Building an Islamic Case for Open Markets

Transcription

1 Building an Islamic Case for Open Markets November 2018

2 Sponsors

3 Name:

4 Letter from Rector We at the International Islamic University, Islamabad, believe ourselves privileged to be associated with this unique centre of learning in the Muslim world which strives to combine the essentials of the Islamic faith with the best of modern knowledge. I am pleased to know that Iqbal International Institute for Research & Dialogue (IRD) is going to organize a 2-day international conference on Building an Islamic Case for Open Markets to be held at the International Islamic University, Faisal Mosque Campus, Islamabad on November 2018 in collaboration with International Institute of Islamic Economics (IIIE), and Islam & Liberty Network (ILN) Kuala Lumpur. It is a matter of great honor for International Islamic University, Islamabad to host this important conference of eminent scholars and academicians. I am especially grateful to the team of IRD and their efforts to put together a galaxy of scholars and academicians for their visit to Pakistan to interact with their Pakistani counterparts on a topic that is both timely and sensitive. Prof. Dr. Masoom Yasinzai, Rector, International Islamic University, Islamabad and Chairman, IRD Governing Council

5 Letter from President I am happy to know that Iqbal International Institute for Research & Dialogue (IRD) is a 2-day international conference on Building an Islamic Case for Open Markets to be held at the International Islamic University, Faisal Mosque Campus, Islamabad on November 2018 in collaboration with International Institute of Islamic Economics (IIIE), and Islam & Liberty Network (ILN) Kuala Lumpur. In the short period of its existence, the Institute has already held a number of international and national conferences, symposia, panel discussions, distinguished lectures and interfaith dialogues. I am proud that the IRD brings researchers and scholars of the highest caliber from all over the world in the field of contemporary Islamic thoughts as Iqbal fellows to work their own research project, give public lectures, conduct seminars, teach courses and interact with the students and Faculty of the IIUI. The Iqbal International Institute for Research & Dialogue (IRD) has created fairly good facilities for organizing such events including residential accommodation for visiting scholars and plan to expand its activities further by establishing collaborative relationship with well known think tanks, research organizations and scholars from all over the world. Prof. Dr. Ahmad Yousif A. Al-Draiweesh President, International Islamic University, Islamabad

6 Sponsors Table of Contents Letter from Rector of International Islamic University, Islamabad Letter from President of International Islamic University, Islamabad List of Sessions & Chairs Agenda Speakers

7 ROLE OF STATE IN ECONOMY COUNTRY STUDIES Dr. Attiq-uz-Zafar Director General International Institute of Islamic Economics IIUI, Islamabad CURRENCY MARKETS Dr. Waqar Masood Khan Former Secretary Ministry of Finance Government of Pakistan Islamabad ISLAMIC ECONOMICS & OPEN MARKETS Prof. Dr. Asad Zaman Vice Chancellor Pakistan Institute of Development Economics Quaid-e-Azam University Campus Islamabad Dr. Farkhanda Zia Director Female Campus International Islamic University Islamabad COUNTRY STUDIES-II Prof. Dr. Dietrich Reetz Iqbal Fellow Iqbal International Institute for Research & Dialogue (IRD) Islamabad INSTITUTIONAL PERSPECTIVES Dr. Faheem Khan Former Professor International Institute of Islamic Economics IIUI List of Sessions & Chairs

8 DAY 1-14 November AM Registration AM Inaugural Session (Opening Remarks) Welcome Address AM Keynote 1 Dr Nima Sanandaji AM Tea Break PM Role of State in Economy Dr Ali Hassania Foyasal Khan Dr Noor Fatima PM Currency Markets Shaykh Umar Vadillo Hina Haq PM Lunch PM Country Studies - 1 Jani Kinnunen Md. Thowhidul Islam Dr. Mustapha Radji 3:15-4:00 PM Social Responsibility and Protection Dr Omar Bortolazzi Admir Cavalic PM Networking & Tea Time

9 AM Registration AM Panel Discussion Islamic Economics & Open Markets Dr Asad Zaman & Ali Salman AM Tea Break AM Lessons from History Raza Naeem Dr Humaira Shahid PM Institutional Perspective Dr Hafas Furqani Fatiha Talahite Afzal Pervez PM Lunch PM Country Studies- II Majdi El Mustapha Mohamed Machine - Chian Saba Kausar Muhamad Iksan :15 PM Moderated Discussion with participants & speakers Dr Husnul Amin Ali Salman PM Closing Ceremony & Tea Time DAY 2-15 November 2018

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11 Primer on Islam and Economic Liberty In the pre-islamic Arabia, Makkah, which hosted Ka bah as the holy place for worship, had become a melting pot of religion, commerce and politics. Tribes from a far would travel to pay their respects at Ka bah and engage in commerce. Muhammad (d. 632 AD), the Prophet of Islam, who belonged to Quraish, inherited a rich tradition of religious, commercial and political leadership, all infused into his personality. Before he claimed that the angel Gabriel had revealed Allah s message to him, he was well-known in Makkah and Arabia as Sadiq and Ameentruthful and trustworthy. He was an established man of commerce, to whom people would come for dispute resolution. It should not be surprising therefore that Muhammad left a rich heritage of wisdom, knowledge and ethical principles about economy. Ali Salman CEO, Islam & Liberty Network, Malaysia

12 Dr. Hafas Furqani Lecturer, Universitas Islam Negeri Ar-Raniry, Banda Aceh, Indonesia Theory Of Distributive Justice In Islamic Perspective: A Conceptual Exploration The problem of distribution in society is considered as an extension of consumption and production in economic discourse. Distribution is about distributing the output of production, in the form of goods and services and also its factors of payment (interests, wages and profits) to the owner of the factors of production. The consumption of society will be efficiently distributed through market mechanism. The discussion, however, has been extended to include what should be distributed and how distributive justice can be achieved.

13 Enterprise and free markets were born in the pre-islamic and Islamic Middle East Enterprise, market economy and ideological support for free exchange are often assumed to have a Western origin. The true root of these practices and ideals are however found in the pre-islamic and Islamic Middle East. Market practices, economic theories and even industrialization in Europe evolved not independently but as a continuation of the Middle Eastern market tradition. Dr. Nima Sanandaji European Centre For Policy Reform And Entrepreneurship, Malta

14 Dr. Noor Fatima Assistant Professor, International Islamic University, Islamabad, Pakistan Institutional setup of Market Economy& Property Rights in Islam After 9/11 the economics of religion has become the academic discourses not only in the Muslim countries but also in the west. There is ever growing demand to correlate between Islam and Economics. Property Right and private ownership is the basic concept of modern economy and structure of a liberal economic system. The socialism forbids the right of property rights; there is no concept of private property rights as it issocially claimed equally by all. While Capitalism advocates property rights which are mostly unrestrained.

15 Mantiqat al-firaq: A Shiite Economic Theory Manṭiqat al-firāq, a Shiite economic theory, points to an area in religion without any legal and religious source. This theory was firstly presented by Allamah Sayed Muhammad Baqir Ṣ adrin his book Our Economy (Iqtiṣādunā). According to the theory, religion has allowed the Islamic ruler to lay down rules and regulations in certain social matters, especially in economy, taking into account the rules and according to the needs of time. Dr Ali Hasannia Assistant Professor, Shahed University, Tehran, Iran.

16 Dr Mustapha Radji Associate Professor, University of Mostaganem, Algeria Sufi or Salafi Islam who is more pro-open markets? Survey Study from Algeria The differences among the religious people in Islamic context between Sufi and Salafi groups to look at the impact of the affiliation of religious muslim on their attitudes toward open markets. The Study is based on data collected by social survey with questionnaire conducted within Sufi and Salafi groups in Algeria and other people not affiliated.the questionnaire include Items measuring pro-open market attitudes (Trust in others, Accepting diversity ;Price of Work, Private ownership and Competition, Taxation and access for women to the market).

17 Economic Model: Lessons from Madina Wer will discuss Madina al-munawarah at the time of the first Muslim community as an economic model for mankind. The fundamental principle upon which we set our discussion is that: the revival of Islam is the return to the amal of ahl al-madina. Under this foundational principle, in order to eliminate our Riba economy needs to understand not just what is haram (riba), but to understand what is halal: what is the alternative model to riba. We also state that without a model it is impossible to create an alternative. Instead, without a model, we find ourselves simply making cosmetic changes to a capitalist model which is constructed upon riba. Dr. Humaira Shahid Author of Devotion and Defiance, Pakistan

18 Dr. Omar Bortolazzi Assistant Professor, American University in Dubai, United Arab Emirates From Tradition to Innovation:Cash Waqf and Corporate Waqf as Dynamic Models for Social Responsibility Based on Imam Zufar s view (8th century), cash waqf can be invested through mudarabah and the profits generated would be spent for charity and philanthropic purposes. This paper aims to offer a design of the cash waqf management system through a dynamic model. Cash waqf is being successfully implemented in many South East Asian countries (Malaysia and Indonesia predominately) and is expected to become one of the alternative instruments for the poverty alleviation programs.

19 Banking in the Islamic Republic of Iran: Caught Between Faith and Performance We are going to have a glance at history of ideas in the contemporary Iran that lead to the relatively unique understanding of Islamic banking, monetary policy, and finance. Persian say, between my moon and the Moon, there is quite a difference. The very same is true when it comes to the Islamic Republic of Iran in general and the Islamic Banking in Iran in particular. Mohamad M. Chian Fellow, Islam & Liberty Network, Iran

20 Fatiha Talahite Senior Research Fellow, CNRS, CRESPPA, Universities of Paris, 8 and Paris Nanterre, France Property Rights Based on Muslim Law, Economic Efficiency and Gender Equality: What Convergence? The issue of property rights is central to contemporary development theories which emphasize the role and quality of institutions. The neoinstitutional theory is based on the transaction costs theory as well as on the property rights theory, which studies the effect of property rights on the behavior of individual agents, to show that, under the assumption of free contractual relations between agents, the model of property right that tends to impose is the most efficient.

21 Historical Development of Waqf Governance in Bangladesh Waqf is the permanent endowment by a Muslim of any of his property for a purpose recognized by the Muslim Law as religious, pious or charitable. It is a permanent arrangement, which becomes immediately effective, and cannot be kept in abeyance; and it can never be confiscated. From its inception, Waqf has been an integral part of the development of Muslim society. It played a prominent role in the socioeconomic and educational development of the Muslim society of Bengal since the early advent of Islam in Bengal in the beginning of 13th century. Md. Thowhidul Islam Assistant Professor, International Islamic University Chittagong (IIUC), Bangladesh

22 Raza Naeem PHD Candidate, University of Arkansas, Fayetteville, USA The Socialist Sufi of Sindh: Social Justice and Radical Democracy in 17th Century Sindh Taking issue with the central theme of the conference by arguing that a case needs to be made, not for Islamic open markets or Islamic capitalism but for Islamic socialism, and a return to the concept of welfare in Islam, as exemplified three hundred years ago by Sufi Shah Inayat Shaheed ( ) and his movement; which symbolized social justice, civil liberties, equality and radical democracy at a crucial time in the Indian subcontinent, when the Mughal Empire was crumbling and such values were non-existent, in that the majority of the Sufis of Sindh had abandoned the preaching and practice of social justice and had become purely worldly landlords.

23 A Comparison between Islamic and Conventional Stock Prices Performance: Evidence from Pakistan s Equity Market The Karachi Meezan Index is selected as a proxy of Islamic index and the Karachi Stock Exchange Index is selected as a proxy of conventional index. This study uses the daily stock prices of KMI-30 and KSE-100 indexes, ranging from period 1st January 2008 to 30 June Further, in order to compare the performance of both indexes, different performance indicators such as performance ratios (Beta, Sharpe ratio, Treynor ratio, and the Jensen's Alpha), GARCH models, and stochastic dominance approach are applied. Saba Kausar Visiting Lecturer, International Islamic University, Islamabad, Pakistan

24 Hina Haq PHD Candidate, SEECS, NUST, Pakistan Navigating the Cryptocurrency Landscape-An Islamic Perspective Almost a decade on from the launch of Bitcoin, cryptocurrencies continue to generate headlines and intense debate. What started as an underground experiment by a rag tag group of programmers armed with a Libertarian manifesto has now resulted in a thriving $230 billion* ecosystem (Coin Market Cap, 2018) with constant on-going innovation. Scholars and researchers alike are realizing that cryptocurrencies are far more than mere technical innovation; they represent a distinct and revolutionary new economic paradigm tending towards decentralization.

25 Why (Not) Understanding Economic Liberalism From Public Opinion? Indonesia and Malaysia Compared Globalizations has emerged as fascinating medium for stimulating trade across nations and borders, improving economic progress for humankind. Moslem majority countries are not an exception from this development. This global phenomenon also shaped scholar interests for studying relationship between religious believers and market behaviors based on varieties of social sciences. Abundance social theories had been developed to understand religious factors and its relation with market behaviors. Yet, so many questions were still unanswered. Muhamad Iksan Senior Researcher, Paramadina Public Policy Institute (PPPI), Indonesia

26 Jani Kinnunen Islamic Countries Clustered and Analysed by Economic and Political Freedoms and GDP PHD Candidate, Åbo Akademi University, Turku, Finland This studies focus on the relations of economic and political freedoms in the Islamic world. It is a widely shared idea that well-being goes hand in hand with economic and political liberties at least in the long run. From the original dataset of 37 Islamic countries, 31 with enough data available, are under analysis based on their economic liberties and certain political freedoms together with variables of GDP per capita and GDP growth rate during the period

27 Lebanon s Experience With Economic Freedom within A Muslim Majority After a 25 year-long civil war and Israel s invasion, Lebanon emerged in 1991 with a struggling economy and destroyed infrastructure. Given the complex political and religious structure of Lebanon, it is agreed that the prime minister of the country should always be Muslim whereas the president would always be Christian. Majdi El Mustapha Senior Policy Analyst, Lebanese Institute for Market Studies, Lebanon

28 Foyasal Khan PHD Candidate, International Islamic University Malaysia The Role of Government in the Twenty- First Century: An Islamic Economic Perspective In American history, most governments accepted the concept of laissez-faire (leave it alone) which opposes government interference in the economy. However, in the aftermath of the 1929 stock market crash that led to the Great Depression ( ), involvement of government in the economy has considerably increased. Economic policy and thought, from the late 1940s to the early 1970s, was dominated by Keynesian economics that favors government spending and strong market regulation.

29 Liberty, Wealth and Morality Wealth has gone from the prehistoric labour market, sow and reap one s own produce from the land to a system of online currency trading via the likes of Bitcoin. Wealth is usually generated via systems of markets, from day-to-day trading within the physical market place to the electronic trade of shares and stakes. Dependant on the system of that particular society, this can be done via open markets or controlled trade systems usually controlled by a government. With all of this comes an issue of morality and by what ethical standard should trade and the market system be regulated against. M Afzal Pervez Public Speaker, United Kingdom

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