ID :
58002
Tue, 04/28/2009 - 18:04
Auther :
Shortlink :
https://oananews.org//node/58002
The shortlink copeid
NEED TO RELOOK GLOBAL ECONOMIC SYSTEM
KUALA LUMPUR, April 28 (Bernama) -- The current economic crisis requires nations to relook the state of affairs of the global economy and not just focus on "what got us here".
"More importantly, it is what we can do collectively to get us out of this
economic mess and the lessons to be learnt from the crisis," said the Chief
Secretary to the Government Mohd Sidek Hassan, Tuesday.
He pointed out that the world was facing an extraordinary economic challenge
-- the worst since 1945.
"Confidence in the financial markets has been damaged and major industrial
nations are simultaneously in recession. The World Bank has also predicted that
for the first time in more than a quarter of a century, global trade will shrink
this year," he said.
Sidek said this while opening the International Conference on Islamic
Economies and Economies of the Organisation of Islamic Conference (OIC)
Countries here Tuesday.
His speech was read out by the International Islamic University (IIU)
rector, Prof Dr Syed Arabi Idid.
The event, also attended by OIC secretary general Prof Ekmeleddin Ihsanoglu,
was organised by the IIU and the Islamic Development Bank (IDB).
According to Sidek, who is also IIU president, the faith of the world in the
dominant paradigm of economics has been shaken by the current crisis and some
"very serious questions are being raised about its fundamental tenets."
"As the world's leading economies, which preach laissez-faire capitalism,
embrance wider government intervention and over-arching regulations, there are
many of the opinion that socialism is making a comeback.
"So, is it time to think of the possiblity of an economics revolution
grounded in Islamic economics?," Sidek asked.
He said although Islamic economics and Islamic banking and finance had come
a long way over the last 30 years, there were still those who believed that
these approaches were normative and a matter of personal choice.
"In other words, despite the failure of Wall Street and the catastrophic
impact on the global economy, they do not recognise the validity and relevance
of the Islamic concepts of accountability in business and finance," he added.
He explained that there was no doubt that over the last 30 years, Islamic
economists had made their presence felt by producing literature which provided
enriching insights into issues and policies.
However, given the current economic challenges, their job had only just
begun and it was expected that they would have to struggle with a host of issues
at this stage.
"It would be useful to remember the pitfalls of being prisoners of the
dominant paradigm. The 1997-98 Asian financial crisis showed that countries that
were intellectual prisoners of this dominant paradigm, suffered a great deal.
"Malaysia dared to think out of the box, and won the day, although it was
ridiculed at the time by advocates of the dominant paradigm. Hence, Islamic
economists would be well served if they dare to think outside the box of the
dominant paradigm," said Sidek.
He said in the current global economic turmoil, Islamic banking and finance
had come under sharp focus and was being appreciated by some quarters for its
reliability, soundness and social responsibility, with even the Vatican
suggesting that the Islamic financial system had the potential of strengthening
the western banking system.
Sidek said although OIC member states had a combined population of more than
a billion, with a total market size bigger than that of India and closer to
China, they had yet to realise the full potential due to a lack of
integration. -- BERNAMA
"More importantly, it is what we can do collectively to get us out of this
economic mess and the lessons to be learnt from the crisis," said the Chief
Secretary to the Government Mohd Sidek Hassan, Tuesday.
He pointed out that the world was facing an extraordinary economic challenge
-- the worst since 1945.
"Confidence in the financial markets has been damaged and major industrial
nations are simultaneously in recession. The World Bank has also predicted that
for the first time in more than a quarter of a century, global trade will shrink
this year," he said.
Sidek said this while opening the International Conference on Islamic
Economies and Economies of the Organisation of Islamic Conference (OIC)
Countries here Tuesday.
His speech was read out by the International Islamic University (IIU)
rector, Prof Dr Syed Arabi Idid.
The event, also attended by OIC secretary general Prof Ekmeleddin Ihsanoglu,
was organised by the IIU and the Islamic Development Bank (IDB).
According to Sidek, who is also IIU president, the faith of the world in the
dominant paradigm of economics has been shaken by the current crisis and some
"very serious questions are being raised about its fundamental tenets."
"As the world's leading economies, which preach laissez-faire capitalism,
embrance wider government intervention and over-arching regulations, there are
many of the opinion that socialism is making a comeback.
"So, is it time to think of the possiblity of an economics revolution
grounded in Islamic economics?," Sidek asked.
He said although Islamic economics and Islamic banking and finance had come
a long way over the last 30 years, there were still those who believed that
these approaches were normative and a matter of personal choice.
"In other words, despite the failure of Wall Street and the catastrophic
impact on the global economy, they do not recognise the validity and relevance
of the Islamic concepts of accountability in business and finance," he added.
He explained that there was no doubt that over the last 30 years, Islamic
economists had made their presence felt by producing literature which provided
enriching insights into issues and policies.
However, given the current economic challenges, their job had only just
begun and it was expected that they would have to struggle with a host of issues
at this stage.
"It would be useful to remember the pitfalls of being prisoners of the
dominant paradigm. The 1997-98 Asian financial crisis showed that countries that
were intellectual prisoners of this dominant paradigm, suffered a great deal.
"Malaysia dared to think out of the box, and won the day, although it was
ridiculed at the time by advocates of the dominant paradigm. Hence, Islamic
economists would be well served if they dare to think outside the box of the
dominant paradigm," said Sidek.
He said in the current global economic turmoil, Islamic banking and finance
had come under sharp focus and was being appreciated by some quarters for its
reliability, soundness and social responsibility, with even the Vatican
suggesting that the Islamic financial system had the potential of strengthening
the western banking system.
Sidek said although OIC member states had a combined population of more than
a billion, with a total market size bigger than that of India and closer to
China, they had yet to realise the full potential due to a lack of
integration. -- BERNAMA
