The banks mobilises local savings and invest in rural development projects. The activities of the bank conform to agreed Islamic injunctions. There transactions include, opening deposit accounts for customers that did not pay interest, profit-loss share service account provide people with the opportunity to contribute a portion of the gains in charitable activities. This bank was closed down by the Egyptian government due to fear that the bank was undermining the secular government economic policies. The bank was actually a success attracting over a million customers in a short period of time.
The second successful Islamic financial institution is the Malaysian Tabung Hajji. This was a hajj fund were members save up for their pilgrimage to Mecca. The bank attracts large number of small deposits. The savings of customers are also invested in Islamicaly sanctioned institutions. This bank provides the catalyst for the first Malaysian Islamic commercial bank.
The petrol dollar flow into the Middle East provided the people with much needed resources to transact their wealth on investment ventures more islamically acceptable. People wanted to be comfortable with the activities of their banks. They don’t want interest and neither haram activities, so the policy makers were pressure to device means of engaging investors in a religious compliance financial method.
The economic tools provided by dominant conventional economic order is not acceptable to Muslims. The expectations of Muslim leaders became intense and resounding. In 1970, the idea of strong Islamic financial institution was negotiated by the ruling members of the Gulf States and Saudi Arabia. The Islamic Development Bank was set in 1975. The funds for this bank were provided by Saudi Arabia, Libya, The United Arab Emirates and Kuwait. The bank’s main duties was to provide interest free loans that complies with the profit and loss sharing principles of Islamic banks, directing development funds to poor areas, train individuals on the mechanisms of Islamic finance and above all show the world that there is an alternative financing economic methods available more ethical and caring. (Tripp. Charles, 2006 Islam and the moral economy)
Islam encourages the seeking of wealth.
Islam considers wealth seeking an act of worship. It is desirable. Classical Christianity encourages abstinence from worldly activity. Islam is against monastic life style.
Wealth is a blessing from Allah the almighty. Pursuing economics activity in the legal and acceptable ways is pleasing to God.
If islam encouraging accumulating of wealth, what is wealth? All things having monetary value.
Another definition is all goods and services having economic value. Quranic definition of wealth is Maal. Maal is define as anything that has a material value.

THE KUKOI aka KUFIN COUP OF 1981 IN BANJUL

The trails of kukoi kufin samba sanyang
Ranked among the saddest part of The Gambian history is the event of the 1981 aborted coup. Kukoi as was noted from his election loss from contested in the 1977 election for NCP left him with bitter taste and pain. Kukoi lost with a very high margin. Reliable information heard it that Kukoi aka Kufin left the Gambia sometime after losing the election. Bitter and angry, Kukoi left for the paradise of dissident wanabe hot spot, the capital of fostering antagonist.. Libya Arab Jamahiriya. Kukoi travelled to Libya, spend some time there, build up his revolutionary mentality of overthrowing the government of the double barrel name president DK Jawara.
Kukoi is said to proceed to Russia from Libya. He later resettled in Sweden, the favourite country of the former MOJA die-hards. Sweden became synonymous with MOJA dissidents, still some former members are base there, although some abandon the cause and join president Jilanka aka AJJ.
Kukoi stayed in Sweden passing himself as a Doctor. He use the title Dr Kukoi. People later doubted his doctorate title and rather referred to him Dr Liar. He was said to be uttering humongous untruthful statements to numerous Gambians resident in Sweden. But one thing is clear, Kukoi made his intentions well-known. He has ambitions to overthrow Jarawa. People doubted him; they took it for his usual boosting and misleading utterances.
Kukoi on the other hand was serious, he intends to bring misery to the slumbering and peace loving Gambians. His election oain may not have disappeared even after four years.
The atrocities of 1981 are still fresh in the minds of eye witnesses. The brutal murders of the Senegalese army officers parachuting at yumdum international airport by the coupes. This act is against international rules of engagement in war situations. But hell, Kukoi and his accomplish careless just like today, Yahya and his members are carrying on jailing, beating and sometimes killing defenceless Gambians.
Kukoi and his brutal coup members reign for nearly three days, but during that short period, many elders were made to utter foul words against Jarawa and his government. Among this people are the late Sanjali Bojang, a PPP die-hard, Ismaila Suso of radio Gambia and many prominent elders. I was told that many people die because of their reliance on jujus. This people erroneously believe that their tons of jujus would protect them from bullets. How wrong they thought. Yet, till today, yahya Jammeh parade’s himself with jujus all over his body thinking, he can be saved by them when trouble arises. Gullible thinking.
What role did the MOJA communist played in the coup? This need to be known. Because it is stated that in Sweden, some Gambian stage a demonstration against the presence of Senegalese forces in Banjul. Yes, many Gambian wanted that Jawara to be exited a long time ago, but coup is never the best way to replace a leader. Yahya is a proof to that. He thinks overthrowing Jawara meant being an immortal holy leader that no Gambian has the right to question him and his actions. The key to understanding our present is opening our eyes to the past. The MOJA members who may have partake in the 1981 coup should detail to us the reasons for their involvement in a bloodbath and why they all ran to Sweden.
What is your experience of the 1981 coup?
Detail accounts have been documented about the 1994 coup, all horrendous. We were told the coup was bloodless, yes, when you are not an army officer. Seriously, i sympathises with good officers of the Gambia national army who were either killed or locked up for no reason and underwent brutal torture by their fellow Gambians. This is why it good we understand the ideas of leadership aspirant of our country. The notion that Gambians are peace loving and so on and so forth is rubbish. We are capable of anything just like our brothers in Sierra leone and Liberia.

WAR ON DRUGS, BY DR BILAL PHILIPS PART 1

DR. ABU AMEENAH BILAL PHILIPS
WAR ON DRUGS BEGAN 14 CENTURIES AGO
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The State of Qatar is to mark Anti-Drugs Day on June 26 as part of a global campaign against illicit drugs. The production, sale and consumption of intoxicating addictive drugs have become a world-wide problem. Today, hardly any country is safe from its destructive influence. The number of lives lost and ruined yearly because of drugs is unimaginable. Furthermore, the problem has been increasing exponentially with every decade. Due to the increased awareness of law-enforcement agencies around the world to the problem, an international war against drugs was declared some years ago and international bodies, like the UN, have made it a significant part of their agenda. However, for one-fifth of the world’s population, the anti-drugs campaign began 1,400 years ago, when the rest of the world was drowning in drug-crazed debauchery. It began in a small city called Madinah, in the north of Arabia when the following Qur’anic verses (5: 90-91) were first revealed to Prophet Muhammad (peace be upon him) and his followers:
"O Believers! Intoxicants, gambling, idolatry and fortune-telling are abominations devised by Satan. So, avoid them in order to be successful. Satan seeks to stir up enmity and hatred among you through intoxicants and gambling, and hinder you from the remembrance of Allah and from regular prayer. So, will you not then desist?" (Qur'an, 5:90-91)
The term used in the revelation, khamr, refers to all forms of intoxicating drugs as Prophet Muhammad (peace be upon him) stated, "Every intoxicant is khamr and every form of khamr is haraam (forbidden)." The Prophet (peace be upon him) was also quoted as saying: "Every intoxicant and every narcotic is unlawful," and, "If a substance intoxicates when taken in large quantities then even small quantities of it are forbidden." The most common and popular intoxicating drug in the seventh century was alcohol and it remains until today, in spite of the wide variety of synthetic drugs which are currently on the market. Consequently, its production, sale and consumption were all absolutely abolished with the revelation of this verse in the heart of Arabia 14 centuries ago. War on Drugs
Clauses in the Prohibition
It is worth noting that the prohibition of drugs in these two Qur’anic verses addresses a number of socio-religious issues with far-reaching implications.
Label: Branding Drugs as an Abomination (Rijs).
By labeling drugs as filth in this verse, Allah addresses the natural inclination of human psychology to avoid what is filthy, dirty and nasty. No matter how clean and pure something might seem at first, once someone informs that it is, in fact, impure and filthy, humans are naturally inclined to avoid it. The divine label of "filth" also counters the various enticing names which people may give to drugs, like ecstasy, ice, etc. Prophet Muhammad (peace be upon him) also referred to drugs as filth saying, "Intoxicants are the mother of all filthy and evil acts."
Classification: Equating drugs to Gambling and Idolatry
The Almighty put intoxicating substances in the same category as gambling, where most people lose their savings, become addicted and destroy their lives. The harm of gambling is so well known that most countries have laws prohibiting most of its forms. Taking drugs is a big gamble. Many people die from it and most have their lives ruined. Only a few who become addicted to it manage to escape its clutches and return to a normal life. In these verses drug consumption is also put on par with sacrifice to false gods; something so objectionable that most societies today have abandoned it. When a person takes drugs, he sacrifices his health, his wealth and his faith to the false gods which his own desires have become, as the Almighty said, "Have you seen the one who makes his desires his god?" (Qur’an)
Health and wealth are blessings from God which are to be used in beneficial ways pleasing to God. They are responsibilities about which everyone will be asked on the Day of Judgment. The Prophet (peace be upon him) said, "No one’s feet will move from his place of resurrection until he is asked about five things: his health and how he used it, his wealth from where he earned it and how he spent it, ..."
Drug consumption is also made equivalent to fortunetelling, which is absolutely forbidden in Islam. Fortunetelling, which claims knowledge of the unseen and the future belonging exclusively to God, is a major act of disbelief. Thus, Allah implies that the very faith of those who consume drugs comes into question. Prophet Muhammad (peace
- 2 - War on Drugs
be upon him) reiterated this point by saying, "A person is not a believer while he drinks alcohol."
By classifying drugs on a par with games of chance, idolatrous practices and the fortunetelling, all of which have been pronounced as absolutely forbidden, the prohibition of drugs is further emphasized.

DEPOSIT GUARANTEE BY BANKS

The funny policy of depositors not being able to protect their deposits in cases of bank bankruptcy is crazy. some governments like the Irish have guarantee 100% of deposit by customers in the events of bank collapsing. why can't all government do the same and protect the wealth of hardworking savers?
the main reason is due to the fact that depositors sign to some terms, this may include bearing liability in case the bank fail. rich surplus income individuals deposit money in banks for the gains of interest. the bank make them money when the interest rates are good. so the bank as a business policy lend this surplus deposits to deficit individuals at a cost. this is what is referred to as the cost of borrowing.
surplus income depositors benefit from the extra-amount of money borrowers pay to the bank, the bank takes its part and pay out the agreed rate of interest to the depositor. the partnership is an open understanding. when things aren't working fine, the depositor suffers just like the bank, so if the bank collapses the depositor is now in trouble, his wealth is trapped.
this is what makes saving huge sums dangerous. lately new saving banks have risen, like the online high interest bearing deposit. this banks are backed by some main street banks, but the credit crunch has made the online savers vulnerable has their parent banks are also in trouble.
but the depositor who plays a vital role for deficit income people to get loans, should be protected one hundred percent has they help the bank make money and the public get funds. this help businesses and people afford to get mortgages.
bank takeovers is now becoming a norm. an ugly and scary norm. global financial power houses are impotent in the face of unpredictable events.
in all this media hype, laymen may be asking, where has the money gone? what happen to all the funds in wall street, in London stock market etc? well who knows. the people are not being told the whole story. new parameters are being set. new power houses will be emerging. the poor will be suffering in all of this.

UNFORTUNATELY

Sadly i wasn't able to upload the Halifa DVD on youtube. it is too long, nearly two hours talk was delivered. i am still finding some who can may be divide it into parts so that the time it takes to upload it is low. also viewers can appreciate the content without being bored.

BB DARBOE V SAHO SABALLY FACTOR

THE BB DARBOE V SEKOU SABALLY FACTOR
I was with the view that Western Kiang’s favourite son BB Darboe was in politics before Sahou Sabally of Sabach Sanjal. BB a venerated figure in Kiang is well respected. I have not yet come across a single person from Kiang from the many known me who has anything bad to say against him. It is more like a messianic figure. I couldn’t believe it. What is it that made BB that unique?
Is it humility? Is it caring and being a good MP for the Kiang folks? Or was it that, the Kiangkas just wanted someone of their own they can emulate and use as an example when the talk is about powerful figures in Gambian politics?
For me from little Sandou district, criticising our MP’s is another pass time. In-fact, there is hardly anything positive I could say about the new generation MP’s. Is BB too good to be true?
I don’t know anything about Sahou Sabally. Nothing at all. Just that he was a vice-president once after persuading DK Jawara to stay on whilst BB urged him to leave. Many Kiangkas querry that all the good of BB has limitations. He was more inward looking, he never induce sustainable development towards Kiang
BB entered Real politics in 1982. He was an ambassador in Senegal during 1981 coup, he coordinated the Senegalese government involvement in reinstating Dk Jawara.
Governance is the key issue for all politicans. Sahou sabally was alleged to be openly corrupt, power hungry, and manipulative. Whilst BB is more self-centred and inward looking. The talk that BB was of help to many Mandinkas is more than bogus. Like other big wigs in Jawara’s cabinet, BB was little different from other selfish politicians who only have eyes for their immediate families and children of their buddies. The Terikafo talk is also nothing but petty gang culture; just like the other narrow cliques existing buttering the bread of their close members and masonic style favouritism.
There were many intelligent young Mandingo men and women who could have benefited from the favouritism of BB and co if there was any such thing taking place. But in reality, intelligent poor folks from all ethnic divide hustle for themselves to gain accesses to higher education.
The Man from Dunbuto can be praise for some few issues, that his lack of involvement in corruptible activities detrimental to the people of the Gambia. On another levels, he was no mandingocentric at all. That is identifiable from his spouse.
Sahou Sabally on the other hand entered politics well before BB. His records indicate that, he first contested in an election in 1972 which he won with a result of 2000 votes exactly. He continues to contest in Sabach sanjally until the coup in 1994. BB on the other first contested in an election in 1982 general elections. The famous Dunbuto son was not a match for Boto Camara NCP, he scored a total of 3,676 votes against Boto’s meagre 966 votes in 1982 elections. BB too kept wining ever since then until the 1994 coup.
What was the difference between BB and Sahou? Some will say their different levels of integrity and professionalism. One uses power to achieve his desired goal, the other due process. Politicians in the third world defer a little. They offset each other on different levels. Does the argument against BB hold water? He was inward looking in terms help and favours and that he should have extend much needed assistance to his folks back in Kiang, after all MP’s are meant to do the bidding for their electorates. BB was indeed ready to replace Jawara but experience Sahou knew how melt the bread of BB. Sahou knew how reach out the Banjul king makers, he uses such connections to side line BB, thus he became the natural successor. BB and Sahou are two contrasting individual, a good case study can be conducted on them.
BB’s record in Kiang is remarkable; he won in 1987 by 3,653 votes, again in 1992, he won by 3,511 votes. The guy could have been wining so long as he contested, I bit even today. Fame is addictive!!
To the family and supporters of BB and Sahou, the intention of this small work of mine is not castigate the two gentle men old enough to be my Dad but an academic exercise on former public officials. Feel free to debunk my assumptions and claims.