Muhammad, Islam & Finance. Barry Maxwell

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1 Muhammad, Islam & Finance Barry Maxwell

2 Saudi Arabia & USA

3 Pre-Islamic Arabian Peninsula Harsh terrain No rivers & lakes Mecca Water & food scarce No empires or large scale civilizations No normal law enforcement

4 Muruwwa: Pre-Islamic Arab Code of Behavior Tribal Solidarity as highest level of government Loyalty to the Family, Clan, & Tribe Protection of the weak against other tribes Generosity to the poor Fidelity in keeping promises Patience in misfortune Deterrence of hostile action, moderation of violence Persistence in revenge Extends to travelers when away from their tribe Bravery in Battle Defiance toward the strong Promotion of trade/migration Hospitality to the visitor Religious shrines off limits to warfare

5 Trading Patterns Change Spice & silk trade with east still big Early 6th century (500s) Byzantine conflict with Sasanid Persians restrict northern trade routes Routes thru central and south Arabia used more - both pass thru Mecca Mecca becomes a trade hub Meccans turn more to commerce, pulling away from Bedouin nomadic habits Some Meccans prosper more than others

6 Muhammad s Concerns Muhammad a capable trader, not as rich or well connected thru family as some Concern for poor, orphaned, widowed Acquisition of material wealth: New experience to Bedouin Becomes more important than maintaining tribal traditions and spiritual/ethical well being Great material inequality becomes social inequality Exploitation of poor & weak Widows High interest rates (similar to Loan Sharks today) Ethical boundaries of tribal code breaking down

7 Muhammad s Revelations One God, same as Christian and Jewish God, called al-llah in Arabic Word of God revealed to him in visions over time (beginning 610), basis of Quaran Saw himself as correcting Judeo-Christian religion Muhammad convinces others Muslim: One who has made the profession of faith Islam: Those who surrender to the will of God (Name of the eventual religion) Umma: Community of believers as new Tribe, members socially equal Some unconvinced, feel threatened >> conflict

8 5 Pillars for All Muslims Muslim: Profession of faith in the one God, Muhammad as messenger Prayer 5 times per day, wherever Pilgrimage or Hajj to Mecca Fast during daylight of Ramadan Alms for the poor: Zakat (2.5% of wealth) Personal or Government collected

9 Sunni vs Shia Muhammad dies (632): Succession Closest male relative or Community choice? Community chooses Abu Bakr, rather than son-in-law/cousin Ali Battle of Karbala (680) Grandson Husayn killed/martyred Split survives today Shia religious scholars/leaders powerful Shia tend to feel more oppressed, militant

10 Arab Conquests Much of Arabia united by Muhammad as Umma His successors spread the Umma across middle east Byzantine & Persian Sasanids distracted Long conflict between them, internal decay Muslims more tolerant, less greedy rulers Arabs & Bedouin better at desert warfare

11 Geography of Arab Empire

12 Arab Empire ? Trade flourishes Arab protection allows movement of goods centered on Mecca, Damascus, Baghdad Use of check to pay rather than gold Centers of learning established Use of paper Scientific reasoning (predates Renaissance) Scholarship valued

13 Arab Decline - Rise of Islam Arab Empire fragments Crusades Mongols invade end of Arab rule Ottomans eventually take control of middle east - Are muslims, but ethnic turks Move on to challenge Europe until 1700s Napoleon invades Egypt 1798 Begins era of European/western intervention

14 Sharia: Path to Watering Hole Quaran or revealed text: oral >written Sunnah: Sayings and doings of Muhammad Reason by analogy Consensus of the Community of Muslims (Umma) Judicial opinion (Shia place greater weight)

15 Is Islam Inherently Violent? Muhammad, for his time, is humane & forward thinking Rights for women Christians and Jews revered as Children of the Book Inclusive Politician Conquered offered role in society if behave/pay taxes Did not have to convert References to killing unbelievers generally when they attack first Jihad defined as struggle between good and evil, not against unbelievers

16 Muhammad s Early Moral Injunctions Work hard, progress, use available resources Earning a profit good, but must earn it morally No cheating, deceit or exploitation: No taking advantage of widows and poor by stealing their assets while managing them No maneuvering poor into high interest loans, penalties No loans that charge interest (Riba) No immoral enterprises No hoarding put assets to work, invest or loan Help others to work Charity for the needy, not lazy No Muslim better than another

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