Let me make it clear first what it really means to have an economic or political system prescribed by your faith. It means the "ashraful maklukat" has chained itself. It means he has closed all the doors of reason upon itself. He is now nothing more than a slave. He will have to follow that "system" at the cost of his 'capacity for reason' and at the cost of his liberty. All of the above would have been fine some seven or eight centuries ago. When everything, that goes around in our world, was supernatural phenomena. When it rained not because the monsoon wind carried a load of moisture across a region but because some really 'pious' man has prayed for rain to happen. When Sun was not eclipsed by moon but by the wrath of Some 'Allah wala'.

Now Human beings have conquered those fears. They have controlled their environment. Science and the scientific method has given a degree of certainty to what we know. The beauty of Science lies in the fact that nothing is permanent in it. It has capacity to learn from its mistakes. If science has embraced something wrong and you can prove it fallacy with evidence and with reproduce-able experiments, it will love to correct itself; it will welcome the new findings. But an "Islamic/Christian/Buddhist Economic or Political System" won't allow us that luxury. We will have to follow the God's "command" at the cost of any improvements that can be made. Will the modern mind be contend with that blind following?

And it isn't really just a matter of choice between the systems, that we can put our finger on it, push a button, now Islamic mode is on, now western mode is on. No man, million of lives hang on those system. One wrong click, one wrong push and millions can die of hunger, hundreds of thousands can loose their jobs, thousands can loose their education. We cannot operate on the whims of some ideologue.

Now you yourself are an Economics, which is a science, student. If you think, on the basis of evidence, that 0% interest rate is better for an economy, then you should present your findings in form of a thesis. It will be viewed and reviewed by your peer economists without any bias or prejudice. No prejudice because a scientist is a truth-seeker who is trained to find the truth. If your proposals are true and worthy then rest assured that truth will prevail sooner or later.


Here is my answer to your first question. "I am sorry to disappoint you brother but there exists no such thing as an Islamic Economic System. And I am glad that Islam hadn't given us one because if it had, its details would have been determined 1400 years ago and today we would have to follow those details without benefiting from what humanity have learned in the years in between. Who would have enforced that system? No angels would have descended from heavens to enforce it. It would have been us humans, who wouldn't have cared that poor has bread to eat or not as long as their own kids have cake to eat and as long as an "Islamic system" is in place. Man's dogma would have justified all the atrocities.

Quran is there to make us better human beings, who respect truth. And if we are good human beings then the system we are part of will automatically become Islamic.




It is forbidden in Quran. But may be we need to understand Quranic orders in perspective of those times. Back then, there were no financial institutions. Individuals who loaned money demanded interest that was mostly equal or more than the original sum. And this higher rate of interest is understandable. All Abrahamic religions forbade riba. And interest rate was higher because there were very few individuals who were willing to lend money against the teachings of their religions. The supply was short so the price was higher. Similar phenomenon happens with the trades of illegal drugs and other contrabands.

As is mentioned in this Quranic ayah "O you who believe! Eat not Riba (usury) doubled and multiplied, but fear Allah that you may be successful."
Aal-e-Imran, Chapter #3, Verse #130

Why Quran mentions this phrase doubled and multiplied?
This phrase is referring to those very high rates of interest which were arbitrarily demanded. Quran have refrained us taking interest is all well and good, It has asked us to give Qarz e hasna, which is a very desirable and appreciable practice. I wouldn't ask anybody to charge interest from others but there really are some psychological and situational limitations, some of which I have mentioned in my earlier post, to this informal practice of Borrowing and lending.
Now we have financial institutions and a very efficient system of currency. Rates of interest aren't depended on individual needs. rather it is the score of factors that determine modern interest rate. And I doubt if it ever exceeds 20%.

So I am not the only one but many scholars have maintained that with advent of modern banking the negative aspects of interest have vanished so Quranic ayahs may not apply to the banks.


you have my answer above.



Of course they can be taxed. In fact, I think it's best if govt collects zakaw and then spends it to make systematic improvements for welfare of poor and needy.


Answer is there in your first question.

May be you want to reconsider this question. Allah has sent us here for Azmaish not to build some 'Islamic empire'.

Believe me world was a lot more miserable place back then. Hunger, disease, war and lawlessness was more widespread than they are today.

Buddha has answered your this question above.

I have just read about on wikipedia. Not sure if i got it completely.

I don't know any thing about it.

Regards