Wrongs to Rights: The Global Financial Crisis Offers an Opportunity to Lay the Foundation for an Equitable and Sustainable Economic and Social Order

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Although economists have documented many anomalies in the behavior of both national and global markets, no attempt has been made so far to fundamentally restructure the global financial system so that it would be equitable and just to both the producers and consumers. This paper follows upon the recent call of the Vatican to explore the Shariah based financial system as an alternative to the current riba (usury) based system that has dominated the world ever since goldsmiths discovered the 'fractional reserve banking' as an excellent way of making money. It highlights the fundamental weaknesses and the contradictions of the current riba (usury) based system as compared to the Shariah based system. It offers a tentative road map out of the current financial crisis.

Publication Title

Islamic Horizons

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OA Disciplinary Repository

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