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BaKhabar pdf - Bihar Anjuman

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Capitalism<br />

By Shakeel Ahmad <br />

Capitalistic world order has incentive to ignore<br />

the backward sections of society<br />

Adam works in his two acre farm the whole day, from dawn to dusk ongoing business, but why are they ignored as a measure of success?<br />

literally, without caring much for his leisure, food, or health. His wife The answer to this question validates the simplistic definition of<br />

takes good care of the household and the two children, sends both to capitalism beyond any doubt.<br />

school ready with their lunch-boxes, water bottle, and the Ignoring the humans has great many incentives for the capitalists;and<br />

increasingly-getting-heavier school-bags. The next thing she would capitalism cannot succeed without incentives. If you pay the<br />

do is to cook the breakfast for Adam, and deliver it to him in his farms. employees less, they cannot accumulate wealth, so cannot enter into<br />

From dawn to dusk, she is also engaged in the daily chores without business to compete with you. If they have enough money, why<br />

much of a change, except when she goes to her parental village for a should they work for you? Why should they work at all when in the<br />

few days when the children have their school closed for some interest-based economy, their money brings them easy money<br />

vacation. Her effort is not even valued for adding to the GDP numbers without doing any work? So, if you want employees in sufficient<br />

or the national income. She may ask why? That may be left for the numbers, you should do everything to keep the people in penury. A<br />

country’s economists to answer. But, Adam and his wife’s efforts can working class must exist forever, and in sufficient numbers, to serve<br />

most likely help them survive, unless some natural calamity destroys those who must enjoy being the masters of masses.<br />

the crops; and this is not as uncommon as we believe – hailstorms,<br />

floods, and drought – the calamities strike in many ways. All of Adam’s The popular banking and finance industry established by the capitalist<br />

thinking faculties have to be concentrated on earning, none on world-order promotes the interests of capitalism by making “interest”<br />

spending. Spending comes as naturally as the calamities, and he has as the backbone of<br />

to use his earnings to meet the demands of these notices of spending, t h e s y s t e m , a n<br />

like the EMI (Equated Monthly Installment of bank-loan), school fees, indispensable tool so<br />

shopping for daily needs, for the medicines, ever-rising electricity strongly embedded<br />

bills, and so on … While festivals are supposed to bring joy to us, Adam in the psyche of<br />

gets frightened at the thought of an impending festival when he has to e v e r y o n e a s<br />

manage more cash to make his wife, children, and parents happy.<br />

equivalent of the<br />

blood circulating in<br />

Kamal does not need to work at all. His efforts are focused on enjoying the human body that<br />

his time as much as possible in as many different ways as conceivable. imagining a financial<br />

He needs to apply his thinking faculties to find out innovative means world-order without<br />

to spend his money for quenching his thirst for more and more i t i s c o n s i d e r e d<br />

amusements. He has to continuously think of something different beyond sanity.<br />

every week because the same avenues of enjoyment do not bring<br />

delight for long, and he gets bored. He does not need to use his M y n e w b o o k * -<br />

intellectual abilities to think about how to earn, because his income is Islamic Banking and<br />

guaranteed almost forever, at least he feels that way. His ancestral Finance: The Future<br />

wealth lying idle in his bank account in the form of paper money earns of Financial World<br />

for him interest which is more than enough for his needs, and it goes Order - has made<br />

on accumulating more and more because the interest money he is not efforts to prove that<br />

able to use gets him more interest every consecutive month. No tax a n a l t e r n a t i v e<br />

needs to be effectively paid by him because of the tax-saving mechanism is indeed<br />

mechanisms cleverly built in by his wealth management consultant available which can<br />

gifted to him by his late father.<br />

be used to internalize<br />

ethics into business,<br />

The equation gets perfectly balanced with some people like Adam remove the gamble<br />

who must continue to work and others like Kamal who must continue of greed, and gift the inhabitants of this earth a financial world-order<br />

to spend. Is this balance perfect?<br />

established on the foundation of real assets and rock-solid values of<br />

fairness and justice. Islamic Financial system, being that alternative<br />

Money makes more money; and only money can make more money system, promises to be the future of the new financial world order<br />

–if we could understand capitalism in as simple terms as this; we may which delivers public good, not greed, and keeps financial institutions<br />

be accused of being too simplistic; but are we really far from the truth? far away from bankruptcy.<br />

Although humans have also been proposed as an important<br />

component of the “capital”, have you ever seen human capital The future is definitely bright for the Islamic banking and finance<br />

included in the balance sheets of companies? While Return of industry. They have already established a niche by roping in the<br />

Investment (ROI) carries the maximum value as parameter of success, Muslim community. And their appeal is expanding, particularly with<br />

as if investments alone bring “returns” and the humans play no role, the number of proponents of Ethical Banking and Finance on the rise<br />

even a later variant - ROA (return on assets) – which considers all in other communities. In order to give the conventional system any<br />

assets as the source of success does not consider humans as a semblance of competition, it has to grow out of the niche, and<br />

component of “Assets” in the balance sheets. Is it due to ignorance, convince everybody not just about the ethical aspects but also the<br />

that is, lack of knowledge in the field of valuing the human assets? It is economic benefits that it carries – in fact it will have to prove that it is<br />

not, because many models of valuing the human assets are available. more profitable than its conventional counterpart.<br />

Is it harmful to the balance sheet in any way? Hardly! On the contrary,<br />

it is beneficial; it raises the networth of the company. Further, no * The book “Islamic Banking and Finance: The Future of Financial<br />

depreciation occurs to this asset; instead, it appreciates every year World Order” can be ordered online from www.morebooks.de using<br />

with added knowledge, skills, and expertise. If “goodwill” can be 978-3-8484-0829-0 as the search phrase – it is the ISBN of the book,<br />

considered as animportant component on the asset-side, why not published on 5th March 2012.<br />

human capital? We do hear that humans are the greatest assets to any<br />

Capital World orders<br />

9

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