The Muslim nations have low GDP. Their majority is underdeveloped. This really is mainly due to their poor leadership and management. Many of them won their freedom in the colonial forces following the The Second World War, but they didn't or couldn't focus on leadership development, they required for their future. Consequently, because of poor leadership and management and insufficient good governess they've been making less progress. It's not future but self enforced poverty. Ought to be fact, the Muslims nations hold the wealthiest ingenious regions around the globe. They're became a member of geographically from The other agents to Indonesia, aside from India and Israel. They occupy major ocean, air and land trade routes. They produce almost 50% from the oil around the globe. Nearly 1 / 3 from the raw material of world is supplied by them. Yet the absence of excellent governess and occasional level leadership and management, they're determined by exterior financial loans and aid. The nation like Egypt which was noted for its fertile lands now imports wheat.
Islamic Development Bank released a study which states that in 1996 the entire exterior debt of their member nations was 618.8 billion dollars, as the Muslims assets within the western banks were believed around 800 to 1000 billion dollars. This means the financial loans which Muslim nations originate from free airline are, really, their very own money. They borrow it and, then, return with multiple interest.
If the money were chosen through some Islamic financial system and thru Islamic banks with appropriate leadership and management abilities, the Muslims nations might have become economically independent.
When arrived at human assets, the Muslim nations have abundant human assets their ratio of youth human population is more than Europe. If the hr is trained when it comes to technology, education and executive training they are able to be a great resource to depend onto make tremendous progress, as China has been doing. Technologies are forget about limited to couple of technologically advanced nations. Eventually, technology turns into a common inheritance of people, provided, they would like to.
Another issue in the Muslim nations is unequal distribution of wealth. The current system of great interest based economy favors the affluent capitalists who get take advantage of the savings from the common people, who deposit it staying with you, so when they create enormous profits allow not the most popular individuals to share these profits however for meager fixed interest rate, that is again reclaimed from their store within the title of charge to the price of production. Which means that the capitalists use money of depositors to have their own benefit and really outlay cash nothing because the obligations of great interest are put into the price of production.
Another major cause, which interferes with natural economic operation of free marketplace is speculative transactions, specially in the stock marketplaces, which additionally with other negative implications, add up to the unequal distribution of wealth.
Islamic economic climate not just enables the marketplace forces to function freely but additionally provides mechanism to ensure they are regular. It is applicable 2 kinds of control around the financial economic activities:
First of all, it delineates the cleavage of Halal and Haram. It prohibits interest, speculative transaction. This can help to die monopolies and economic benefits achieve to any or all.
Next, the machine of zakat, charitable organisation, and certain other obligations make the Halal earnings distributed to folks with low earnings who don't have buying energy. This charitable organisation enables them to go shopping, hence economic activities increase.
Regrettably, Islamic economy at condition level is though not used. It's however the Islamic economic climate which will help the Muslim nations to create real economic progress and win their economic independence. This needs great abilities and education. The Muslim nations should focus education and technology. They ought to launch leadership development and executive training programs to boost the near future leaders and Islamic economists.